The document discusses the growth of the food delivery market and the opportunity for "delivery-only" restaurant concepts without a physical space. It introduces the idea of "ghost kitchens" which allow the creation of high-profit, low-risk restaurant ventures through renting small kitchen spaces. The document proposes a "ghost kitchen" concept called Ghost Kitchen that would license brands of popular defunct national and local restaurants in order to satisfy consumer demand and nostalgia through food delivery apps.
Food delivery is currently dominated by brick-and-mortar restaurants, accounting for only 3% of the market. The experience is poor, focusing on dine-in rather than delivery.
The food delivery market is projected to grow at a CAGR of 27.9%, reaching $16.6 billion by 2023, with delivery orders expected to capture 40% of restaurant business.
Delivery-only restaurant concepts eliminate physical space costs, allowing focus on food quality, leading to low costs, faster expansion, and optimized delivery.
There’s a division in consumer preferences between digital natives favoring diverse cuisines and digital immigrants influenced by brand recognition, showing unique market opportunities.
In the future, nearly half of restaurant revenue is anticipated to come from delivery, fueled by digital natives' mobile app usage and the opportunity to leverage brand recognition.
Ghost Kitchen aims to revive popular dishes from defunct restaurants, leveraging nostalgia through limited menus to attract consumers via food delivery apps.
Discussion on various licensing opportunities for ghost brands, along with examples of both national and local licensed restaurants and new concepts.
Cloud kitchens facilitate low-risk, high-profit restaurant ventures like Ghost Kitchen, using rented small kitchens to serve the delivery market efficiently.
Integration of order flow from delivery services into the kitchen operations enhances efficiency, using tools like merged orders and kitchen printers.
The first step is to refine the model in Dallas before rolling out partnerships with delivery-only kitchen providers nationwide.
Contact details for further information, specifically for Alexander Muse, indicating the ownership or management behind the proposal.
The vast majorityof food delivery
currently takes place in traditional brick
and mortar restaurants that are not
optimized for delivery and represent only
3% of the market. Today, online delivery is
a high priced luxury product with a very
poor experience. Everything about the
restaurant experience is designed for
walk-ins and reservations. And while
delivery is growing as a segment, many
operators are forced to trade-off the
dine-in experience with a booming
delivery business.
The Problem
3.
The food deliverymarket is growing at a
compound annual growth rate of 27.9%,
expected to reach $16.6 billion by 2023.
Today delivery orders represent just 3%
of restaurant business, but are on track
to eventually capture 40% of the market.
Food Delivery
4.
The advent offood delivery apps that
generate consumer demand has created an
opportunity for 'delivery-only' restaurant
concepts. Without the overhead and expense
of having to create a physical restaurant a
delivery only restaurant can focus 100% of
their efforts on making great food that travels
well. The advantages of delivery only models
include:
• Low Upfront Costs
• Lower Operational Costs
• Faster Expansion
• Experimentation
• Optimized Delivery
Delivery Only Model
5.
Unique Market Opportunty
DigitalNatives
Mobile Restaurant Discovery
Concept Focused, Ordering Ten
Different Cuisines Per Month
Digital Immigrants
Television Restaurant Advertising
Brand Focused, Ordering Two or Three
Different Cuisines Per Month
Ghost Brand Targets
Concept Targets
6.
Almost half ofall restaurant revenue will
be generated from delivery in the future.
The shift to delivery is being driven by the
propensity of digital natives to discover
and order their food from mobile apps like
UberEats and Grubhub. Digital immigrants
are moving their ordering to mobile as
well, but they continue to be influenced by
name recognition created by thousands
of hours of television advertising for
national restaurant brands. Ghost Kitchen
can capture that residual goodwill by
resurrecting brands (national or local)
that are no longer in a particular market.
Captured Goodwill
7.
Ghost Kitchen's planis to bring back the
greatest entrees of bygone national and
local restaurants. By licensing their brands
and offering limited menus we'll be able to
multiply nostalgia by the demand
generated by food delivery applications.
From a consumer's perspective they'll be
able to order the same fried clams they
enjoyed at Howard Johnson's, the Oh,
Baby™ Back Ribs they used to order from
Bennigans, or the cornbread from the
Black-eyed Pea.
Greatest Hits
8.
Ghost Brands &New Concepts
National License
Examples
Local License
Examples
New Concept
Examples
9.
Cloud Kitchens
The adventof cloud kitchens allow for the creation of high profit,
low risk restaurant ventures like Ghost Kitchen. By simply renting
250 square foot kitchens from kitchen providers in key locations
we can serve the delivery market with very low upfront cost.
Nationwide Rollout
The initialplan is to optimize the model in Dallas and then
partner with various delivery-only kitchen providers like
CloudKitchen to enter markets throughout the United States.