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I'm not looking to start a ghost kitchen or cloud kitchen, whatever you want to call it. I'm here to say it's probably too late for it to be successful. They've already built a negative reputation for ghost kitchens in itself. What they needed to do that is already too late is they needed to make it where you can call in about orders when they're not right or not to customers' satisfaction. They needed to make it where you can review them online. Now, when people think of ghost kitchens, there's a negative image that popps in their heads. All because there were a few people who didn't have business smarts. Now more customers build up in their head that if there's a ghost kitchen it's just a scam don't even pay attention to it and go somewhere else they're actively looking for them to avoid them. And the people that run these things only have themselves to blame.
I would advise everyone after opening a couple of brands. All menus should be small. All menus should overlap. You should be able to start a kitchen for under 10k depending on the city. Depending on the city and zoning you can get started in a concession trailer. I bought two used fiberglass ones for 1200 dollars turned one into a bathroom slash storage and the other into the virtual restaurant. Found a bar that had a parking lot but no food. Signed a contract to cater the bar so it was legal in that city. Also signed a lease to rent the parking spots for 1 dollar each for a year. Them having food and just not snacks greatly increased their business. Was up and running for under 6k.
Technical question, if you recommend not relying on the 3rd party platforms, how do you go about the logistics of delivery? Is having riders also part of the business model then?
Sorry, cloud kitchens are already here. I am a tenant in a commissary kitchen in Colorado Springs and there are several just in there alone. But not being first shouldn’t deter you from starting something. Good luck on your venture.
Great video ... i would suggest ... only asking to smash the like button once at the very end instead of 4% of the video 😂 but it was informative thank you for your time and yes dont worry i smashed the like button ✌️😆
Setting up your own delivery services is a huge liability for small businesses, the insurance rates are huge, work comps are huge since those drivers are operating under your business. Be careful with that advice.
Not at all did it for years. All depends on what state you live in. The thing you need to do is hire them just as Uber, doordash, and all others do. I found that if people are making money they always sign in for shifts on the app. There are plenty of apps that let small companies manage drivers. Even if you go the Dominoes route where the driver uses there car insurance is always cheaper than 30 percent third party delivery services.
@@jamalpeoples3736 I am in Chicago and I got an App that makes all the orders from my website so easy to manage so I was very happy that I could start taking direct orders, however, the problem started when I tried to get drivers. My insurance broker told me to be very careful because the liability I was getting was huge and I checked that with my lawyer and he agreed. I was just trying to get the point across that it is not as easy as just go on your own.
@@IsaiahGrassMusic that's why you don't hire drivers. You get independent contractors. It's not going to reduce all liability but it will cut it a ton. Plus never go to main broker. Search for brokers that specialize in delivery. They will better break down the risk. The apps I am talking about intergrates to your ordering system and automatically ping drivers just like a doordash app. You can sew where they are it will send info to the customer showing how far the driver is away. Even map out the route. I look at liability like this, 3rd party you haven't got any idea who your customers are. Customer info is one of the most things. If they want to knock you to the page they can. When customers complain it's usually in yelp about your food being cold, not the fact that doordash picked up 3 orders in between. You can't even control your delivery area. When I contracted people I kept the delivery area short and sweet that way they could actually make money. I use to run a concept out of a gas station that had a kitchen one side. Sat right at the corner of Devon and Greenview. So I know it can be done.
I visited a cloud/ghost kitchen premise, hoping to start my business there. Unfortunately I was put off by the extremely dirty and unhygienic conditions of my would-be-neighbours. There were lots of food brands, burgers, fast food, etc.. the condition was jarring, I dont want cockroaches from my neighbours visiting my space, as the cloud kitchen is a very tight space, almost claustrophobic, and everyone is just few feet away from you. Was really excited in the beginning but seeing how unsanitary that place was, I decided not to proceed.
I just turned 25 in April and have been going to school for Computer Science. After getting my first job in a corporate environment, I realized why everyone wants to start their own business (especially after Covid has been introduced into our lives). I much rather do my research and take a risk opening a food business in Austin, TX. Thank you so much for providing information on this topic; It really helps people like myself! :D
Hi Wilson! Please make a video on what are the permits and regulations required to open a cloud kitchen. If you already made one please share the link. Thanks
I'm opening a ghost kitchen maybe with Cloud kitchens. I noticed you call them cloud kitchens but that's a brand name and ghost kitchens is the name of the category, but did the brand Cloud Kitchens just see that's the name everyone was stating and then used it for their brand? Do you know? Also if you do different genres of foods, then that means you have to have multiple websites for each brand and that would be too technologically labor intensive right?
Hey there! I have actually worked in this industry for some time. I am not sure why they went with the name Cloud Kitchens, but my guess would be that the term is already well known, and no one is really doing anything like they are yet. At least not in the US. As for having multiple websites, there are a ton of companies out there that can help. Most of your first time customers will find you on a delivery app. You just have to have one web domain that you can redirect them to for future orders. And you can even have multiple brands linked to one domain. There are a lot of inexpensive, and sometimes even free ways to get all this put together without a ton of work on your end. I hope this helps!
Thanks for the video, the concern about owning your customers and not being dependent on the third party apps is how to fulfill orders without going bankrupt
This was an excellent video. My sister and I are working on a business and I'm so grateful to have come across you. If I could like twice, I would, lol.
OMG--this video makes so much sense as to why my CK operations failed. I relied on the third party apps which was eating my kitchens and relied on future foods which ate 50 percent commission. My cost of food was not high enough and I wasted a lot of money because I did not have my numbers right. I had multiple brands but the rent at CK was very high too and I was not getting enough demand.
Great video thank you. This is priceless information. I build the Cloud Kitchens. I do the start up and commissioning and programming for the building automation system. They are a cool concept and I think I'll do one of my own in a couple years.
I would love to do this. I am plant based and very good at fix about just anything and the food is so good and taste like what your been used to eating.!!
Wilson, i am starting a Cloud kitchen on September 10, a Mexican concept as my first one 4 minutes away from Arizona State University ,and a big outdoor mall right down the street .I am trying to decide if Mexican comport food is big with university students.
Isn’t a cloud kitchen the actual facility that is being used to produce the food? Whereas you’re talking about restaurants/caters that USE a cloud kitchen.
This can be applied to any other restaurant business not only for cloud kitchen business. You telling us Uber can steal your business because you get into cloud kitchen business.! How this is different than Uber stealing business from any other restaurant business? Uber has its own chefs now? Let's say they steal my business how they are going to deliver the menu I make I created?
Tengo 2 taquerías en Mexico. Pobre con chilaquiles in a box como restaurante en la nube y me fue tan bien que ahora quiero más restaurantes en la nube!
Hey Wilson I’ve been following you in forever and I’m finally starting my cloud kitchen April 8th and wanted to ask what online payment company do you recommend for curbside pickup????? Thanks in advance bro! 👍
I’m thinking of starting virtual kitchens as extensions of my two already existing places. I was wondering whether leasing a kitchen space is better than renting a kitchen from an already established restaurant (or if the latter is even possible).
I recommend square! I have been using and evolving for 12 years ! Square is a fair price point starting off and as you grow it will develop tools for your business space.
