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The following video transcript is generated automatically by a computer algorithm that learns and gets better on a daily basis. Please accept our apologies if some content below doesn’t make sense:

There are various business models associated with dark kitchens, various ways in which people take advantage of the industry and run business within this industry. The classic one is the single brand. That is where you have one brand or one face to the market. So you’ll be operating under Acme Corp or Acme Restaurant, whatever you want to call it. And you offer one, maybe two cuisines on the various apps or in the online stores. You’ll be offering on the order about 20 menu items and you’ll be looking to do about 500 meals per day. So this is the classic single brand, single menu set, one or two cuisines. And that’s usually the start, a model for a lot of these dark kitchen businesses. Step up from that. You’ve got the multi-brand model. This is where you’ve got multiple brands or multiple faces to the market. So you operate more than one named restaurant out of one single kitchen. It’s the same people cooking it. Probably it’s the same infrastructure, the servicing it. But you can be multiple brands to multiple people. They don’t have to know what’s going on behind the scenes as long as you’re producing good quality food that they’re willing to pay for. Then everybody’s happy. Usually this is multiple cuisines, multiple menu items. This is serving a thousand plus meals per day, often across those different brands. Hey, you get economies of scale because as I said, you have got the same people and infrastructure servicing these multiple brands. So any spend that you’ve got on things like marketing and he spends, you’ve got on materials and foods and things like that all go towards helping multiple brands. And so your your average cost per brand comes down. Another good aspect of this is you can cross, promote and cross-sell. So your audience. You can mix and match your audience. You may gain a follower, a patron from one of your brands, and then you can then spend time and effort and upselling them to your other brands and you can then increase share what it that way. Another motto is the virtual kitchen model. And essentially that is taking an existing restaurant and repurposing it into one of these dark kitchens, virtual kitchens. So that means that you are cooking and serving those meals out of the kitchen. Now, this might be a an underserved kitchen of a normal restaurant. So maybe there’s a normal restaurant which doesn’t have as many covers as they have as tables. They find that their kitchen. They’ve got a large kitchen in relative proportion to their front of house. And so they’ve got spare capacity in their kitchen. And you can take that spare capacity and use it to serve other foods, other cuisines, other brands, even out of that same kitchen, especially taking up the slack that’s available in that kitchen or the other way that you can do this as you just take over the restaurant entirely and get rid of the front of house and expand the kitchen, use the area that was previously taken front of houses, additional storage, additional kitchen space. And so you for the same cost flooring of that restaurant, you can do more business, several meals served, more customers cross multiple brands. And obviously you also have the same flexibility to experiment, which you probably don’t have with a traditional restaurant. You know, if you go to an Indian restaurant, then your expectation is they’re not going to be selling Chinese food or Thai food or things like that. Whereas if you have one of these restaurant spaces, there’s nothing to stop you from having an Indian brand or Thai brand, a Chinese brand, et cetera. Coworking kitchens are becoming more popular. Now, this is usually set up by investors or entrepreneurs where they take out one giant warehouse type space and they fit it out with multiples of factories, worth of kitchen areas and kitchen space. And then you go in there with your group of chefs and preparers and rent out one small portion of that area. There will be multiple people of multiple business people when they’re running multiple companies. And so you’ll be in there with a whole load of extra chefs from other different companies and everyone’s cooking their own brand, their own food, and then let the delivery people come to the front of that giant coworking space to pick up their stuff. And so it’s equivalent to it’s equivalent to coworking spaces in normal, everyday entrepreneurship. You know, you’ve got lots of businesses all taking advantage of the facilities and infrastructure that someone else has set up like we work. But, you know, far less in debt. This is typically set up in very central locations, either industrial locations or central cities. So they’re very close to dense populations in order to, you know, have the demand to service that larger set up cuisines. They want to experiment or you’re just starting out, then a first step could be to go into one of these coworking kitchens, rent a small amount of space. Try because and try and build your marketing, try and build your audience, and then break out from there into one of the other models that are available. Next is managed dark kitchens. And now essentially this is where someone, a third party sets up these smaller dark kitchens and they produce food on behalf of other people. So usually this is they will take on franchises like your classic franchises like McDonald’s and KFC and Subway and all those kind of things. But rather than doing it from a traditional franchise location, they’ll do it from one of these dark kitchens. Usually it is the operator who is in charge of the logistics here. So the person who or the people who set up the kitchen aren’t necessarily the same people who run the kitchens inside. It may well be that it’s someone who has just set up the dark kitchen areas and then brings someone else in a sublet set in essence, and they are the ones who produce and do all of the logistics associated with it. Then there is a revenue share between the brand that’s doing the cooking and the operator who is actually operating the business.
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