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:
We’ve gone over a number of different ways that you can get involved in the dot kitchen industry and a number of different models. There are pros and cons to setting up a dark kitchen using these different models. So we’ll go through a few of these now. No one is using an existing restaurant kitchen. So see the pros here. That kitchen already exists. You don’t have to go into buying equipment and dealing with all that kind of stuff. It already exists. It’s already there. You’re slightly further ahead of the game also. All usually all of the utilities that you’re interested in, gas, water, plumbing, sewage, et cetera, are already in place, as are all the licences of permits. Usually if you’re going into an existing kitchen, then it will already have planning permission to be a restaurant kitchen. It will have no health and hygiene permits and things like that. So again, it’s extra stuff off of your plate. Another pro is a central location. Most restaurants are set up to be close to footfall and demand, so they’ll be in a central location, meaning the majority. The demand will be within easy reach. You’ll delivery drivers and other priories. They’re likely to have very good storage space, either because you don’t have a dine in front of house and you can repurpose that into kitchen and or storage or that these will just be larger buildings anyway and they will have the storage situation already sorted out on the con side. These can be harder to find. People are probably already using them as restaurants. They won’t be so many of those restaurants that are out there that are available for use of this kind of thing. They might have something wrong with them. They might be the long wrong location for a restaurant. Their permits might lapse. Things like that. So finding them can be harder because you’re looking in a very much more restricted place. But they are out there. You may have to spend money on refurbishing them. If you’re if you find a restaurant which is willing to take on this model, then there are other out business. For some reason, or they may be left closed and derelict for a period of time. So they might require a bit of capex for refurbishment. They’ll probably be more expensive from a rental perspective, again, because they are restaurants which are an existing high filt footfall areas, prime retail locations. So they’re going to be more expensive to actually rent than some of these other options. It’s likely that you will be asked to sign into a long term contract. These will be traditional retail locations and traditional retail real estate rental contracts are for fairly long periods of time. You know, you have to take a lease for two years, three years, four years plus in order to lock in the kind of prices that you’re interested in. And another con, it can be hard to scale this, partly because they’re quite hard to find. You know, two restaurants are likely to be alike. They will have different set ups. They will have different existing equipment. They’ll be different shapes, places, locations, et cetera. So trying to replicate the same model over and over and over again can be harder because you’ve got to adjust everything for each new location. Second way for setting up a clear kitchen is joining an existing coworking kitchen. So the pros there are got very cheap setup costs. Someone else has already invested the money to set all the equipment, everything up. It’s literally just a case of renting your space in there. You can start majorly. Everything’s already set up for you. Everything’s in place. All you have to do is turn up with your kit and your food and away you go. They also have or tend to have very flexible rental terms. No long term contracts, things like that. The reason being a lot of people use it as a first stepping stone onto further opportunities. And so they’re going to offer you good, cheap, short term rents. On the con side, you’ve got your sharing that place with lots of other people, their shared resources. There’s lots of other stuff going on in. Most of your competition will probably be in there as well. There’s all that competition for equipment, fridges, freezers, rages, etc. It can also have quite poor availability. These places tend to be in demand. You will find that. There aren’t many spare places available in a lot of these places. There aren’t that many of them. People are keen to get into the industry. It’s an obvious first step. And so trying to get in there can be a matter of luck. Again, unknown for similar reasons. It can be hard to scale. It’ll be hard to find additional space in some of these places, again, because they’re oversubscribed. Once you are in there, you may be able to expand as other people drop out or other businesses fail around who you might be able to expand into their slots. But there’s no guarantees that that’s going to happen again. So it can be hard scale. Number three is the modular kitchen model. So these are your shipping container kitchens, which can be placed in many different, varied locations. So because you can stick them in many different places, you got much cheaper location costs for these. You are only competing with the people who want to rent random bits of space as you’re not trying to compete with people for prime real estate locations, retail locations. You are competing with people just for general space in the general area of a given town or city. You’ve got the flexibility of location. We’ll go through that later on in the course. But essentially with these things, you can stick them anyway, which has utilities and you’ve got permission to put them. You’re far more likely to be able to negotiate short term contracts. The people, the landlords of the places where you’re looking to place these modular kitchens are probably not used to having too many people approaching them for their space. And so we’ll probably be amenable to negotiation when it comes to the length of contracts and things like that. These modular kitchens are far easier to scale. Once you settled on a particular way of doing things, a particular type of location, a particular set up, it’s very repeatable because you can just go out and look for the same locations over and over again. You’ve got far less competition in this market and so you’re more likely to be able to find other equivalent places. On the negative side, you do have slightly more restricted locations, meaning because this is such a new model, people are less used to hearing. About it, the landlords are less used to having people ask them to put these shipping containers on their land. Things like that. And so the initial conversations you might have with some of these people could be slightly difficult. But. I’m sure you can talk them round us to the benefits of the financial benefits of the situation. Another issue surrounding this can be permit’s, whereas if you’re going into an existing restaurant or some retail space, which is zoned for for a restaurant, a lot of the permits, things like that may already be in place. If you’re going after locations which aren’t sort of typical restaurants and aren’t typical food preparation places, then you will have to go out and get the permits yourself. It’s not too difficult, but you will have to do that. The other con here is access to utilities. A lot of these spaces that you’re going to be looking for won’t necessarily be plumbed for water, sewage, gas, electric, all those kind of utilities. You may need for the kitchens. That’s not to say that all of them aren’t. Or maybe you’ve got one or two of them and you’re missing one of them. Again, you will be able to negotiate with your landlord or with the people that you are negotiating for the space to actually have some work done to put utilities in. If you can convince them that it’s worth their while doing this, then they may well go the extra mile and put those utilities in. But access utilities will be more difficult, difficult than going out to the market and going to existing restaurants.