With delivery at an all-time high, it is no surprise that virtual restaurants are popping up on the food scene—or rather, popping up online. Virtual restaurants (also known as virtual brands) offer online menus and a delivery-only model. While very similar to the ghost kitchen, some say they are different; the main distinction being virtual restaurants are typically started by an operator that already has a brick-and-mortar location (or food truck) but are looking for an entirely new revenue stream out of the existing kitchen. The kitchen, equipment, crew, and most ingredients are already a part of the operation—the virtual restaurant is just another opportunity to cater to consumers’ need for convenience and drive sales, while existing entirely on delivery apps like UberEats or GrubHub. While this system is highly effective during a pandemic in which many consumers are eating at home, concepts of this nature were hitting the scene earlier than 2020.
So, aren’t these just another way to order delivery from already-existing restaurants? Not exactly. Typically, the offerings are entirely different from what the concept is currently serving, presented as a separate brand or exclusive menu. Fine dining Vietnamese restaurants are offering rice bowls, Italian fast casuals are fixing wings, and roast beef sandwich joints are frying up chicken. Large chains are using this as an avenue to test potential permanent menu items. Even celebrities such as Mariah Carey and Mario Lopez are hopping on the trend by connecting with virtual brands.
It is not just single restaurants that are taking advantage of this concept. Entire virtual food halls are in the works. This model circumvents the social aspect of the food hall, but still provides the variety. Virtual food halls offer consumers multiple restaurant options in a single digital delivery order. Chef Eric Greenspan has created his own virtual food hall that includes 4 separate concepts: one with burgers and chicken sandwiches, another with breakfast burritos, a third with egg sandwiches, and the last is a variety of Asian-Latin mashups. Another hospitality group in Philadelphia is creating a similar idea to cater to the college students that live in the area.
Could you picture your operation doing this? Creating your own virtual brand or getting on board with one that is already established could be an interesting way to increase your bottom line. What we’re sure of is the creativity and resiliency of this industry is amazing to watch and we can’t wait to see where it goes next.
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