These shared-space restaurants are fast and low cost,
but failures have piled up in the new business model that’s still like
the Wild West.
Can a restaurant be a restaurant if you take away the cashiers, tables and diners?
Thomas Pham, a franchisee with 10 Halal Guys kebab restaurants in Southern California, is giving it a try. He turned to the newish “ghost kitchen” business model earlier this year as he builds out his company.
Rather than paying as much as $500,000 upfront for a new restaurant, he opened a location in a shared-space kitchen in Pasadena that makes food for to-go and delivery customers. The cost: $20,000, plus a $5,000 monthly fee, which is half the rent for a brick-and-mortar restaurant, he says. With delivery orders booming across the restaurant industry, these new-style cookhouses may be just the ticket for growth...
RSK: This is very interesting. Although in its infancy several have come and gone. The strong point in today`s environment would be you do not need to have as many employees which is huge. You also do not need the best expensive location either. But people still want to go out and have the full experience. This too will morph as is brick n mortar and on line retail.
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- - Volume: 7 - WEEK: 21 Date: 5/21/2019 7:18:02 AM -