Covid-19 has disrupted travel patterns and an increasing number of people have embraced working from home. There are fewer workers in the central business districts of cities and malls are down significantly in total customer traffic.
As a result, many franchisors are looking at their location footprint and finding that their locations are no longer optimized for serving their customers. Embracing delivery has helped many restaurants retain sales during the Covid-19 pandemic, but a central challenge persists: Are your locations where your customers want you to be?
The flip-side of this question is the opportunity. For multi-unit restaurant groups and franchises, there is a significant opportunity for brands that are able to expand their service areas and reach new customers.
Ghost kitchens are one possible tool for franchisors looking to accelerate their growth and expand their brand into new markets. There is a great deal of variation within ghost kitchen operating models – this article will focus on the opportunity presented by managed cloud kitchens and host kitchens.