Are Delivery Only Restaurants The Future or Just A Trend?

Posted by Karen Erdelac on Apr 25, 2017

Are Delivery Only Restaurants The Future or Just A Trend?Food delivery is big business and many small business owners have adapted to incorporate a delivery only “ghost” restaurant model.  These establishments are maintaining a solid footing in some of the biggest cities in America.  “A study conducted by the turkey company Butterball discovered the average American spends almost $1,100 on takeout/delivery each year. That ends up being about $21 spent weekly. It also found the one in four people order food online at least once a week” – aol.com.  With such a large market and the obvious benefits of not having a physical store front is this the future of the American restaurant?  Not only does this model cater to the fast paced American lifestyle, it provides a fiscally responsible avenue for aspiring restaurateurs to establish their brand and put their talents on display.

Digital Dominance

Those that have been successful in establishing a delivery only restaurant have largely depended upon digital avenues to reach their customers.  Eliminating “front of house” responsibilities and costs allows restaurant owners to focus on marketing and bringing exposure to their brand.  Without a physical storefront to put your company on display the digital world becomes far more important.  With 25% of Americans ordering food online at least once a week and those people represent a key demographic for those considering a delivery only model.  Aside from offering online ordering it is perhaps even more important to have a mobile friendly option.  Creating or purchasing an app designed specifically for your restaurant can provide a dramatic increase in online sales.

Property Flexibility

Perhaps the biggest benefit to the delivery only model is the flexibility it provides you when purchasing business space.  Without the need for a physical store front your options will be greatly expanded and your costs will be greatly reduced.  For traditional restaurants it’s all about location but since your main focus will be digital sales your location is essentially wherever you want it to be.  Restaurateurs spend thousands annually on furniture and décor which is a cost that is all but eliminated without a dining area or storefront.  You will however want to research the area you plan to set up shop to ensure you are within reasonable driving distance of your target market.

Easy Maintenance

Having a smaller restaurant means less time and money spent on upkeep.  This allows for employees to focus on the quality of your product rather than menial tasks.  Cleaning products and the man power needed to maintain a large scale restaurant can be extremely expensive and are purely overhead.  Building maintenance will be far less frequent and there will be no need for decorative items or costly renovation projects.

Reduced Staff

Are Delivery Only Restaurants The Future or Just A Trend?Staffing is one of the biggest costs restaurant owners face.  The price to recruit, hire and train staff has grown increasingly higher and is a constant struggle for small businesses.  Without the need for “front of house” staff your workforce will be greatly reduced.  This not only helps your bottom line, it allows you to hire better talent thus improving the quality of your product and service.  Since you will have a smaller staff you will need to be very particular about each hire.  Make sure they are dependable and fit into your company culture.  With a smaller staff there are fewer contingency plans so you need to make every hire count.

While dine-in restaurants will never fully disappear there appears to be a solid niche market for the delivery only “ghost” restaurant model.  For those that are just starting out or have struggled to make a traditional restaurant profitable they offer an option to keep your dream alive.

In many cases small business owners lack the credit or collateral to access the money needed to remain flexible.  Quikstone Capital Solutions provides fast cash for businesses.  A merchant cash advance from Quikstone Capital Solutions is a business loan alternative that can help your business thrive and prosper, whether you need cash to buy equipment, cash to renovate or expand, cash to purchase inventory, cash to advertise or cash for emergencies. Quikstone Capital Solutions can help provide you with the business capital you need. Contact us for a consultation today.

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Topics: Restaurant