recentpopularlog in

jerryking : doordash   2

The Rise of the Virtual Restaurant
Aug. 14, 2019 | The New York Times | By Mike Isaac and David Yaffe-Bellany.

Virtual restaurants” exist with no physical storefronts, tables or chairs. They exist only inside a mobile app, like Uber Eats, the on-demand meal delivery service owned by Uber......Food delivery apps like Uber Eats, DoorDash and Grubhub are starting to reshape the $863 billion American restaurant industry. As more people order food to eat at home, and as delivery becomes faster and more convenient, the apps are changing the very essence of what it means to operate a restaurant.

No longer must restaurateurs rent space for a dining room. All they need is a kitchen — or even just part of one. Then they can hang a shingle inside a meal-delivery app and market their food to the app’s customers, without the hassle and expense of hiring waiters or paying for furniture and tablecloths. Diners who order from the apps may have no idea that the restaurant doesn’t physically exist.

The shift has popularized two types of digital culinary establishments. One is “virtual restaurants,” which are attached to real-life restaurants like Mr. Lopez’s Top Round but make different cuisines specifically for the delivery apps. The other is “ghost kitchens,” which have no retail presence and essentially serve as a meal preparation hub for delivery orders.

“Online ordering is not a necessary evil. It’s the most exciting opportunity in the restaurant industry today,”....Many of the delivery-only operations are nascent, but their effect may be far-reaching, potentially accelerating people’s turn toward order-in food over restaurant visits and preparing home-cooked meals.

Uber and other companies are driving the change. Since 2017, the ride-hailing company has helped start 4,000 virtual restaurants with restaurateurs which are exclusive to its Uber Eats app.....Uber Eats analyzes neighborhood sales data to identify unmet demand for particular cuisines (e.g. "there is demand for late-night orders of burgers and ice cream in your area"). Then it approaches restaurants that use the app and encourages them to create a virtual restaurant to meet that demand.....Restaurants that use delivery apps like Uber Eats and Grubhub pay commissions of 15 percent to as much as 30 percent on every order......Delivery apps may also undermine the connection between diner and chef. ....Delivery-only facilities “take away the emotional connection and the creative redemption.”....In Europe, the food-delivery app Deliveroo also started testing ghost kitchens.....Ghost kitchens have also emerged in China, where online food delivery apps are widely used in the country’s densely populated megacities.
brands  DoorDash  commercial_kitchens  emotional_connections  food_delivery  kitchens  mobile_applications  restaurants  Uber_Eats  GrubHub  on-demand  unmet_demand  virtual_restaurants 
7 weeks ago by jerryking

Copy this bookmark:





to read