What Are Dark Kitchen Businesses & How Do They Work?

The meaning of owning a food business has evolved rapidly in recent years. No longer just a cafe or restaurant, food businesses take many shapes and sizes. The smallest, being coffee vans and food kiosks such as Gourmet Sushi. Dark Kitchens are also one of the smaller types of food businesses to own. Maximising potential with minimal space is the goal of kiosks and kitchen-only businesses. Despite not having an eat-in option, the boom in online food ordering means these smaller food businesses still turn over well.

What Are Dark Kitchen Businesses?

You’re probably already visiting dark kitchen businesses regularly. Food outlets without a seating area are the most common. Think of pizza takeaways, Domino’s and Papa Johns franchises rarely have a seat in area. They often operate as a small shop, with space prioritising kitchen accommodation.

Ever wondered where dark kitchens get their name? Dark kitchens are called so because of the way they operate. They take orders primarily over the phone or online. Some good examples are Chinese and Indian Takeaways where there is no eat in area. Operating primarily as a food preparation unit, dark kitchens operate out of the sight of the public, serving collect and delivery orders only.

Dark kitchen businesses may also be referred to as cloud or ghost kitchens.

How Do Dark Kitchen Franchises Work?

Running a business that doesn’t have an eat-in area has many advantages. Despite its obvious shortcomings of no seating, the smaller unit size makes the opportunity favourable to those with less capital, or limited premises space. These dark kitchen businesses work by operating primarily as a kitchen. There may be a counter at the front of the shop to handle collect orders

These types of food businesses operate primarily online or on the phone. By losing the seating area, you also lose front of house staff and many overheads. Running primarily as a food takeout business, staff and operating costs can be cut considerably.

Today, many food businesses utilise platforms such as Deliveroo and Just Eat. These platforms generate a considerable share of the shop’s profits, capitalising on the online food ordering trend that has soared in recent years. The order is received by the kitchen, prepared, then delivered either by the in house driver or the third party platform.

Dark kitchens are a great way to run a food business without having to worry about premises space or front-of-house seated service.

What are the Benefits of Investing in a Dark Kitchen Food Franchise or Business Opportunity?

Choosing between starting up a new food business and a franchise is often challenging. With starting up a new food business idea, you carry a lot more risk compared to investing in a franchise. Deciding to take the risk of starting up a new business comes with the advantage of having complete brand control. But starting from square one, your brand is new, unlike a franchised business, which already has brand recognition, reputation and presence. Let’s take Papa Johns as an example. A new franchisee unit opens, considerable marketing of an existing customer base helps drive influence and greater awareness in the new territory. This is true of any franchise.

The biggest benefit of investing in a food franchise, be it a dark kitchen, kiosk, restaurant or mobile food business, is the established business model. The existing framework funnels down into many other benefits such as:

• Support and training – where with a new business you’d have to learn the ropes first hand, investing in a franchise gives you that knowledge immediately. The scalable business model means franchises can be replicated with minimal fault.
• Established brand – Customers are already aware of franchise brands. Whether the franchise only has one franchisee, or one hundred, there will still be customers out there that know the brand. Loyalty gets passed down to each new franchisee. That reputational boost gives franchisees a strong head-start contrasted with new startups.
• Proven business model – Franchises work because they are designed to be scaled with minimal variation, minimal differences which could otherwise affect the chances of success. Franchised businesses are designed to be run with the same brand, same products and same welcome that customers would expect to find in any branch they visit.

Franchises have a higher success rate compared to starting up alone. Have you considered a franchise for your next business venture?

Become a Business Owner via Franchising UK

New franchise brands are emerging in the UK all the time. There are already over 1,000 active franchised brands in the UK, including many popular UK food franchises like Miss Millies and Gourmet Sushi.

With a wealth of business owner support out there, from FSB to the British Franchise Association, and of course your franchisor’s guidance. Explore franchising and see the benefits of franchising over a new start. Could you be a business owner this time next year?