Business
May 27, 2022 - 2 min

Dark Kitchens: One of the trends left by the pandemic

The boom of "restaurants" without chairs, tables or waiters

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A few weeks ago, we discussed Dark Stores, and today we will talk about another similar major trend: Dark Kitchens.

According to Euromonitor, dark kitchens could generate a market worth over $1 billion worldwide by 2030. In Chile, Colombia, Argentina, Brazil, and Mexico, there are more than 400 kitchens of this type.

After the pandemic, one of the sectors most affected was that of restaurants and bars, due to the sanctions and quarantines imposed worldwide, which forced them to close to the public for long periods of time. But this is where a new business model, known as Dark Kitchens. This concept refers to restaurants that focus only on delivery, so all they need is a kitchen, which usually ranges from 12 m² to 20 m². In other words, restaurants without tables, chairs, or waiters. This has led to significant savings in staffing and rent

At the same time, it has encouraged the emergence of new competition, because the implementation of a new brand is more economical than with the traditional business model. Generally, all that is needed to get started is basic cooking equipment. According to various entrepreneurs who have ventured into these areas, the equipment for these kitchens costs around 6 million pesos, and the cost increases depending on the degree of specialization.

Today in Chile, there are several companies that lease space for dark kitchens to entrepreneurs and/or large restaurant chains. These complexes of several ghost kitchens are called Hubs. Some of the companies that provide these services in Chile are Kitchen Center, Pop Kitchen, Oficina Central, and Kitchen And Go, among others.

The main advantages of a ghost kitchen compared to a traditional restaurant are:

  1. Lower rental costs.
  2. Fewer staff.
  3. Better profitability per square meter.
  4. Lower investment costs.
  5. Delivery in less time (25 minutes versus 40 minutes).

Rents are around 2.4 UF/m2 – 2.6 UF/m2, so with a monthly rent of 36 UF, plus 6 million pesos, you can start a business of this type.

 

AGF Team