Not so long ago, the term “virtual brand” was met by blank stares and incomprehension. For
some, it may have been associated with pioneering fashion houses, social media giants or the
latest digital marketing endeavors. Today, however, virtual food brands have revolutionized the
restaurant industry.
At its heart, a virtual brand simply refers to any business geared towards online ordering and
delivery. The trend accelerated during the global pandemic, with the explosion of food delivery
and off-premise operations offering benefits to businesses and customers alike.
So, what exactly is a virtual brand and how can it help you scale and grow your restaurant?
Ghost Kitchens vs Virtual Brands
While the terms ghost kitchen and virtual kitchen are often used interchangeably, they aren’t
exactly the same thing.
Think of the difference this way:
● Ghost kitchens (aka dark kitchens) are the physical location where brands run their
operations. These kitchens are only used to prepare food for off-premise dining, usually
via online food delivery.
● Virtual food brands refer to the “brand” itself – not the brick and mortar premises. This
means a ghost kitchen could host multiple virtual brands. A traditional restaurant (with a
customer-facing dining room) could also host additional virtual food brands.
It’s an important way restaurant operators can improve their profitability, engage new customer
segments and evaluate menu items. With this in mind, here are just three ways virtual brands
can increase your restaurant’s revenue:
1. Opening new markets and expanding your customer base
If your kitchen is only busy during dinner service, you’re missing out on revenue throughout the
day as well as late night.
Virtual Brands can open the opportunity for you to capitalize during the breakfast and lunch
hours. What about late-night when most restaurants have closed for the evening to tap into the
needs of the hospitality industry labor force and other late-night workers. This will mean your
kitchen operates to its full potential, no matter the time of day.
Lastly, think about the generation of convenience? How many of you know a teenager that
didn’t get their driver’s license the day they turned 16. It is no longer necessary when everything
include food can be delivered right to their door.
The right Virtual food brands will help improve your ROI on property and equipment, as well as
labor costs.
2. Testing menu items
Related to new markets (at various times of day), virtual food brands enable your business to
connect with new audience segments. You could run a fun vegan food brand (for instance) –
reaching new, younger audiences who might not support a “traditional” brick and mortar
restaurant.
This also allows you to test novel items and ingredients (and train your chefs on any new
processes), assessing online delivery demand (and feedback) before moving dishes onto your
existing menu.
3. Connecting with consumers
There’s nothing to stop you running multiple virtual food brands from a single kitchen. This
means restaurant owners can experiment with niche concepts, catering to highly specific
consumer subsegments.
With this in mind, your brand could specialize in grilled sandwiches, paleo diets, artisan cookies
or the ultimate mac and cheese. Whatever style of food you choose, you can experiment with
concepts and connect with new consumers, all without adding to your operational costs.
Let my team @ Peckwater Brands show you how. We empower kitchen owners to
run successful delivery only franchises from their existing kitchens. You could be
only one click away from extra orders and increased profits.
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