Why Chains are Rolling out Virtual Kitchens

As restaurants ramp up off-premise business, the more orders kitchens have to accommodate for.

Starbucks and Chick-fil-A hire staff members specifically to handle mobile orders, but some brands are investing entirely in separate spaces strictly allocated for off-premise operations.

Chick-fil-A, Outback, Famous Dave's and Dog Haus are some of the chains using virtual kitchens as a solution to the influx of delivery sales. By prepping some of these orders off-site, it allows in-store kitchens to focus on in-store orders.

“Delivery is the hottest word out there in the food scene, and everyone needs to figure out how to adapt to it,” said Andre Verner, Dog Haus partner to “Restaurant Dive.”

According to Foodable Labs, over 30 percent of the U.S. Restaurant industry is using some form of on-demand third-party ordering solution.

But that number is still relatively low considering the number of consumers ordering delivery. Over 80 percent of consumers under the age of 35 are using on-demand food ordering apps about two times a week. Not to mention, as "Restaurant Dive" points out, according to Food On Demand, delivery sales are 75 percent higher than in-store sales. So there's a lot of potential in the off-premise market.

This is influencing established chains to jump on the virtual restaurant bandwagon.

"The Halal Guys and Canter’s Deli have spots at Kitchen United’s Pasadena, California, location. And Wetzel’s Pretzels, which partnered with Kitchen United in April, has already experienced growth in off-premise and in-store sales," writes "Restaurant Dive."

Want to learn more about these concepts? Listen to this recent episode of The Takeout, Delivery and Catering Show, where hosts explain the benefits of these virtual restaurants, also called ghost restaurants and how they are changing off-premise operations.