Ghost kitchens have changed the way we think about food service, but their success relies heavily on digital marketing rather than foot traffic or prime real estate. Without a physical storefront, their online presence is their storefront. They became wildly popular during the COVID-19 pandemic, but experts believed it was a bubble that would pop.
However, as data shows, the ghost kitchen market is still growing and is set to hit a market cap of $157.26 billion by 2030. All this at a growth of 12% clearly shows that this isn’t a dying niche like some would suggest.
That said, with so many big companies deciding to start competing in this field, you need to dramatically up your game to survive and thrive. In this article, let’s look at three ways you can ensure you don’t get left behind.
1. Going All In on Local SEO and Digital Marketing
Restaurant businesses have always benefited greatly from SEO. This isn’t groundbreaking news to anyone. You might have heard of the viral Thai restaurant that named itself “Thai Food Near Me” just to capitalize on potential benefits from customer searches online. Robert Sampson, a co-owner of the restaurant, said the decision did more for them than they ever imagined.
Sadly, many entrepreneurs in this niche rarely put in the effort to hire a good local SEO company that can help unlock their full potential. Think about it: as a ghost kitchen, you don’t even have the usual opportunities for discovery that traditional restaurants do. You are completely reliant on your local online presence.
This is why any investment toward growing your digital sphere of influence is well worth the money. Good SEO practices, such as having enough citations around the internet, are tremendously helpful. As AlchemyLeads explains, these are like online signposts that point customers to your business.
You’ll also want to focus on content-driven strategies to attract organic traffic. A blog covering food trends, recipes, or behind-the-scenes stories can help establish authority in the niche. Likewise, social media also plays a massive role, with platforms like Instagram and TikTok acting as powerful discovery tools for food businesses.
If you can arrange for high-quality food photography and leverage short-form videos from collaborations with influencers, it can significantly boost your visibility.
2. Avoiding Overreliance on Third-Party Delivery Services
Most ghost kitchens rely on delivery platforms like Uber Eats, DoorDash, and Grubhub to attract customers. While these platforms provide exposure, they come with a major downside—high commission fees that eat into profits.
Studies have shown that on average, delivery services take up to 30% of revenue, with the rest going to the restaurant. According to Professor Robert Swinney, Duke University Fuqua School of Business, delivery apps won’t go away because ‘people are now used to them.’
While Swinney’s comments focus on traditional restaurants, it has a more than significant overlap with the ghost kitchen model. So, what’s the solution? One angle suggests that the key to long-term success is using these platforms strategically while also building an independent brand.
That way, your profit margins aren’t completely destroyed the moment delivery services change their business models. To avoid being at the mercy of fluctuating fees and algorithm changes, focus on your own logistics operations and direct ordering systems. This goes a long way toward creating more sustainable revenue.
Just remember that you might need to offer exclusive deals for direct orders because one challenge will be getting customers to switch from food-ordering apps. Ghost kitchens that rely only on delivery apps risk becoming invisible the moment an algorithm change pushes them to the bottom of search results.
3. Find Ways to Expand Your Customer Base
Relying solely on individual food orders can be limiting, especially when competing in an increasingly crowded ghost kitchen market. If you wish to truly thrive, you’ll need to explore additional revenue streams beyond traditional food delivery.
One of the most lucrative expansion opportunities is offering catering services for corporate events, private parties, and special occasions. Unlike standard food delivery, catering orders tend to be larger and more predictable, providing a steady revenue stream.
Businesses and event organizers are often looking for high-quality, hassle-free food solutions. Ghost kitchens—without the overhead of dine-in service—are well-positioned to meet this demand. If you can create customizable catering menus or meal packages that make it easier for clients to place large orders, do it. The potential for growth is vast, and you can scale up quickly if you play it right.
Similarly, subscription-based meal plans are also becoming popular these days. Data shows that there’s rising interest in customizable meal plans, and this niche is on track to be worth $12.75 billion by 2032.
Instead of relying on one-time orders, you can offer weekly or monthly meal subscriptions for customers who want convenience and variety. This model works particularly well for niche markets, such as health-conscious consumers looking for pre-portioned, nutritious meals.
Frequently Asked Questions
1. What is the concept of a ghost kitchen?
A ghost kitchen is a food business that operates without a traditional dine-in space, focusing solely on delivery and takeout. These kitchens rely on online ordering platforms and digital marketing to attract customers. As a result, they manage to reduce overhead costs compared to brick-and-mortar restaurants.
2. What are the disadvantages of ghost kitchens?
Ghost kitchens face challenges like high competition, reliance on third-party delivery platforms, and limited brand visibility. Without a physical storefront, customer trust takes longer to build, and marketing efforts must be strong to stand out. Moreover, delivery app commission fees can significantly cut into profit margins.
3. How do I promote my ghost kitchen?
Promote your ghost kitchen by investing in local SEO, social media marketing, and direct-order incentives. You’ll want to build a strong online presence through a dedicated website, collaborate with food influencers, and offer services beyond typical individual food orders.
Long story short, if you want your ghost kitchen to thrive, you’ll have to start thinking beyond traditional food delivery. You’ll also want to stop being so reliant on food delivery apps and invest in your brand. This is the only way you can build a more resilient business model in the face of heavy competition.
