The Emerging Virtual Kitchen Sector
Nigerian innovators need to consider this: virtual kitchens or what they call ghost kitchens. The scale of production could bring more efficiency in the system, and possibly will reduce cost for the meals. Cloud kitchens are commercial facilities purpose-built to produce food specifically for delivery rather than sit-down service. These commissary kitchens work with delivery-only food brands to serve communities where they operate. Uber Founder and ex-CEO, Travis Kalanick, runs a popular ghost kitchen startup called CloudKitchens. This sub-sector is getting popular in some major cities.
Entrepreneurs and restaurant kitchens are joining forces to serve up a new business model in the food industry: ghost franchises. Independent restaurateurs are taking up side hustles in preparing the food offered by virtual food brands that exclusively serve customers through delivery apps. In some ways, it’s a winning recipe. Virtual food brands are able to spread rapidly across the country while participating, local restaurants, that may be struggling, can make some extra cash. However, some worry it could also be a liability, “exploding the marketplace in ways that serve big brands more than small businesses.”