10 Reasons Why Restaurant Operators Should Embrace Virtual Delivery-Only Brands

The restaurant industry has always been about adaptation, from shifting consumer tastes to new technology and evolving service models. One of the biggest opportunities in today’s foodservice landscape is the rise of virtual delivery-only brands, also known as ghost or virtual kitchens.

These digitally-native concepts operate out of existing kitchens without a traditional dine-in presence or storefront, offering food exclusively through third-party delivery apps or direct online ordering.

Here are 10 compelling reasons why it makes sense for restaurant operators to add a virtual delivery-only brand to their business:

1. Maximize Underutilized Kitchen Capacity

Almost every restaurant has downtime during off-peak hours or excess kitchen space that could be better utilized. A virtual brand allows you to leverage that unused capacity to generate additional revenue without major infrastructure changes, addition of staff or increases in occupancy costs.

2. Increase Revenue Without Expanding Your Real Estate

Opening a new brick-and-mortar location is extremely expensive, and there are no guarantees that you will see return on that investment in the short term, or maybe ever. A virtual brand lets you tap into new markets or cuisines without the needs for new leases, expensive buildouts, or new staff, making it an extremely low-cost way to grow your business.

3. Diversify Your Revenue Streams

Did your father ever tell you ‘Don’t put all your eggs in one basket?’, mine certainly did. The fact remains in today’s restaurant business that most operators are doing just that. Adding a virtual brand to your kitchen, allows you to offer an entirely different concept and menu (maybe even 2 or 3) all under one roof, helping you appeal to new customer segments and protect your business against downturns in your core offering. It also entices your customers to order more often.

4. Adapt to Consumer Behavior

If you haven’t realized by now online food delivery is no longer a trend, it is a standard. By launching a delivery-first concept, you are meeting consumers where they already are: on their phones, and ordering food on delivery apps. Why fight it?

5. Test New Concepts with Low Risk

Aligning with a virtual brand company, like EpiCore Virtual Brands, allows you to try new menu ideas in your business without making a wholesale change to your menu and affecting your core brand. By adding a virtual brand, you can test a different pricing level, new branding, and menu items that you would not normally carry, without the risk of altering your primary brand’s identity or customer base.

6. Boost Margins with Smart Menu Engineering

Virtual menus are generally designed around ingredients that you already stock in your restaurant, or at least the majority. They are also designed to cross use items for maximum efficiency so that you do not have ‘Orphans’ on your menu. Virtual delivery-only brands have menus that include dishes that travel well, which also helps improve inventory efficiency and reduce waste while optimizing food costs.

7. Gain Visibility on Delivery Platforms

Delivery apps often give preference to new or unique concepts. 60% of Canadians who order more 2 times per week on a 3rd party application said that ‘they are three times more likely to try a new brand through home delivery than by going and visiting the brand for a personal dining experience’. Launching a virtual brand will certainly increase your presence in search results and draw attention to your core restaurant as well.

8. Respond Quickly to Market Trends

Craving for Gourmet Poutine exploding in your area? What about authentic Italian dishes or thick blended milkshakes? A virtual brand allows you to move fast, launch a trend-forward menu, and tap into demand before you competitors catch on.

9. Enhance Staff Productivity

With efficient kitchen workflows, your staff can prepare orders for multiple brands without much added complexity, especially when menus are designed with cross-utilization in mind. This increased revenue is making your staff labour costs much more affordable, thus improving your net bottom line.

10. Future-Proof Your Business

As digital ordering continues to grow, having a delivery-first strategy is not just a side hustle, it is a strategic move build your core business and stay competitive in an evolving food landscape. Virtual brands help you stay agile and relevant.

Food For Thought

Virtual delivery-only brands are not just a pandemic experiment, they are a sustainable way to boost your revenue and profitability, reach new consumer audiences, and future-proof your business from economic downturns. For restaurant operators ready to innovate without the need to overspend, going virtual could be the smartest move you make.

About the Author

David Chadwick is the President and Founder of EpiCore Virtual Brands, a Virtual QSR Restaurant Brand company that is committed to helping restaurant operators maximize their business and succeed in today's highly competitive industry. David is restaurant veteran of over 40 years, and is passionate about seeing restaurants take advantage of the success that they once enjoyed.

To learn more about EpiCore Brands and how they can help you, contact us at epicorebrands@gmail.com