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Here's how you launch a profitable dark kitchen.

Launching a dark kitchen, also known as a ghost kitchen, is an innovative way to enter the food industry without the overhead of a traditional restaurant.

For chefs and entrepreneurs who are adept at culinary arts and want to capitalize on the burgeoning delivery market, a dark kitchen offers a unique opportunity to focus solely on food production.

In this blog post, we'll navigate you through the crucial stages of starting a dark kitchen, from the seed of an idea to the first order out the door.

How you should prepare to launch a dark kitchen

Market research and concept, choose a concept.

Choosing a concept is one of the first steps in opening a dark kitchen because it will determine the type of cuisine you'll offer, the operational model you'll adopt, and the target customer base you'll serve.

This decision will influence your menu design, ingredient sourcing, packaging, delivery logistics, and marketing approach. A well-defined concept can help your dark kitchen stand out in a crowded delivery market and attract a loyal customer following.

Think of your concept as the theme of your culinary story, setting the stage for the dishes you create and the experience you deliver to your customers, even if they never step foot in your kitchen.

To assist you in making an informed choice, we have compiled a summary of the most popular concepts for dark kitchens in the table below.

Pick an audience

When launching a dark kitchen, understanding your target audience is crucial for determining your culinary concept and menu offerings.

For instance, if you aim to cater to busy professionals, your dark kitchen might focus on healthy, high-quality meals that can be quickly delivered to their workplace or home. You would likely prioritize a location with access to business districts and residential areas with a high concentration of working professionals.

Conversely, if your target audience is college students, you might offer more affordable, comfort food options that are perfect for late-night study sessions or group orders. In this case, being close to university campuses and student housing would be beneficial.

Choosing your audience first is essential because it shapes every aspect of your dark kitchen - from the food you serve to your packaging and delivery methods. It's similar to selecting a present; you consider the recipient's preferences before deciding on the gift to ensure they'll appreciate it.

Additionally, knowing your audience enables you to communicate with them more effectively. If you're aware of who you're trying to reach, you can tailor your marketing strategies to connect with them where they're most likely to engage, such as social media platforms popular among your target demographic.

In our business plan for a dark kitchen , we've identified various customer segments that could be pertinent to your venture.

To help you envision potential audiences for your dark kitchen, we've compiled a few typical examples in the table below.

Get familiar with the industry trends

When launching a dark kitchen, it's crucial to stay abreast of the latest consumer trends to ensure your delivery-only restaurant concept resonates with your target audience.

Consumer preferences are constantly evolving, and by aligning your dark kitchen with these trends, you can attract a diverse clientele looking for the newest dining experiences. Additionally, by offering trending dishes or services, your dark kitchen can differentiate itself from competitors who may be slower to adapt to market changes.

Actually, we update our business plan for a dark kitchen biannually to include the latest emerging trends. We believe this will assist you in creating a more prosperous dark kitchen enterprise.

For instance, there's a surge in demand for plant-based and ethically sourced meals as consumers become more environmentally conscious and interested in animal welfare. Dark kitchens that provide such options can appeal to this growing market segment.

Moreover, we've observed that customers are increasingly seeking personalized meal options, from customizable bowls to build-your-own pizzas, allowing them to tailor their orders to their specific tastes and dietary restrictions.

As sustainability becomes a more pressing concern, practices such as using eco-friendly packaging and reducing food waste are becoming critical to consumers. Dark kitchens that prioritize these practices can enhance their brand image and customer loyalty.

In the digital age, having a strong online presence with high-quality food photography and engaging content can significantly increase your dark kitchen's visibility and appeal to the tech-savvy generation.

We have compiled a list of more trends in the table below.

However, there are also some declining trends.

As consumers become more health and environmentally conscious, there's a decline in the popularity of meals that are high in processed ingredients and artificial additives.

Additionally, with the rise of food delivery apps, traditional dine-in experiences are becoming less common, impacting the demand for conventional restaurant settings.

Finally, with increasing awareness of sustainability, the use of non-biodegradable packaging and single-use plastics in food delivery is becoming less acceptable to consumers.

Choosing the ideal location

Choosing the optimal location for your dark kitchen is a strategic decision that can significantly impact its operational efficiency and profitability. Here's how to approach this critical task.

Firstly, analyze the local demographics and delivery radius. A dark kitchen thrives on delivery orders, so it's essential to be situated within a densely populated area or near neighborhoods with a high demand for food delivery services. Consider the age, lifestyle, and spending habits of the local population to ensure your menu aligns with their preferences.

Accessibility for delivery drivers is key. Your dark kitchen should be easily reachable by various modes of transportation to ensure quick and efficient food delivery. Proximity to major roads and highways can reduce delivery times and costs.

While competition is less of a concern for dark kitchens compared to traditional restaurants, understanding the local market is still important. Identify gaps in the food delivery market that your kitchen can fill. Offering unique or underserved cuisines can set you apart from the competition.

Rent costs are a significant factor for dark kitchens. Since you don't need a prime retail location with high foot traffic, you can opt for more affordable areas that still meet your delivery logistics needs. Ensure the rent aligns with your projected earnings and delivery volume.

Negotiating lease terms that favor your business model is crucial. This might include flexible lease durations, options for expansion, or favorable rent conditions that account for the initial growth phase of your dark kitchen.

Consider the growth potential of the area. Is the neighborhood experiencing an influx of residents or businesses that could increase demand for food delivery services? Being in a growing area can provide a steady increase in potential customers.

While parking and public transportation are less critical for customer access, they are important for delivery drivers. A location with ample parking and easy access to public transit can help attract and retain delivery personnel.

Utilize market research tools to identify the best areas for your dark kitchen. These tools can help pinpoint neighborhoods with high delivery service usage and the right demographic for your menu offerings.

The choice between an industrial area and a more central urban location depends on your delivery radius and the concentration of potential customers. Industrial areas might offer lower rents and larger spaces, while urban locations can provide quicker access to a larger customer base.

Being situated near business districts or residential complexes can ensure a consistent demand, especially if your dark kitchen offers a variety of cuisines that cater to the tastes of a diverse clientele.

It's essential to understand local zoning laws and health regulations to ensure your dark kitchen complies with all legal requirements. This will help avoid costly delays or modifications to your operations.

Finally, evaluate the long-term viability of the location. Consider upcoming developments that could impact your business, such as new residential projects that could increase demand or infrastructure changes that might affect delivery times.

Startup budget and expenses

Calculate how much you need to start.

On average, the initial capital needed to open a dark kitchen can vary significantly, ranging from $20,000 to $80,000 for a basic setup to $100,000 to $300,000 for a more sophisticated operation with advanced technology and multiple cooking stations .

If you want to know the exact budget you will need for your own dark kitchen and also get a full detailed list of expenses, you can use the financial plan we have made, tailored to dark kitchens . This excel file is designed to be very user-friendly and will provide you with an instant and comprehensive analysis of your future project.

The budget can vary the most due to the location of the dark kitchen. While you don't need a prime retail location, the proximity to delivery service areas and the cost of delivery logistics can impact startup expenses.

The size of the dark kitchen also impacts the initial investment. A larger kitchen allows for more orders to be processed simultaneously but also increases rent and requires more equipment and staff, leading to higher operational costs.

The quality of kitchen equipment is another significant factor. Investing in high-quality, commercial-grade equipment can be costly but may improve efficiency and food quality. On the other hand, starting with used or lower-quality equipment can lower initial costs but might result in more frequent repairs or replacements.

If the available capital is limited, it's still possible to open a dark kitchen, but careful planning and smart budgeting are essential. The very minimum budget could be around $20,000 to $40,000 if you opt for a modest space, purchase second-hand equipment, and handle much of the work yourself. This approach requires a focused menu and efficient operations to keep costs down.

To maximize a limited budget, consider the following tips.

Identify all your expenses

The most significant expenses you will encounter when opening a dark kitchen are related to your kitchen setup and operational costs.

Key equipment for a dark kitchen includes commercial ranges, grills, deep fryers, refrigeration units, and cooking utensils. The cost for these can range from $15,000 to $150,000, depending on whether you opt for new or second-hand equipment. High-quality or new equipment will be at the higher end of this spectrum, but you can cut costs by purchasing gently used items. The cooking range and refrigeration are particularly crucial as they are central to food preparation and storage.

Licenses and permits are essential for operating legally. The costs can vary widely by location but generally fall between several hundred to a few thousand dollars. This includes health department permits, food handler's licenses, and potentially more specialized permits depending on your location and the type of food you serve.

Insurance is indispensable to safeguard your business against various risks, including liability, property damage, and employee-related risks. Necessary policies include general liability, property insurance, and workers' compensation if you have staff. Annual premiums can range from $3,000 to $10,000 or more, based on the level of coverage and the scale of your operations.

Marketing and advertising are crucial, even for a dark kitchen that may not rely on walk-in traffic. Budgeting $2,000 to $10,000 for initial marketing efforts is sensible. This could cover digital marketing, partnerships with food delivery platforms, and branding. The amount can vary depending on your market and how aggressively you want to attract customers.

Investing in technology for order management, inventory tracking, and accounting is also important. Costs can range from $1,500 to $15,000, with more sophisticated systems at the higher end. Many software solutions offer subscription-based models with ongoing monthly fees.

Training costs for your kitchen staff are essential to ensure food quality and safety. Allocating $1,000 to $5,000 for initial training and ongoing professional development can help maintain high standards. This also includes any costs for certifications that may be required for your staff.

Supply chain management for ingredients and kitchen essentials is a continuous expense. Initial inventory may cost between $3,000 to $15,000. Establishing good relationships with suppliers and considering bulk purchases can help in cost management.

Lastly, it's wise to have a financial cushion for unexpected expenses. A reserve of at least three to six months' worth of operating expenses is recommended to cover unforeseen issues like equipment breakdowns or fluctuations in cash flow.

Below is a summary table for a quick overview. For a detailed breakdown of expenses, please refer to our financial plan for dark kitchens .

Business plan and financing

Make a solid business plan.

Embarking on the journey of opening a dark kitchen , also known as a ghost kitchen, comes with its own set of unique challenges and opportunities. A business plan is just as essential in this venture as it is in any other.

Why is a business plan so important for a dark kitchen? It acts as a strategic guide for your business, detailing your vision, objectives, and the methods you'll employ to achieve success. It's also a critical tool for securing funding, as it shows potential investors or lenders that you have a well-thought-out approach to making your dark kitchen profitable.

A comprehensive dark kitchen business plan should include several key components: an industry analysis, financial projections, and an operational strategy. The industry analysis will help you understand the food delivery market, identify your target customer base, and analyze competitors. This research should delve into the growing trends in food delivery services, the types of cuisine that are in demand, and the logistics of operating a delivery-only kitchen.

Financial planning is crucial. This section should detail your expected revenue streams, which might include partnerships with delivery apps, direct online orders, and catering services. It should also cover the cost of kitchen equipment, ingredients, packaging, labor, and any other operational expenses. Financial projections, such as profit and loss statements, cash flow analysis, and break-even points, will provide a clear picture of your dark kitchen's financial trajectory. You can find a detailed example in our financial plan for a dark kitchen .

While there are similarities between a dark kitchen and other food service businesses, certain elements will be more pronounced. For instance, a dark kitchen will focus heavily on efficient kitchen design to maximize productivity, food delivery logistics, and digital marketing strategies. Since there's no dine-in option, the location is less about foot traffic and more about accessibility for delivery services and proximity to your target market.

To create a successful dark kitchen business plan, thorough research and realistic financial estimates are vital. Engage with potential customers to gauge their interest in your menu offerings and delivery services. Also, consider how you can scale your operations and adapt your menu to meet changing consumer demands.

For a dark kitchen, building a strong online presence and brand identity is crucial, as your interactions with customers will primarily be virtual. Your marketing strategy should leverage social media, search engine optimization, and partnerships with food delivery platforms to increase visibility and drive sales.

Success in a dark kitchen business doesn't just come from great food; it's also about meticulous planning, understanding your market, managing finances effectively, and executing a seamless operational strategy.

Remember, a business plan is a dynamic document that should evolve with your dark kitchen. Regularly revisiting and updating your plan will help you stay on track and adapt to the ever-changing food delivery landscape.

Get financed

Concerned about the financial hurdles of starting your own dark kitchen? There's no need to fret—there are numerous financing options available to help you get your venture off the ground.

Financing for a dark kitchen can come from a variety of sources, including equity investment from business partners or angel investors, loans from banks or alternative lenders, and even government grants designed to support the food industry or small businesses.

Each financing method comes with its own set of benefits and considerations.

Equity investment means bringing on investors who will provide capital in exchange for a share of ownership in your dark kitchen. This can be a great way to secure a large amount of money without the immediate pressure of repayments. However, it also means you'll be sharing your profits and decision-making power with others.

For a dark kitchen, which often requires less capital for physical space compared to traditional restaurants, equity investment might be used to fund state-of-the-art kitchen equipment, technology for order management, or initial marketing campaigns. Convincing investors to come on board will require a compelling business plan that showcases the scalability and potential profitability of the dark kitchen model.

Debt financing through business loans is another option. This route allows you to maintain full control over your business but requires regular repayments with interest. Loans can be used for a variety of purposes, such as leasing commercial kitchen space, purchasing cooking appliances, or covering initial ingredient costs.

Lenders will typically look for a down payment or collateral, which might range from 15% to 25% of the loan amount. It's crucial to ensure that the loan terms are manageable and that your dark kitchen's projected income can handle the repayments while still allowing for operational costs and growth.

Grants and subsidies, though not as readily available, can provide financial support without the need for repayment. These funds are often earmarked for businesses that meet certain criteria, such as promoting sustainability or economic development in a particular area.

While a dark kitchen might not rely on grants as a primary funding source, they can be a valuable supplement for specific initiatives, like adopting eco-friendly packaging or creating jobs in a local community.

To attract financing, whether from lenders or investors, it's essential to present a detailed business plan that includes thorough market research, a clear concept, financial projections, and a marketing strategy. Your plan should highlight the unique advantages of a dark kitchen, such as lower overhead costs, flexibility, and the ability to quickly adapt to changing food trends.

Investors and lenders will evaluate your dark kitchen based on criteria like your creditworthiness, industry experience, collateral, and the robustness of your business plan. They'll be particularly interested in your financial projections , assessing whether your business can generate sufficient revenue to cover expenses, repay debts, and turn a profit.

Here's a summary table of the various financing options mentioned for opening a dark kitchen, along with their advantages, considerations, and potential uses:

Legal and administrative setup

Permits and licenses.

Launching a dark kitchen, also known as a ghost kitchen or virtual kitchen, involves a unique set of regulations and requirements tailored to its business model, which focuses on food delivery and takeout rather than dine-in service. Understanding and complying with these regulations is crucial for the smooth operation of your dark kitchen.

The specific permits, licenses, health department regulations, inspection schedules, consequences of non-compliance, and insurance policies you'll need can differ based on your location, but there are common standards that are widely applicable.

Firstly, you must secure the necessary business permits and licenses.

This generally includes a business license from your local municipality, and a sales tax permit if your state imposes sales tax. Since dark kitchens do not have dine-in services, you may not need a traditional food establishment permit, but you will still require a permit that acknowledges your operation as a food preparation and delivery entity.

It's imperative to consult with your local government to determine the exact requirements for your area.

When it comes to health department regulations, dark kitchens must adhere to food safety and sanitation protocols to prevent foodborne illnesses.

This encompasses proper food handling, storage, and preparation methods, maintaining a clean facility, and ongoing employee training in food safety. Health department inspections are carried out to ensure these standards are met. The frequency of inspections can vary, but they are often conducted at least biannually, or more frequently if there have been complaints or past issues. A pre-operational inspection might also be mandated before the dark kitchen begins operations.

Failing to comply with health department regulations can lead to penalties such as fines, or in extreme cases, a temporary or permanent shutdown of the business. Legal action is also a possibility. Therefore, it is vital to take these regulations seriously and ensure your dark kitchen meets all health and safety requirements.

Insurance is another essential component in safeguarding your dark kitchen business. At the very least, you'll need general liability insurance to cover any accidents or injuries that might occur as part of your operations.

Since a dark kitchen relies heavily on delivery, obtaining commercial auto insurance for your delivery vehicles or ensuring that your delivery personnel have appropriate insurance is crucial. Property insurance is important to protect your kitchen equipment and premises from damage or theft. If you employ staff, workers' compensation insurance is typically mandatory by law to cover any work-related injuries or illnesses.

Furthermore, product liability insurance is advisable, as it can protect your business in the event that your food products cause harm to customers.

By carefully navigating these regulations and securing the right insurance, you can establish a compliant and protected dark kitchen business ready to serve the growing market of food delivery and takeout customers.

Business Structure

The three common structures for opening a dark kitchen are LLC (Limited Liability Company), partnership, and sole proprietorship. Each has their unique features and implications for your business.

Please note that we are not legal experts (we specialize in business and financial planning) and that your choice should be based on how much risk you're willing to accept, how you prefer to handle taxes, and your plans for growing and possibly selling your dark kitchen.

In simple terms, a sole proprietorship is simple and straightforward but carries personal liability. A partnership allows for shared responsibility but requires clear agreements to manage risks. An LLC offers a balance of protection and flexibility, making it a strong option for many businesses looking to scale.

Consider your long-term goals, and consult with a financial advisor or attorney to make the best choice for your dark kitchen.

We’ll make it easier for you, here is a summary table.

Getting started to launch a dark kitchen

Offer development, design and lay out.

Designing and laying out your dark kitchen for operational efficiency and an optimal delivery experience requires meticulous planning and strategic execution.

Let's explore how you can accomplish this, focusing on workflow optimization, balancing equipment needs with budget, and ensuring health and safety.

Firstly, optimizing workflow is crucial.

Your dark kitchen's design should facilitate a seamless flow from the receiving area for ingredients to the storage, preparation, cooking stations, and finally to the packaging and dispatch area. This flow should be logical, minimizing cross-traffic and ensuring a smooth transition from one task to the next. Position your most frequently used equipment in a central location to reduce movement and increase efficiency for your staff.

This setup not only maximizes productivity but also helps to minimize the time it takes to prepare and dispatch orders, which is critical in a delivery-focused business.

Regarding the design to facilitate this workflow, consider the compactness and ergonomics of the space.

Efficient use of vertical space, clear signage, and a strategic arrangement of the kitchen will promote easy movement and reduce fatigue. The preparation area should be clearly delineated from the cooking and packaging zones to prevent bottlenecks and enhance safety. If your dark kitchen caters to multiple cuisines or brands, consider segmenting the kitchen into different sections to streamline operations.

Balancing the need for high-quality equipment with budget constraints is a challenge many face.

Start by prioritizing essential equipment that directly impacts the efficiency of your food production, such as commercial ranges, grills, and high-speed ovens. These are worth investing in because they are the heart of your dark kitchen's operations. For other items, consider leasing equipment or buying gently used or refurbished items from reputable suppliers to save money without significantly compromising on performance.

Additionally, plan for equipment that offers versatility and efficiency, like multi-purpose cookers or advanced food processors, to get the most value for your investment.

Health and safety in the dark kitchen layout are non-negotiable. Your design must include zones designated for different tasks to prevent cross-contamination. For example, separate areas for raw material handling, food preparation, cooking, and packaging ensure that each step of the process is contained and controlled. Install handwashing stations at key points, especially near the food preparation and dispatch areas, to promote regular hand hygiene among staff.

Specific protocols for food handling, storage, and preparation are crucial for safety and compliance. Implement a system that ensures all ingredients are stored at the correct temperatures and conditions, with raw materials kept separate from ready-to-eat products.

Train your staff thoroughly in food safety practices, emphasizing the importance of handwashing, wearing gloves when appropriate, and avoiding cross-contamination between raw and cooked foods.

Regularly review and update these protocols to comply with local health regulations and best practices, and to ensure the safety and satisfaction of your customers.

Craft your offer

Your menu and the efficiency of your operations will be the cornerstone of your dark kitchen's success (or the reason for its struggles).

To begin, understand the dining habits and preferences of your target market through methods like online surveys, social media engagement, and data analysis of current food delivery trends. Also, take a look at what other successful dark kitchens are doing to attract customers.

With a solid grasp of your target market's desires, you can start to develop a menu that is not only appealing but also optimized for delivery. Remember, your food needs to travel well and still arrive in excellent condition.

Using locally sourced and seasonal ingredients can be a great strategy for a dark kitchen as well. This practice supports local suppliers, reduces your environmental impact, and ensures that your food is fresh and of the highest quality. Forge relationships with local vendors to know what will be available when, allowing you to plan your menu around the freshest ingredients. Seasonal menus can also generate excitement and anticipation among your customers, who will look forward to new and returning dishes.

To differentiate your dark kitchen in a crowded market, focus on creating unique and high-quality dishes.

This could mean developing exclusive recipes that are only available through your service, or offering cuisine that caters to niche markets, such as keto, paleo, or plant-based diets. Sharing the story of your dishes, like the source of your ingredients or the inspiration for your recipes, can also add a layer of interest and authenticity.

Maintaining consistency and excellence in your food is crucial, which involves setting strict standards and workflows.

Implement detailed preparation guidelines, invest in training for your kitchen staff, and conduct regular quality assessments. Consistency is vital for customer trust, as they will come to expect the same high quality with every order. Use top-notch ingredients and equipment, and continuously refine your dishes until they meet your high standards.

Additionally, leveraging customer feedback is vital for the ongoing enhancement of your dark kitchen's menu. Establish feedback mechanisms, such as online reviews, direct customer surveys, and social media interactions, to gauge what your customers enjoy and identify areas for improvement.

Be receptive to constructive criticism and ready to adapt based on customer insights. This not only aids in perfecting your menu but also demonstrates to your customers that their opinions are valued, encouraging loyalty and repeat patronage.

Determinate the right pricing

When launching a dark kitchen, it's crucial to establish a pricing strategy that balances profitability with customer satisfaction. Here's a step-by-step guide to setting your prices effectively.

Firstly, you must understand your operational costs, which include ingredients, labor, utilities, packaging, and delivery expenses. This will ensure that your prices not only cover these costs but also contribute to your dark kitchen's profitability.

Next, analyze the competition and the market to gauge the going rates for similar delivery-only food services. While you don't need to mirror these prices, this research provides a reference point for your own pricing.

Knowing your target audience's price sensitivity is essential. Gather feedback through customer interactions, surveys, or by experimenting with different price points. Monitor how changes in pricing affect order volume to find the sweet spot that keeps customers ordering without feeling overcharged.

Psychological pricing can also be a powerful tool. For instance, setting a price of $9.99 instead of $10 can make a meal seem more affordable, even if the difference is slight. This tactic can be particularly effective for popular menu items or combo deals.

However, you should use psychological pricing sparingly to maintain the perceived value of your offerings.

Perceived value is just as important for a dark kitchen as it is for a traditional eatery. This can be enhanced by the quality of your food, the efficiency of your delivery service, and your brand's reputation. Premium ingredients, reliable delivery, and strong branding can justify higher prices because customers feel they are receiving better value for their money.

Consider implementing dynamic pricing strategies, such as offering discounts during typically slow periods or charging more during peak hours. For example, you might offer a lunchtime special to boost midday orders or increase prices slightly on Friday nights when demand is higher.

When introducing new menu items, consider using introductory pricing, such as limited-time discounts or meal combos, to entice customers to try them. Once these items gain popularity, you can reassess their prices based on their cost and popularity.

For orders placed online, take into account the different cost structures compared to traditional dining. You may need to factor in delivery fees, which could be included in the price or listed separately. Offering online-only specials can also drive traffic to your digital ordering platforms.

Finally, be cautious with discounting. While promotions can increase order volume and attract new customers, too much discounting can harm your brand's image and lead to a perception of lower quality. Use discounts strategically, perhaps to move excess inventory or to celebrate a special occasion, without setting a precedent for constant price reductions.

By carefully considering these factors, you can set a pricing strategy for your dark kitchen that encourages customer loyalty, covers costs, and ensures a healthy bottom line.

Manage relationships with your suppliers

Poor relationships with suppliers could jeopardize your dark kitchen operation in no time.

On the contrary, nurturing strong partnerships with suppliers will ensure a consistent supply of top-notch ingredients, which is crucial for a dark kitchen that relies on delivery and takeout services.

Engage in regular communication, make prompt payments, and show genuine appreciation for their products and services to build loyalty and dependability. Be clear about your expectations and requirements, and if possible, visit their facilities. This will give you insight into their production and logistical challenges, which can help you collaborate more effectively.

Consider negotiating long-term contracts for essential ingredients to lock in favorable prices and secure your supply chain. However, it's also wise to have a roster of alternative suppliers to protect against potential shortages or disruptions.

For a dark kitchen, efficient inventory management is critical, especially for perishable items. Employing the First-In, First-Out (FIFO) method ensures that the oldest stock is used first, minimizing waste. Keep a close eye on inventory levels to tailor your orders to current demand, preventing excess stock and reducing spoilage. A just-in-time (JIT) inventory system can also be beneficial, where ingredients are ordered just as they are needed, but this requires accurate demand forecasting.

Technology can greatly enhance inventory management and cut down on waste in a dark kitchen.

Using an inventory management system that syncs with your point-of-sale (POS) system allows for real-time monitoring of stock and sales data. This tech can aid in more precise demand predictions, streamline the ordering process, and highlight trends that can guide menu development and marketing efforts.

Moreover, digital tools can improve communication with suppliers, leading to more effective order adjustments and cooperation.

As you scale your dark kitchen, you'll face challenges such as ensuring consistency in your dishes, managing rising costs, and maintaining quality control. Tackle these issues by standardizing recipes and procedures, providing comprehensive staff training, and investing in equipment that boosts efficiency without sacrificing the quality of your offerings.

Scaling up also means purchasing more ingredients, so negotiate with suppliers for volume discounts without compromising on the quality of your ingredients. As production ramps up, quality control becomes increasingly important, necessitating strict adherence to standards and more frequent checks.

Effective cost control measures are vital and involve examining every aspect of sourcing and utilizing ingredients and supplies for your dark kitchen. Regularly reassess and negotiate with suppliers to ensure you're receiving the best value without sacrificing quality.

Also, explore alternative ingredients that may offer cost benefits or are more affordable seasonally. Employ technology to track and analyze expenses, waste, and inventory levels to pinpoint opportunities for improvement. Reducing waste not only lowers costs but also supports sustainable practices, which can attract eco-conscious customers.

Hire the right people

When launching a dark kitchen, also known as a ghost kitchen, you should focus on a lean operation, especially if you're working with a limited budget. A dark kitchen primarily serves delivery or takeout customers and does not have a dine-in space, which means your staffing needs will be different from a traditional restaurant or bakery.

At the core, your dark kitchen will require a team that can handle food preparation, order management, and overall operations.

For food preparation, you'll need experienced cooks and chefs who can efficiently prepare dishes that maintain quality during delivery. A head chef or kitchen manager is crucial to oversee the kitchen staff, manage the menu, and ensure consistency and quality in every order.

For order management, you'll need staff who can handle order intake from various online platforms, coordinate with delivery services, and ensure that orders are correctly packaged and sent out in a timely manner. This role is vital for maintaining customer satisfaction and streamlining the delivery process.

An operations manager is also essential to oversee the entire operation, manage staff, and handle administrative duties such as inventory management, ordering supplies, and ensuring compliance with health and safety regulations.

Initially, you may not need roles such as marketing specialists or dedicated customer service representatives, as these can be outsourced or handled by existing staff members.

When hiring, prioritize candidates with experience in high-volume kitchens, a passion for cooking, and the ability to work quickly and efficiently. For kitchen staff, look for formal culinary training and experience in a similar setting. For order management, seek individuals with strong organizational skills and familiarity with online ordering systems. Operations managers should have experience in food service management, a strong understanding of business operations, and leadership qualities.

Consider practical assessments during the hiring process, such as cooking trials for chefs or scenario-based tasks for order management staff, to ensure they can meet the demands of a fast-paced delivery kitchen.

Look for candidates who are adaptable and thrive in a dynamic environment, as the dark kitchen model often requires quick thinking and flexibility.

Finding the right candidates can be a challenge. Utilize culinary schools, professional networks, and social media platforms to reach potential hires. Networking within the food service community and attending industry job fairs can also be beneficial. Offering internships or part-time positions can help you connect with emerging talent.

Here is a summary table of the different job positions for your dark kitchen, and the average gross salary in USD.

Running the operations of your dark kitchen project

Daily operations.

Running a dark kitchen, also known as a ghost kitchen, can be a complex operation, but with the right systems and processes in place, it can run like a well-oiled machine.

Firstly, a robust Point of Sale (POS) system tailored for dark kitchens is essential. This system should integrate seamlessly with online ordering platforms since dark kitchens primarily serve delivery and takeout customers.

Choose a POS that can handle multiple delivery service integrations, manage orders efficiently, and maintain a database of customer preferences and order history. Real-time sales tracking through this system can help you adjust your menu and operations on the fly to meet demand.

For inventory management, you need a system that can keep up with the fast pace of a dark kitchen. It should track your ingredients and supplies in real-time, with alerts for low stock levels and analytics for inventory trends. This precision helps in reducing waste and ensuring you have the right ingredients when you need them, based on sales data and predictive analytics.

Advanced inventory systems may also include vendor management features, allowing you to streamline your ordering process and maintain a centralized record of supplier interactions.

Supplier relationships are just as important for a dark kitchen as they are for any food service business. Establish clear communication channels and set expectations for delivery schedules, product quality, and payment terms. Cultivate good relationships to potentially secure better pricing or terms, and always have alternative suppliers as a contingency plan.

Employee satisfaction in a dark kitchen is crucial for maintaining high-quality food and service. Provide regular training, set clear goals and expectations, and offer constructive feedback. Recognize and reward dedication and achievements, and ensure that work schedules respect your team's work-life balance.

Even though customers may not visit your dark kitchen, their experience with your food and delivery service is paramount. Train your delivery staff to be prompt, courteous, and handle orders with care. Packaging should maintain food quality and temperature, and branding should be consistent and appealing.

Customer service policies for a dark kitchen should include a satisfaction guarantee, transparent refund policies, and a system for collecting and responding to customer feedback. Make it simple for customers to reach out through your website, app, or social media channels.

Address customer feedback and complaints with empathy and efficiency. Listen to their concerns, apologize if necessary, and offer solutions such as refunds, replacements, or discounts on future orders. Use negative feedback as a chance to refine your menu, delivery, or customer service, potentially converting dissatisfied customers into loyal patrons.

By implementing these strategies, your dark kitchen can achieve operational excellence, leading to satisfied customers and a thriving business.

Revenues and Margins

Know how much you can make.

Understanding the financial workings of a dark kitchen is crucial for its success.

We have an in-depth article on the profitability of dark kitchens that provides extensive details. Below, we'll summarize some key points.

One important metric for dark kitchens is the average order value (AOV).

The AOV is the average amount a customer spends per order. This figure can vary greatly depending on the cuisine offered, pricing strategy, and customer demographics.

For example, a dark kitchen specializing in gourmet meals may have an AOV of between $40 and $60 , reflecting the premium nature of the food.

A dark kitchen that operates multiple brands under one roof might see a lower AOV per brand but could benefit from a higher cumulative AOV, possibly between $20 and $40 per brand.

Dark kitchens focusing on fast food or quick-service items might have a smaller AOV, perhaps between $15 and $25 , due to the lower cost of items and a focus on volume sales.

Revenue for dark kitchens can also vary widely. With a well-optimized operation and strong online presence, monthly revenues can range from $10,000 to over $50,000 , leading to annual revenues of $120,000 to $600,000 or more.

Startup dark kitchens may initially see lower revenues as they establish their presence and customer base, potentially earning less than $10,000 per month in the beginning.

However, established dark kitchens with a solid reputation and customer loyalty can achieve higher and more consistent revenues over time.

Dark kitchens that effectively utilize data analytics and customer feedback to refine their menus and operations can potentially exceed $500,000 in annual revenue .

you should note that dark kitchens have multiple revenue streams beyond just selling meals. Here's a table outlining various potential revenue streams for a dark kitchen.

These revenue streams can help diversify a dark kitchen's income and provide stability beyond the core business of selling meals.

Understand your margins

As with any food service business, understanding the financial health of a dark kitchen is crucial for its success. Revenue is just the starting point; it's the margins that truly tell the story of profitability.

Let's delve into the gross and net margins, which are key indicators of a dark kitchen's financial performance.

To calculate your own margins and get a precise figure for your potential profit, you can adjust the assumptions in our financial model designed for a dark kitchen .

The typical range of gross margins for dark kitchens can vary, but they generally fall between 60% to 80%. This is due to the lower overhead costs compared to traditional restaurants.

Gross margin is calculated by subtracting the cost of goods sold (COGS), which includes the direct costs associated with the production of the meals sold, such as ingredients and direct labor, from the revenue generated from the sales of those meals. This figure is then divided by the revenue and multiplied by 100 to get a percentage.

Net margins consider not only COGS but also all other expenses a dark kitchen incurs, such as rent for the kitchen space, utilities, administrative expenses, marketing, and taxes. Net margin is the figure obtained by subtracting all operating expenses from the gross profit.

Net margins offer a more complete understanding of a dark kitchen's profitability and are typically lower than gross margins. On average, they might range from 10% to 15%, reflecting the profitability after all costs are considered.

Different types of dark kitchens—such as independent, chain-affiliated, or virtual brands—can have varying profit margins due to differences in their business models, scale of operations, and target markets. Below is a table to illustrate these differences.

Margins in a dark kitchen are influenced by factors such as menu complexity, pricing strategy, and operational efficiency.

A streamlined menu can reduce costs and waste, but it must also meet customer demand to ensure sales volume. Pricing strategy is critical; prices must be set to cover costs and yield a profit while remaining attractive to customers. Operational efficiency can lead to cost savings, especially in a model that typically benefits from lower overhead costs.

Ongoing expenses that impact dark kitchen margins include ingredient costs, labor, rent for kitchen space, utilities, and marketing. Ingredient costs can be volatile, affecting gross margins. Labor remains a significant expense, and rent can be a considerable cost depending on location. Utilities and marketing are also important factors to consider.

Dark kitchens focusing on niche markets, such as vegan or ethnic cuisines, may experience different margin dynamics compared to those with a more general offering.

While niche dark kitchens can command higher prices, they may also encounter higher production costs and a potentially smaller customer base, which can affect overall margins.

External factors such as economic conditions, consumer trends, and competition also play a role in the profitability of dark kitchens. Adapting to these factors and evolving the business model accordingly is essential for maintaining healthy margins.

Dark kitchens can tackle the challenge of maintaining margins by optimizing their menu, managing costs effectively, leveraging technology for efficiency, and continuously analyzing their financial performance. Regular financial tracking and analysis, including gross and net margins, is crucial (and you can do it all with our financial model specifically for dark kitchens ).

Implement a strong marketing strategy

Marketing for a dark kitchen, also known as a ghost kitchen, doesn't have to be an intricate maze. We understand that you'll be focused on perfecting your delivery-only culinary creations and managing operations, so we'll keep our advice straightforward and practical, much like the marketing strategy we've detailed in our business plan for a dark kitchen .

Branding is just as essential for a dark kitchen as it is for any other food service business.

Your brand is the identity of your dark kitchen. It's not only your name or logo but the overall impression you leave on your customers. It should reflect the uniqueness of your cuisine, the efficiency of your service, and the values you uphold, such as high-quality ingredients or innovative dishes. A strong brand will differentiate you in the competitive delivery market and help cultivate a dedicated following.

When developing your marketing plan, begin by pinpointing your target audience. Who are they? What do they crave? Are they busy professionals seeking quick gourmet meals, families looking for variety, or health-conscious individuals desiring nutritious options? Knowing your audience informs your branding and how you connect with customers.

For promotion, digital marketing is a must for dark kitchens. Platforms like Instagram, Twitter, and Facebook are ideal for reaching out to potential customers. Use mouth-watering images and engaging stories to showcase your dishes.

Offer sneak peeks into your kitchen operations to create transparency and trust. Highlight the skill and care that go into preparing each order.

Encourage customer feedback and share positive reviews to build credibility. Educational content, like the origins of certain dishes or the benefits of your ingredients, can also engage your audience and position your dark kitchen as a knowledgeable leader in the food industry.

Effective content strategies for dark kitchens include highlighting the convenience and quality of your service, promoting limited-time offers, and emphasizing any unique or signature dishes. Collaborating with food bloggers or local influencers can also increase your visibility.

Not every marketing tactic will suit your dark kitchen. For instance, if your service area is concentrated in urban neighborhoods, targeting rural areas won't be efficient. Similarly, if you specialize in plant-based meals, focusing on meat-heavy dishes in your promotions won't align with your brand.

Even with a modest budget, there are clever ways to attract new customers.

Consider partnering with food delivery apps to reach a wider audience quickly. Offering exclusive deals through these platforms can drive initial trials.

Sampling might be tricky for a delivery-only business, but you can offer first-time order discounts or special promotions to entice trial.

Collaborating with local businesses or offices can help you tap into established customer bases.

Implementing a referral program can incentivize word-of-mouth marketing. Simple referral codes or discounts for both the referrer and the new customer can be highly effective.

Lastly, don't overlook the power of a loyalty program. Digital rewards for repeat orders can foster customer retention and increase the lifetime value of each patron.

Grow and expand

We want your dark kitchen to thrive in the competitive food delivery market. The insights provided here are designed to help you scale and expand your operations effectively.

Imagine your dark kitchen is already performing well, with a strong customer base and a profitable menu that's in high demand. Now is the time to consider strategies for growth and expansion.

There's always potential for greater success, and we're here to show you the path to reach it.

Also, please note that we have a 3-year development plan specifically for dark kitchens in our business plan template .

Successful dark kitchen operators often possess qualities such as agility, a keen sense of market trends, culinary expertise, and a strong focus on customer satisfaction. These attributes are essential as you navigate the complexities of scaling your business.

Before adding new items to your menu, assess the market demand, how well the new offerings will integrate with your existing menu, and the impact on your kitchen operations.

Conducting thorough market research is critical. By understanding customer preferences, tracking food delivery trends, and evaluating the performance of similar offerings in the market, you can make informed decisions that align with your dark kitchen's strengths and customer expectations.

To evaluate the success of your current operations, examine sales data, customer reviews, and the efficiency of your kitchen workflow. If your dark kitchen consistently hits sales targets, garners positive reviews, and operates smoothly, it might be time to think about expansion.

Expanding to new locations should be based on clear evidence of demand, a deep understanding of potential markets, and the financial stability of your existing operation.

Franchising can be a way to grow with less capital risk, tapping into the entrepreneurial drive of franchisees. It requires a recognizable brand, effective operational procedures, and the ability to support your franchisees. Opening company-owned kitchens allows for more control but demands more capital and hands-on management. The choice between these models depends on your business objectives, available resources, and preferred growth strategy.

Utilizing digital channels, such as online ordering platforms and delivery apps, can significantly increase your dark kitchen's reach and sales. An online presence enables you to serve customers beyond your immediate area, meeting the growing need for convenience.

This approach necessitates a grasp of digital marketing, delivery logistics, and ensuring food quality during transportation.

Branding is vital as it sets your dark kitchen apart in a crowded marketplace. A robust, consistent brand identity across all operations and platforms can foster customer loyalty and attract new patrons. Enhance your brand by ensuring every interaction reflects your dark kitchen's values, style, and culinary excellence.

Ensuring consistency across multiple kitchens is a challenge but is crucial for success. This can be managed through comprehensive operational guides, staff training, and quality control measures.

Regular visits and audits, coupled with a strong, cohesive culture, help maintain the high standards that made your original kitchen successful.

Financial indicators that you're ready for expansion include sustained profitability, robust cash flow, and consistently meeting or surpassing sales forecasts over a considerable time.

Having a scalable business model and the operational capacity to support growth are also essential factors.

Forming partnerships with other businesses and participating in local events can expose your dark kitchen to new customers and markets. These collaborations can lead to innovative offerings, community involvement, and increased brand exposure, all contributing to your growth.

Scaling up to meet growing demand requires logistical planning, such as investing in advanced kitchen equipment, optimizing inventory management, and potentially expanding your kitchen space. It's vital to ensure that your supply chain can sustain the increased volume without compromising on quality.

Ultimately, it's crucial that your expansion efforts remain aligned with your dark kitchen's core values and long-term objectives. Growth should not detract from the unique qualities that made your dark kitchen a success.

Regularly revisiting your business plan and core values can help ensure that your growth strategies stay in line with your vision, keeping the essence of your dark kitchen intact as it expands.

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ghost kitchen business plan template

When it comes to starting a ghost kitchen business, having a comprehensive and well-structured business plan is essential.A business plan serves as a roadmap for success, outlining your goals, strategies, and financial projections.

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When it comes to starting a ghost kitchen business, having a comprehensive and well-structured business plan is essential. A business plan serves as a roadmap for success, outlining your goals, strategies, and financial projections. To help you get started, here is a detailed guide on creating a ghost kitchen business plan.

Executive Summary

The executive summary is the first section of your business plan and provides an overview of your ghost kitchen concept. It should include a brief description of your business, target market, unique selling proposition, and financial highlights. The executive summary is typically written last but placed at the beginning of your business plan.

Market Analysis

Before diving into the details of your ghost kitchen business, it's crucial to conduct a thorough market analysis. This section should outline the size and growth of the food delivery industry, key trends, and competitive landscape. Identify your target market and highlight any gaps or opportunities you intend to capitalize on.

Competitive Analysis

Understanding your competition is vital in any business venture. Conduct a competitive analysis to identify other ghost kitchens or traditional restaurants offering delivery services in your area. Analyze their strengths, weaknesses, pricing strategies, and customer reviews. This information will help you differentiate your ghost kitchen and develop a competitive advantage.

Business Model

In this section, describe your ghost kitchen's business model. Explain how you will operate, including your menu offerings, pricing structure, and delivery methods. Outline your target customer demographics and how you plan to attract and retain them. Additionally, discuss any partnerships or collaborations that will enhance your business model.

Menu Development

The menu is the heart of your ghost kitchen business. Develop a compelling menu that appeals to your target market. Consider dietary restrictions, popular food trends, and local preferences. Ensure your menu is diverse, offers customization options, and includes both popular and unique dishes.

Operational Plan

Detail the day-to-day operations of your ghost kitchen. Address key aspects such as location selection, kitchen layout, equipment requirements, staffing needs, and food preparation processes. Include information on your suppliers, inventory management, and quality control measures. A well-defined operational plan ensures smooth and efficient functioning of your ghost kitchen.

Marketing and Sales Strategy

A successful ghost kitchen relies on effective marketing and sales strategies to attract customers. Outline your marketing plan, including online and offline channels, social media presence, influencer partnerships, and promotional campaigns. Discuss your pricing strategy, loyalty programs, and customer retention initiatives. Utilize digital marketing techniques to increase online visibility and engage with your target audience.

Delivery and Packaging

Delivery is a crucial element of a ghost kitchen business. Describe your delivery methods, whether you plan to use in-house delivery personnel or partner with third-party delivery services. Highlight your packaging strategy, ensuring that your food arrives fresh and visually appealing. Consider sustainable packaging options to align with environmentally conscious consumer preferences.

Customer Experience

Focus on providing an exceptional customer experience to drive repeat business and positive word-of-mouth. Discuss your customer service strategy, online ordering system, and feedback collection process. Consider implementing technology solutions such as mobile apps or online reservation systems to enhance convenience and efficiency for your customers.

Financial Projections

Developing realistic financial projections is crucial to assess the feasibility and profitability of your ghost kitchen business. Include projected revenue, expenses, and cash flow statements for the first three to five years. Consider factors such as food costs, labor expenses, marketing expenses, and overhead costs. Conduct a break-even analysis to determine the point at which your business becomes profitable.

Funding Requirements

If you require external funding to start or expand your ghost kitchen, clearly outline your funding requirements. Specify the amount of funding needed, its purpose, and the potential sources of funding, such as loans, investors, or crowdfunding. Provide a repayment plan and demonstrate how the investment will generate returns for the investors.

Creating a well-crafted business plan is the foundation for a successful ghost kitchen business. Remember to regularly review and update your business plan to adapt to changing market conditions and capture new opportunities. With a solid plan in place, you'll be well-prepared to launch and grow your ghost kitchen business.

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The Kitchen Takeover: Dark Kitchen Business Model & Benefits

What is a Dark Kitchen? The Basic Functions…

What is a dark kitchen? Also known as virtual, remote, commissary, ghost kitchens or cloud kitchens, unlike a traditional restaurant, a dark kitchen is a professional commercial kitchen that only produces food for sale on delivery platforms. Dark kitchen rentals contain facilities needed to prepare food but have no dining area or collection point for customers. The dark kitchen business model easily enables the creation and transitioning of a brand concept to be able to target specific demographics.

The Rise of Virtual Kitchens

Hundreds of dark kitchens are now operating all over the UK with the majority in London and online orders and deliveries via food delivery apps now account for around 30% of sales in the food industry .  

Restaurant owners are deciding to add a delivery brand to their existing brick-and-mortar restaurant kitchen. Taking advantage of an existing kitchen by incorporating a delivery-only restaurant can capitalise on the in-house offering. 

Who is the Ghost Kitchen Business Model Suitable For?

Dark kitchens or delivery kitchens are ideal for delivery-only food businesses , for use as a startup kitchen, an industry-standard kitchen for selling homemade food or as a central production unit . 

Dan Warne, the managing director of Deliveroo UK explains:  “The whole idea is to help restaurant businesses expand into new areas without necessarily having the same cost-base they would have in expanding on the high street.” 

Dark Kitchen: the future of takeaway?

The ability to offer multiple cuisines from the same kitchen space is one of the key attractions of a dark kitchen. A subsidiary of Deliveroo – Deliveroo Editions – has developed a network of dark kitchens, located off-site from restaurants to increase the options available to customers and to extend the reach to new places. 

The platform also supports the restaurant industry by allowing new chefs to launch for the first time. Uber founder Travis Kalanick has invested in a large number of dark kitchens in London to cater solely to takeaway orders with apps such as Uber Eats and Just Eat. 

With the success of the dark kitchen, we will soon see more big brands and organisations trying out their own vertically integrated restaurants and ghost kitchens. 

Running a Ghost Restaurant

To get your virtual restaurant up and running, firstly and most essentially, commercial kitchen space is required to rent during operational times. Your licensed brand or concept will need exposure and visibility on a delivery app, delivery supplies such as commercial kitchen equipment and ordering of ingredients and division of labour. Get all the top tips for renting a commercial kitchen with Dephna’s ultimate guide. 

Food Quality and Food Safety 

With the delivery market booming, to stay ahead of the curve, it’s essential that your delivery-only kitchen abides by the rules set by the Foods Standard Agency and achieves the highest rating on the food hygiene rating scheme. By providing perfect conditions for food to be stored and prepared it will arrive with the customer at the intended temperature for it to be safe and enjoyable to eat. It’s also worth keeping an eye out for dark kitchens that have on-site cold storage rooms . 

Local Authority Regulation

Food production is regulated at the local level by your health department. As dark kitchens are still a fairly new concept, regulators may be unfamiliar with the design. It’s important for them to understand the expected requirements of a food service business without sit-in customers.  

The Benefits of Dark Kitchens for Restaurants

• Lower Operational Costs: the restaurant industry is notorious for having very high overheads. The cloud kitchen model allows the restaurant to avoid the expense of renting a restaurant space and instead focuses solely on the food, also eliminating the need for service staff. 
• Flexibility & adaptability: cloud kitchens can operate from anywhere; no need to chose an expensive prime location and are able to easily adapt to seasonal demand. Smaller businesses can even benefit from joining online delivery marketplaces such as Deliveroo or Uber Eats, eliminating the need to develop their own apps for sales purposes. 
• Automation: businesses can also benefit from increased efficiency due to the automated sales process and the ability to focus on food preparation processes rather than service. This efficiency is necessary for food scale-ups and larger companies.
• Food Quality: healthy, high-quality food is essential for today’s customers, hence the reason many of these kitchens have dedicated their marketing to better quality foods at a lower price.
• Technology: cloud kitchens have access to user data and real-time adaptability to determine demand in specific areas.

Cloud Kitchen Business Models

The ghost kitchen has a few variations, all very similar and mostly function in the same way, but slight differences that might sway you between one or the other. So, if anybody asks you, “ what are dark kitchens? ” here are the different business models of the dark kitchen:

The “traditional” dark kitchen

When one brand owns or rents a single kitchen location and specialises in a single type of cuisine and relies on delivery apps. With questions around the high street format, are traditional dark kitchens the future of the food industry ?

Takeaway dark kitchen

Similar to a traditional setup but additionally allows customers to wait for and collect their food. 

Multi-brand dark kitchen

To keep operational costs down, multiple brands share one kitchen under one parent company. 

Aggregator-owned dark kitchen

Food delivery app aggregator channels are also using the dark kitchen models to offer an empty kitchen space for businesses to rent. 

Outsourced dark kitchen

In the most recent addition to the cloud kitchen business model, a restaurant is able to outsource as many processes as they wish to before applying the finishing touches themselves.

At Dephna, we offer complete flexibility and 24-hour access with commission-free deliveries. If you’re interested in renting a commercial kitchen , enquire now to book a visit .

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The rise of the virtual kitchen, also known as a virtual restaurant, has taken the food and hospitality industry by storm over the last couple of years, and with even more force over the duration of the last six months.  In today’s climate, the prospect of launching a new restaurant is daunting, and with good […]

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Ghost Kitchen Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their ghost kitchen businesses.

If you’re unfamiliar with creating a ghost kitchen business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a ghost kitchen business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Ghost Kitchen Business Plan?

A business plan provides a snapshot of your ghost kitchen business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Ghost Kitchen

If you’re looking to start a ghost kitchen business or grow your existing ghost kitchen company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your ghost kitchen to improve your chances of success. Your ghost kitchen business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Ghost Kitchen Businesses

With regard to funding, the main sources of funding for a ghost kitchen business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for ghost kitchen companies.

Finish Your Business Plan Today!

How to write a business plan for a ghost kitchen business.

If you want to start a ghost kitchen business or expand your current ghost kitchen business, you need a business plan. The guide below details the necessary information for how to write each essential component of your ghost kitchen business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of ghost kitchen business you are running and the status. For example, are you a startup, do you have a ghost kitchen business that you would like to grow, or are you operating several ghost kitchen businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the ghost kitchen industry.
• Discuss the type of ghost kitchen business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of ghost kitchen business you are operating.

For example, you might specialize in one of the following types of ghost kitchen businesses:

• Single-Brand Ghost Kitchen: In this type of ghost kitchen business, you will specialize in the preparation and packaging of a known “brand name” product, such as hamburgers, tacos or other common food items. Your kitchen will prepare foods exactly as that offered through the restaurant, using the same ingredients and cooking techniques.
• Multi-Brand Ghost Kitchen: This type of ghost kitchen serves multiple restaurants, offering meals or specialty food items that mimic those served by the restaurant. The emphasis may be on fast food items or full traditional meals, with the multi-brand ghost kitchen recreating each one to conform to the contracted restaurants.
• Commissary Ghost Kitchen: A commissary ghost kitchen prepares food in large scale quantities for companies, such as hospitals, hotels and restaurants. Quantities that are prepared are large and preparation includes pre-packaging in trays for bulk transport.
• Grocery Store Ghost Kitchen: Modern grocery stores will often offer a deli, soup and salad menu, or other upscale food choices which are prepared off-site in a ghost kitchen. These dishes use foods found within the grocery stores and highlight the flavors and creations that partner with the store.

In addition to explaining the type of ghost kitchen business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of revenue during the past six months, opening a second ghost kitchen store location, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the ghost kitchen industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the ghost kitchen industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your ghost kitchen business plan:

• How big is the ghost kitchen industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your ghost kitchen business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your ghost kitchen business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: grocery companies, corporations, governmental agencies, local and regional building centers, and restaurants.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of ghost kitchen business you operate. Clearly, small retail stores would respond to different marketing promotions than would corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other ghost kitchen businesses.

Indirect competitors are health foods stores and other retail outlets that do not prepare food items, ethnic and specialty food stores, corporate dining rooms and chain restaurants.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of ghost kitchen business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for multi-brand businesses?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a ghost kitchen business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of ghost kitchen company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide elegant meals for corporate occasions in addition to fast foods for young consumers?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your ghost kitchen company. Document where your company is situated and mention how the site will impact your success. For example, is your ghost kitchen business located in a busy retail district, a business district, a standalone building, or near several restaurants? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your ghost kitchen marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in industry-related magazines
• Reach out to websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your ghost kitchen business, including answering calls, planning and stocking kitchen items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 10th large corporate order, or when you hope to reach $X in revenue. It could also be when you expect to expand your ghost kitchen business to a second or third location.

Management Team

To demonstrate your ghost kitchen business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing ghost kitchen businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a ghost kitchen business or successfully running a ghost kitchen in a large corporation.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 150 customers per day, and/or offer special discounted items online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

5 Year Annual Income Statement

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your ghost kitchen business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

5 Year Annual Balance Sheet

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a ghost kitchen business:

• Cost of inventory and related packaging
• Cost of furnishings
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

5 Year Annual Cash Flow Statement

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your kitchen location lease or a list of corporate entities who are already lined up to buy prepared meals from your ghost kitchen.

Writing a business plan for your ghost kitchen business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the ghost kitchen industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful ghost kitchen business.

Ghost Kitchen Business Plan FAQs

What is the easiest way to complete my ghost kitchen business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your ghost kitchen business plan.

How Do You Start a Ghost Kitchen Business?

Starting a Ghost Kitchen business is easy with these 14 steps:

• Choose the Name for Your Ghost Kitchen Business
• Create Your Ghost Kitchen Business Plan
• Choose the Legal Structure for Your Ghost Kitchen Business
• Secure Startup Funding for Your Ghost Kitchen Business (If Needed)
• Secure a Location for Your Business
• Register Your Ghost Kitchen Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Ghost Kitchen Business
• Buy or Lease the Right Ghost Kitchen Business Equipment
• Develop Your Ghost Kitchen Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Ghost Kitchen Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Ghost Kitchen business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how a Growthink business plan consultant can create your business plan for you.

Other Helpful Business Plan Articles & Templates

How to Write a Ghost Kitchen Business Plan (With Examples)

Jan Lundvik

July 20, 2023

Making a ghost kitchen business plan is the first step to starting your own money-making food business. Ghost kitchens, also known as virtual or cloud kitchens are a new kind of food place that only does takeout and delivery orders.

With the rise of food delivery apps and people wanting to eat at home more, ghost kitchens have become a really good way to start a food business that doesn’t cost too much.

Starting a successful ghost kitchen needs more than just loving food. You need a good plan and our guide will help with that. It’ll show you how to make a detailed business plan that can bring in investors, get you the money you need to start, and ensure your business keeps making money.

With upfront planning and continuous monitoring, this plan aims to maximize the probability of building a thriving and sustainable ghost kitchen business.

Executive Summary

The executive summary is essentially the elevator pitch for your entire business plan. It should provide a high-level overview of the key elements and quickly make the case for why your ghost kitchen concept is viable, profitable, and worth investing in.

When writing an executive summary for a virtual restaurant, you’ll want to focus on:

• Briefly explaining the ghost kitchen business model and how your concept utilizes it. This provides context upfront for readers who may be unfamiliar with the operational approach.
• Introducing your brand positioning, menu offerings, and what makes your concept unique or better than competitors. Establish your value proposition.
• Summarizing customer demand drivers in your target market and how your menu and operations are tailored to meet customer needs.
• Highlighting key elements of your growth strategy focused on delivery and digital platforms. How will you drive traffic?
• Providing an overview of unit economics – average sales volumes, costs, and profit margins so investors understand the financial opportunity. Use easy-to-digest numbers and metrics here.
• Outlining high-level startup and operating costs involved so readers understand the full funding requirements.
• Explaining expected ROI timeline and projections investors can expect if funding the venture.

The executive summary should excite and intrigue readers enough to read the full plan. Keep it concise at 1-2 pages max while ensuring it covers all the key elements of your ghost kitchen concept, economics, and growth trajectory.

Krave Kitchen is a proposed virtual restaurant launching in Chicago focused on elevated comfort food delivery. By leveraging online ordering and a compact ghost kitchen model, our mission is to make crave-worthy dishes like mac and cheese, wings, and milkshakes available citywide at the tap of a button.

We have partnered with Kitchen United to lease a fully equipped kitchen bay in their Chicago Loop location. This enables launching quickly without any upfront capital expenditure. Our menu will feature gourmet twists on classic comforts like deep-dish mac and cheese pizza, Korean fried chicken wings, and artisanal ice cream sandwiches.

The Chicago comfort food delivery market is estimated at $2.2B annually and growing 30% per year with Millenials and Gen Z driving demand. Our quantitative and qualitative market analysis gives us confidence we can capture a 0.6% market share, reaching monthly sales of $110k at maturity.

We estimate average order values of $28, with food costs of 35% and gross margins of 60% when factoring in delivery app commissions. Krave Kitchen will break even within the first 9 months of operations. We aim to exit at a 3x EBITDA multiple in year 4, delivering an expected 3-year ROI of 45% to equity partners.

To fully build out our kitchen, develop our delivery-optimized menu, and operate for the first 8 months until profitability, we are seeking $450k in seed funding in exchange for 15% ownership. Krave Kitchen presents a unique opportunity to invest in an asset-light virtual restaurant poised to capitalize on surging demand for delivery.

The Company Overview

The Company Overview tells the origin story of your virtual restaurant concept. It should provide background on the founders, summarize the brand identity and positioning, explain the menu and cuisine type, and articulate the problems you aim to solve for customers.

When crafting this section for a ghost kitchen, key elements to cover include:

• Introducing the founders and their relevant experience. This builds credibility.
• Explaining the motivations and vision behind launching a delivery-only operation. Share key insights that led to this idea.
• Describe the type of food and cuisine your kitchen will serve. Share menu highlights and details that convey your unique offerings.
• Outlining the core customer pain points or needs your concept addresses. How does your menu, ordering process or operations solve these issues?
• Summarizing how you settled on the ghost kitchen model and why it’s the right fit for executing your vision over traditional restaurants.
• Detailing any partnerships, technology platforms, or operational advantages you’ll leverage to streamline the ghost kitchen.
• Explaining key brand identifiers like name, logo, and positioning that convey your identity and ethos.

The Company Overview section should get readers excited about the founders, concept, menu, and opportunity your ghost kitchen presents in the evolving market.

Keto Bites is the brainchild of Mary C and Ken M who met while training at Le Cordon Bleu culinary school. With nutrition top of mind for modern diners, Mary and Ken saw an opportunity to make healthy, keto-friendly meals more accessible by launching a delivery-optimized ghost kitchen.

Based in Austin, Keto Bites will offer low-carb breakfast, lunch, dinner, and snack options tailored for the ketogenic diet. Menu items include keto waffles, cauliflower crust pizzas, charcuterie boards, and more. With customization options, Keto Bites provides flexibility for different requirements.

By leveraging a centralized commissary kitchen model with no dining room overhead, Keto Bites can focus operations entirely on preparing high-quality keto meals for seamless home delivery. This increases profit margins over traditional restaurants while keeping prices reasonable. Keto Bites aims to satisfy dieters struggling to stick to their nutritional plans.

Founded by David L, a 15-year hospitality veteran, Quick Bao is a new San Francisco-based ghost kitchen dedicated to modern Taiwanese street food. The idea was inspired by watching long lines form daily for bao stands in night markets across Asia.

Quick Bao will offer an array of savory and sweet steamed buns with creative fillings like five-spice pork belly, crispy duck, and custard with fresh fruit. Sides include seasoned fries and refreshing milk tea. The menu will also feature rotating seasonal baos.

By preparing baos in bulk from a delivery-optimized ghost kitchen, Quick Bao can ensure speed, affordability, and consistency. Customers can conveniently order anytime via delivery apps. Quick Bao aims to bring authentic Asian flavors to West Coast foodies craving baos on demand.

Team and Management

The Team and Management section should outline the key players involved in launching and operating the ghost kitchen. It builds confidence by demonstrating you have the right expertise, experience, and personnel to execute the concept.

When drafting this section, ghost kitchens should focus on:

• Introducing all founders and partners, along with brief backgrounds demonstrating their relevant industry experience.
• Detailing the ownership split and role of each co-founder to show a clear delineation of responsibilities.
• Explaining any key hires made or planned, especially head chef, general manager, or marketing lead. Share standout qualifications.
• Describe the advisory board if established, and what strategic guidance they provide.
• Outlining organizational structure and plans for future hiring as the business scales.
• Emphasizing experience in online delivery operations, virtual restaurants, and data-driven management.
• Including founder photos and bios in an appendix to put faces to names.

The goal is to validate that the team has the required blend of culinary skills, technical expertise, marketing savvy, and management acumen to convert the business plan into an operating success. Identify any gaps that need filling.

The co-founders of City Woks both bring decades plus experience in hospitality and business operations.

CEO Chris W previously founded and led a 10-unit cafe chain focused on customer technology integration and analytics-based growth.

Head Chef Mei T graduated top of her class from Le Cordon Bleu and honed her craft at Michelin-star restaurants in Shanghai and San Francisco.

CTO Sanjay P has led development for food delivery services managing over 5 million monthly orders.

With Chris’ operations experience, Mei’s culinary expertise, and Sanjay’s tech-savvy, City Woks is positioned to seamlessly execute our mission of delivering exceptional authentic Chinese food forged through technology.

At PizzaCo, our lean founding team combines deep pizza-making heritage with delivery technology expertise.

Giorgio R learned the art of pizza from his family in Naples before moving to New York to work at renowned pizzerias. He will lead culinary innovation.

Co-founder Alyssa P has a BSE in Operations Research and previously managed logistics for food delivery startups. She oversees our operations.

We have partnered with Velocity Partners for tech development and will be making key hires in marketing and customer service. Our core team has the strategic experience necessary to disrupt pizza delivery in Chicago and scale nationally.

Market Analysis

The Market Analysis section demonstrates a deep understanding of your industry, customers, and competitors. It’s crucial for validating demand and projecting realistic growth.

When developing this section, ghost kitchens should focus on:

• Providing an overview of virtual restaurant industry trends – growth, consumer shifts, competitive dynamics.
• Defining your target customer segments in detail – demographics, behaviors, psychographics. Back up claims with data.
• Analyzing direct and indirect competitors – including their offerings, prices, unit volumes, and strengths/weaknesses.
• Estimating total addressable market size for your city or region, with statistics on historic growth.
• Forecasting future market growth over the next 3-5 years as online delivery adoption increases.
• Detailing what macro and micro market factors could impact demand for your concept – both risks and opportunities.
• Outlining how your positioning, menu, and operations are tailored to capture the opportunities identified in this analysis.

The goal is to thoroughly analyze the competitive landscape and demonstrate why customers will choose your ghost kitchen over alternatives. Support assertions with cited industry data, projecting conservatively. Identifying potential threats will strengthen your plan.

The meal kit delivery industry has boomed, with an estimated 12 million U.S. households now purchasing meal kits. However, prepared meal delivery represents an even larger $17 billion market. With increasing demand for convenient dinnertime solutions, the prepared meal delivery sector is projected to grow at a 7% CAGR through 2025.

Our target customers are urban professionals aged 25-40 without time to grocery shop and cook but want to eat healthy home-cooked meals. 63% say customized nutrition is important. Competitors in this space include subscription services like Freshly but prepared meal choices are still limited.

By providing chef-designed, personalized paleo meals on-demand, our ghost kitchen uniquely solves consumers’ needs for healthy, customized, delivery-native dinner options in Seattle. We estimate obtaining a 2.3% market share within 2 years of operations by capitalizing on this value proposition.

The bustling New York City dessert delivery market has grown steadily at 4% annually, reaching an estimated $730 million in 2020 sales. Bakeries dominate, holding a 52% share. Our consumer research indicates high demand, especially among corporate clients for more premium, innovative offerings.

Our upscale virtual dessert kitchen will differentiate from competitors with artisanal, photogenic sweets like our signature molten chocolate cakes and berry tartlets. With dessert-specific delivery branding, we can uniquely capitalize on consumer appetite for gourmet, splurge-worthy selections.

Focusing exclusively on desserts also provides economies of scale advantages. We conservatively estimate the ability to capture a 1.2% market share within 18 months by catering specifically to high-end corporate and residential segments.

Concept and Menu Strategy

The Concept and Menu Strategy outlines your brand identity , offerings, and how the menu is optimized for delivery. This section brings your virtual restaurant to life.

Key elements ghost kitchens should cover include:

• Articulating your brand positioning statement and core values. What key attributes define your identity?
• Detailing your value proposition – how your offering delivers more value than competitors.
• Providing an overview of menu categories, signature items, and types of cuisine.
• Explaining how the menu is specifically designed for delivery. This includes packaging, portion sizes, and easing transit.
• Describing customization and dietary options to meet customer needs.
• Outlining your pricing strategy and rationales behind price points for competitiveness and profit goals.
• Detailing plans for menu rotating, testing, and optimization based on data and customer feedback.
• Including full menu detail and photos in the appendix for easy visualization.

The goal is to convey to investors how your concept, branding, and menu are distinct and tailored to succeed in a virtual restaurant model based on target customer preferences.

Urban Chef offers fast-casual quality global street food with the convenience of delivery. Our diverse menu features regional specialties like shawarma, banh mi, empanadas, and build-your-own poke bowls. Customers can sample flavors from around the world.

Focusing on street food classics that travel well enables optimized packaging for transit. Our affordable pricing targets students, young professionals, and families without breaking their budgets. We estimate an average $22 order value.

Our value proposition is providing affordable access to global flavors from the comfort of home. Our ghost kitchen model allows price points competitors can’t match for quality.

As a plant-based virtual kitchen, Veg Out’s brand ethos stems from our commitment to sustainable, compassionate, waste-free cooking. Our diverse menu satisfies vegan, vegetarian, and flexitarian diets.

Guests build bowls and burgers combining proteins like chickpeas, lentils, or jackfruit with fresh veggie toppings and house-made sauces. Our desserts are dairy-free indulgences like brownies and cheesecake.

With all compostable packaging and optimized travel solutions, Veg Out delivers quality plant-based fare designed for urban markets. Our ghost kitchen model enables access with value pricing at 20% below dine-in competitors.

Marketing Plan

Since ghost kitchens lack physical storefronts, marketing efforts are crucial for generating awareness and repeat business. The plan should outline marketing strategies for reaching and engaging your target customers online and through delivery apps.

Key elements to cover in this section include:

• Detailing promotional tactics like social media ads, flyers, and discounts to drive new customer acquisition around the launch.
• Discussing partnership opportunities with delivery apps, corporate meal programs, catering, etc. to rapidly scale orders.
• Explaining intended social media and influencer marketing to build brand awareness and following.
• Describing a memorable grand opening promotion to create a splash when you first launch.
• Outlining grassroots tactics like sampling, local events, and PR outreach to make an impact in the community.
• Tracking and measurement methodology to monitor effectiveness and optimize spend.
• Allocating an owned, earned, paid media budget based on scalable ROIs.

The goal is to demonstrate a digitally-savvy performance marketing plan tailored to drive real transaction volume to a virtual restaurant. Tie activities directly to projected sales growth.

To promote the launch of City Wok’s ghost kitchen, we will leverage a multi-channel digital marketing strategy targeting downtown office workers seeking affordable lunches. Tactics include:

• Targeted social media ads across Facebook, Instagram, and LinkedIn promoting our $5 lunch special for the first month.
• PR outreach campaign pitching exclusive menu previews to local lifestyle and food bloggers.
• Prominent search and display ads on GrubHub, UberEats, and DoorDash to drive delivery app orders. We have allocated 15% of our marketing budget here given the strong ROI potential.
• Direct mail flyer to all offices within a 2-mile radius including a unique promo code for 10% off first orders.

As a plant-based ghost kitchen, Veg Out’s marketing strategy relies heavily on social media and influencer partnerships to raise brand awareness among our core demographic. Key programs include:

• Instagram giveaway with local vegan influencers to promote our launch and attract new followers.
• Monthly TikTok video collaborations with up-and-coming chefs creating plant-based recipes.
• Ongoing email nurturing campaign with health-conscious content to encourage repeat purchases.
• Pop-up sampling events at local gyms, yoga studios, and farmers markets to introduce Veg Out meals.

We aim to build an organic community of brand advocates by engaging potential customers through lifestyle-aligned touchpoints. Our focus will be on retention and customer lifetime value after launch.

Here are some examples of social media and influencer marketing campaigns that could work for ghost kitchens:

Social Media Campaigns:

• Instagram giveaway – Post photos of signature dishes and run a contest for free meal combos to drive followers.
• TikTok taste test challenge – Film customers taste-testing menu items and use a trending sound/hashtag to go viral.
• Facebook weekly specials – Promote a limited-time special dish each week to existing followers to encourage reorders.
• Twitter polls – Post polls asking followers to vote on which new menu item they want added to drive engagement.

Influencer Marketing:

• Sample drops to micro-influencers – Send free meal kits to micro-influencers in your area to feature on Instagram and TikTok for authentic buzz.
• Food blogger media kits – Reach out to relevant local food bloggers and offer a media kit with free delivery credit in exchange for reviews.
• YouTube mukbang partnerships – Sponsor mukbang YouTubers to feature an entire menu review and ASMR eating experience.
• TikTok chef collaborations – Bring on TikTok chefs as guest collaborators to develop a special viral dish together.

Focusing on organic, engaging social content and mutually beneficial influencer partnerships can build brand affinity with potential customers online for a ghost kitchen.

Operations Plan

The Operations Plan details how you will manage day-to-day business functions from cooking to delivery logistics. It demonstrates you have the processes and infrastructure to smoothly run a virtual restaurant.

Key elements ghost kitchens should address in this section:

• Describing the commercial kitchen location secured, including layout, capacity, and licenses obtained.
• Explaining required roles like head chef, prep cooks, packaging team, and expected hiring timeline.
• Detailing sourcing strategy for procuring quality ingredients at optimal prices.
• Outlining relationships with food delivery platforms and order management technology.
• Listing necessary kitchen equipment based on menu offerings and estimated costs.
• Explaining workflow during peak order periods to fulfill demand while maintaining quality standards.
• Describing food safety procedures, packaging solutions, and delivery handoff logistics.

The goal is to provide investors confidence you can effectively operate the ghost kitchen on a daily basis to meet sales, efficiency, and profitability goals.

Our ghost kitchen will be located in a leased 1,200 sq ft commissary kitchen facility at 234 Oak St. We secured this centralized site to provide delivery coverage across downtown. The space features 8 cooking stations, industrial refrigeration, and packaging counters optimal for high-volume preparation.

We plan to hire 2 prep and line cooks and 3 delivery drivers/packaging staff at launch. The founding chef will oversee all back-of-house operations. With projected order volume averaging 75-100 meals per day in the first few months, this provides sufficient staffing. We forecast needing to double hiring after 6 months of growth.

We have partnered with FoodHub, a digital platform connecting restaurants to suppliers, for sourcing all ingredients from local farms and purveyors. This ensures we get the freshest, seasonal ingredients. We also get the benefits of bulk purchasing and consolidated delivery to keep costs low.

For online ordering infrastructure, we have built direct integrations with UberEats, Grubhub, and DoorDash which account for 95% of delivery share in our market. Customers can seamlessly order across these apps.

Our kitchen is fully equipped with commercial ranges, chillers, workstations, and packaging equipment tailored for our globally inspired menu. We have all the necessary capabilities in-house for soup-to-nuts meal preparation and delivery dispatch.

Financial Plan

The Financial Plan converts all the operational details into numeric projections. This section should provide hard figures on costs, sales, profitability, and funding needs.

Key elements ghost kitchens should include:

• Itemizing startup costs – kitchen equipment, licensing, legal, branding.
• Listing ongoing fixed and variable operating expenses based on the business model.
• Forecasting monthly and annual sales based on market data, prices, and order volumes.
• Developing P&L statements based on realistic assumptions. Project profit margins.
• Detailing cash flow needs and burn rate expectations by month, tied to growth plans.
• Conducting breakeven analysis on when profitability is reached.
• Performing sensitivity analysis on how variances in assumptions like order values or food costs impact financials.
• Outlining key assumptions underlying all financial projections made.

The goal is to demonstrate the economic viability and profit potential of the ghost kitchen based on intelligent financial modeling. Identify risks, challenges, and capital requirements.

Funding Request

The Funding Request quantifies how much capital you need to launch and when investors can expect returns. It should clearly articulate how investment will be used.

Key elements ghost kitchens should cover in this section:

• Stating the total capital amount you are requesting from investors and expected equity to provide.
• Detailing specific use of funds. How much will go towards kitchen build-out, operating expenses, hiring staff, marketing, etc?
• Outlining milestones that additional funding amounts will be needed to achieve.
• Projecting investor ROI timelines based on financial forecasts. When can they expect payback?
• Calculating ROI multiples expected at exit strategies like acquisition or franchise expansion.
• Describing how you arrived at the valuation for the business. Justify projected valuation at maturity.
• Explaining how investor funds specifically will accelerate growth and enable scaling.

The goal is to tie the funding request to clear business growth plans and demonstrate sizable upside potential on investment at exit. Be transparent on risks and timeline expectations.

We are seeking $550,000 in seed funding for a 25% equity stake in PizzaCo. This capital will enable us to set up our ghost kitchen operations and execute our aggressive expansion strategy for Chicago.

Use of Funds:

• $125,000 for kitchen build-out and equipment
• $100,000 for product development and menu finalization
• $150,000 for hiring staff and employee training
• $175,000 for marketing and promotions
• Based on our financial projections, investors can expect an estimated 3x ROI within 5 years as we scale to 15 locations in Chicago and begin franchising nationally. The virtual kitchen model provides attractive unit economics and accelerated growth.

Keto Bite is requesting $450,000 in exchange for 20% equity ownership. These funds will allow us to establish our Austin ghost kitchen and achieve rapid growth.

Capital uses:

• $200,000 for commercial kitchen leasehold improvements & equipment
• $125,000 for startup operating expenses and staffing
• $125,000 for a comprehensive digital marketing strategy

We aim to reach profitability by year 2. Given consumer demand for ketogenic meals, we expect to franchise nationally within 4 years for an estimated 5x ROI. Austin’s affluent market provides a prime launchpad for this specialty concept. We invite investors hungry for a stake in the future of food delivery.

How To Write a Conclusion

Here are some tips on writing an effective conclusion for a ghost kitchen business plan:

The conclusion should summarize the most compelling points and create a call to action for potential investors. It reinforces why your ghost kitchen is primed for success.

Key elements ghost kitchens should cover:

• Briefly recap the market opportunity as delivery dining habits shift.
• Summarize your unique value proposition and sustainable competitive advantage.
• Highlight your experienced founding team and any traction to date.
• Emphasize projected profitability and return potential.
• Note how you’ll leverage data and technology for efficient operations.
• List out the immediate next steps you’ll take post-funding to hit the ground running.
• Close with a statement on how your ghost kitchen is positioned to become the premier player in the space.
• Include a call to action for investors to help seize the opportunity and grow with you.

The goal is to leave readers excited by the growth prospects, upside potential, and your capability to execute. Demonstrate you have a prudent plan to build a thriving virtual restaurant. The conclusion should spur investors to act.

The ghost kitchen model represents a compelling opportunity to meet rising consumer demand for delivery. By focusing exclusively on off-premise dining, we can optimize operations and economics not possible with traditional brick-and-mortar restaurants.

Urban Chef’s competitive advantage stems from our diverse global street food menu tailored for delivery. Our centralized virtual kitchen location provides cost efficiencies traditional takeout restaurants lack. We are led by an experienced team combining culinary and operational expertise with data analytics capabilities.

With the funding we have outlined, Urban Chef is poised to become the premier ghost kitchen for exotic and crave-worthy delivery meals in Chicago. We will quickly scale by leveraging our omnichannel digital marketing strengths.

The next steps include finalizing our lease agreement, completing the kitchen build-out, and bringing on a talented head chef to refine the menu. We will also initiate recruiting and onboarding of our hiring pipeline to be ready for launch. Site selection analysis will begin for a second ghost kitchen location to expand our market footprint.

This opportunity aligns perfectly with changing consumer habits. We welcome investors with a vision to help Urban Chef establish market leadership in this emerging segment.

Conclusion and Key Takeaways from This Guide

In conclusion, a winning ghost kitchen business plan clearly articulates every aspect of your virtual restaurant concept and growth strategy. It demonstrates to investors that you have thoroughly evaluated the opportunity, crafted a differentiated value proposition, and developed an executable plan for profitability.

Key takeaways for developing an effective ghost kitchen business plan include:

• Conducting extensive market research into customer demand drivers, competition, and industry trends to inform your model.
• Describing your unique branding, menu offerings, and positioning to stand out.
• Detailing an omnichannel marketing plan tailored for digital and delivery promotion.
• Mapping out the supply chain, staffing, equipment, and technology like a POS system that you need for smooth operations.
• Building comprehensive financial projections supported by intelligent assumptions.
• Quantifying capital requirements and use of funds to fuel growth milestones.

With a comprehensive business plan that checks all the boxes, you can compellingly convey the vision for your ghost kitchen and the expected return on investment. Use it to open doors to funding sources and accelerate your pathway to profitability.

The next steps are to finalize sections, incorporate investor feedback, and keep refining the plan as you execute. View it as a living document to update as you gather data and achieve milestones. With a clear roadmap guiding decisions, your ghost kitchen can gain momentum on the journey to success.

You might also like: Best Cloud & Ghost Kitchen POS Systems How to Choose The Best Ghost Kitchen Business Model How to Start a Ghost Kitchen Business: A Step-by-Step Guide

Here are some common mistakes to avoid when writing a ghost kitchen business plan:

• Failing to clearly explain the ghost kitchen model – Don’t assume investors inherently understand the virtual restaurant concept. Concisely describe how it works.
• Weak competitive analysis – Thoroughly research direct and indirect competitors both local and national. Outline your differentiation.
• Unrealistic financial projections – Base sales forecasts, expenses, growth timelines on actual market data – not aspirational guesses.
• Overcomplicated concept – Avoid overly complex menus or branding that will be hard to execute operationally. Keep it simple.
• No risk analysis – Address potential challenges like fickle demand, thin margins, reliance on delivery apps.
• Lack of customer insights – Include relevant market research, surveys, interviews to back up customer targeting.
• Ignoring unit economics – Calculate projected profitability per location to ensure model works.
• Vague marketing plan – Get detailed on tactics, channels, influencer partnerships that will attract customers.
• Failure to size funding need – Many ghost kitchens underestimate startup and operating capital required.
• Not conveying passion – Infuse the business plan with your enthusiasm and founder journey. Make investors believe.

Conduct diligence in each section and avoid unnecessary assumptions. Demonstrate your ghost kitchen concept is grounded in intelligent planning.

Here are some common challenges faced by ghost kitchens and tips on how to address them in your business plan:

• Low Barriers to Entry – Highlight your unique value proposition and sustainable competitive advantage that sets you apart.
• High Real Estate Costs – Research optimal locations that balance space costs with demand and delivery range.
• Managing Variable Demand – Develop projections using historical data and plan staffing/inventory accordingly.
• Digitizing Operations – Detail your integrated tech stack for seamless order management across platforms.
• Accessing Capital – Quantify funding needs and outline specific uses and growth milestones.
• Thin Profit Margins – Structure lean operations and prevent waste to maximize per unit economics.
• Fickle Customer Loyalty – Have a retention strategy, not just acquisition, to build repeat business.
• Reliance on Delivery Apps – Describe alternatives like direct ordering and corporate/catering channels.
• Food Safety & Packaging – Outline safety procedures, operating processes, and packaging solutions.
• Talent Shortages – Highlight recruitment plan and training programs for kitchen and delivery staff.

The more you demonstrate awareness of risks and solutions in your plan, the more investor confidence you will build.

Here are some of the key criteria investors typically look for when evaluating ghost kitchen startups to invest in:

• Experienced founding team with culinary and operational expertise
• Clear value proposition and competitive advantage
• Differentiated brand positioning and a menu offering
• A solid market analysis demonstrating demand drivers
• A financially prudent business model with realistic projections
• Omnichannel sales strategy beyond just delivery apps
• Scalability of concept for multi-unit expansion
• Advanced food production and ordering technology stack
• Strong unit economics and path to profitability
• Defensible IP, whether recipes, processes, or software
• Reasonable capital requirements and growth milestones
• Track record executing or iterating quickly based on data
• Community involvement, partnerships, and marketing savvy
• Potential for add-on revenue streams like CPG, licensing, etc.

Essentially investors want to see that ghost kitchen founders understand the business model intricacies, have a solid plan to drive profitability, and can scale the concept wisely with investment. Unique offerings, use of technology, and experienced teams help attract funding.

Some common challenges ghost kitchen startups face in attracting investors include:

• Lack of customer validation – Investors want to see evidence of real demand before committing capital. Many startups lack proof their concept will sell.
• Unclear path to profitability – With razor-thin margins, investors question if unit economics will work long-term. Financial models may be too optimistic.
• Unproven management team – First-time food entrepreneurs without experience raising capital or managing a commercial kitchen carry more perceived risk.
• Emerging industry – Some investors are still educating themselves on the virtual restaurant model and market landscape. Fewer data exist.
• Physical footprint risk – Not yet securing a kitchen location adds uncertainty around costs and delivery logistics.
• Competition from larger players – Major chains launching their own ghost brands makes it harder for independents to gain share.
• Technology risk – Relying on third-party delivery apps and ordering platforms creates vulnerability if terms change.
• Differentiation challenge – Many ghost kitchen concepts lack a distinct brand identity or menu innovation.
• Smaller check sizes – Lower average orders limit profit upside compared to dine-in restaurants.

The more a startup can demonstrate traction, experience, and a prudent plan addressing these concerns, the higher likelihood of obtaining funding.

Related Posts:

• How to Open a Coffee Shop: The Complete Guide
• How to Open a Pizza Shop: A Step-by-Step Guide
• How to Start a Ghost Kitchen Business: A Step-by-Step Guide

Jan is a writer and content creator at KitchenBusiness.com with a focus on the restaurant and food service industry. Drawing from his background in tech and UX design, Jan breaks down complex systems into digestible, actionable insights.

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What Is A Dark Kitchen (Ghost Kitchen)? (2024)

With restaurant deliveries soaring, an entirely new delivery and takeout business model emerged. Enter dark kitchens —highly efficient production units without a storefront optimized for delivery.

WHAT ARE DARK KITCHENS?

• CLOUD KITCHENS AND COVID-19

BENEFITS FOR RESTAURANTS

Where did the dark kitchen concept come from, ghost kitchens' essential success tips.

• 3. INVEST IN MARKETING

DON'T BE AFRAID OF GHOST KITCHENS.

Since the late 2000s, food delivery has transformed and boosted the restaurant industry. In this growth, third-party delivery apps play a pivotal role. By 2026, Restaurant-to-home delivery will be a $500B market with an annual growth rate of 8.29%. 

According to the U.S. Restaurant Association, 54% of adults believe takeout or delivery food is essential to their lifestyle . This shift in consumer behavior has led to the emergence of the business model known as dark kitchens, units without a storefront optimized for delivery.

Dark kitchens, also known as ghost kitchens or cloud kitchens, have many advantages for different business owners and types of restaurants. But what exactly is a dark kitchen?

Dark kitchens are restaurants that sell meals exclusively through delivery. Other names for them include cloud kitchens, ghost kitchens, or delivery-only restaurants.

Ghost kitchens have no sitting capacity for in-house diners or walk-ins, as they focus only on delivery, preparing food once an order comes in through a delivery app or an online ordering system.

Once the meal is ready, delivery drivers then collect it for delivery. Some dark kitchens also offer takeout, letting customers pick up their food.

Cloud Kitchens and COVID-19

By early 2020, ghost kitchens were already rising in the food delivery industry. Due to indoor dining restrictions and bans during the pandemic, their growth surged dramatically.

Conditions such as the lockdown forced restaurants to embrace more technology and digital platforms while simultaneously driving diners' increased use of food delivery services.

A 2021 study by Deloitte found that 79% of respondents were open to ordering from dark kitchens. This report marked a 20% increase from the previous year and a 32% jump from two years prior.

Despite restaurant reopenings, the 2021 Deloitte research found that digital food delivery was becoming more popular. The report found that 53% of individuals preferred digital meal ordering in 2020 and 64% in 2021. 

While growth rates may not be as high as during the epidemic, this trend has been growing year after year. 

In addition, post-pandemic, dark kitchens have attracted significant venture capital (VC) investments. Some companies have managed to raise $100 million in funding .

Today, dark kitchens are more relevant than ever. We expect to see more growth in this already exploding food business segment.

The dark kitchen market is forecast to reach $500 billion worldwide by 2026, four times larger than in 2018.

Dark kitchens are an excellent choice for those looking to establish or grow their restaurant because this model involves fewer risks and early costs. 

Regarding expenses, some construction industry companies highlight that the space required to establish this type of business is up to 60% less than that of a conventional restaurant.

Dark kitchens have pros and cons , but let's dive into the key benefits you need to know if you're considering opening one.

Cost Efficiency:

There is no need for customer seating or waiting areas.

Eliminates serving staff costs.

Lowers overall rent costs, reducing overhead.

Greater scalability without the constraints of physical dining areas.

Flexibility and Innovation:

Enables experimentation with new brands, menus, and concepts.

Easily adapts to changing consumer food trends.

Allows for quick transitions to different menus or concepts.

Multiple Virtual Brands:

One kitchen can serve multiple virtual brands.

Increases capacity to serve the growing food delivery market and expands into new geographic areas.

Target various market segments simultaneously.

Opportunity for cross-promotions and shared resources among virtual brands.

Dark kitchens or ghost kitchens existed before the epidemic. However, it is still being determined when they first appeared, even though one thing is sure: due to restaurant regulations, digital food orders increased during COVID-19.

While the term "ghost kitchen" was already in use online, there was a significant increase in online searches, as reflected on platforms like Google Trends, in early 2020. Moreover, some businesses began exploring this business model as early as 2017, and even some celebrities launched restaurants with this approach in 2019.

The success of online ordering players like Uber Eats , Just Eat , Doordash , Deliveroo , and many more paved the way for dark kitchens. These third-party delivery channels enable food businesses to connect easily with customers and quickly deliver meals to their doorstep .

There are several ways to approach opening a ghost kitchen. First, you must choose which business model to go with. 

Whether you manage a virtual kitchen or add a virtual offering to your kitchen, having a business plan and a clear idea is vital. These tips will assist you in strategizing for your dark kitchen.

1. Location Matters

Importance:   If operating online only, a ghost kitchen needs a strategic location to maintain order flow.

Delivery Zone: Your customers should ideally be within a three-mile radius for efficient deliveries.

Research: Before settling on a place.

Analyze the competition in the area.

Consider demographics.

2. Get the right tech

Importance: Ghost kitchens run efficiently on technology. Furthermore, you can collect data to enhance decision-making.

For example, instead of having multiple tablets bleeping at your staff as they re-punch orders into your POS, you can invest in one system to consolidate all orders and deliver them consistently to the kitchen.

Decision-making : Choose the platform that best fits your business model. 

Own Delivery Service:

Pros: Complete control and branding.

Cons: Higher marketing costs, building your ordering and fulfillment systems.

Third-party Delivery Service:

Pros: Convenience, wider reach.

Cons: Can eat into profit margins.

Platform for Streamlining Order Processes:

If working with multiple delivery partners, use a service that aggregates orders . This way:

Eliminate the need for various devices.

Reduce manual order input into the POS.

Save on staff costs and minimize their stress.

Speed up delivery times, leading to satisfied customers and repeat business.

Instead of having multiple tablets bleeping at your staff as they re-punch orders into your POS, you can invest in one system to consolidate all orders and deliver them consistently to the kitchen.

3. Invest in marketing

Importance: With no foot traffic or physical signage, your digital presence is your only storefront. 

Must-haves:

Clear branding and messaging.

Active social media.

Presence on delivery platforms.

Send e-mail marketing campaigns.

Ghost kitchens are increasingly relevant to evolving technology and consumer habits, representing a fusion of innovation and gastronomy. It's an opportune moment for those in the restaurant business to explore this approach.

Embracing this trend and learning from peers can strengthen your restaurant's position in the digital age. Success awaits those willing to adapt and grow. So feel free to jump in, or the missed opportunity might haunt you.

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How to open a dark kitchen?

Want to start a dark kitchen but don't know where to begin? Then you've come to the right place!

Our comprehensive guide covers everything related to opening a dark kitchen - from choosing the right concept to setting out your marketing plan and financing your business.

You'll also learn how to assess the profitability of your business idea and decide whether or not it can be viable from a financial perspective.

Ready to kickstart your entrepreneurial journey? Let's begin!

In this guide:

• What is the business model of a dark kitchen?
• What is the ideal founding team for my dark kitchen?
• Is there room for another dark kitchen on the market?
• How should I position my dark kitchen on the market?
• Where should I base my dark kitchen?
• What legal form should I choose for my dark kitchen?
• How much money do I need to start a dark kitchen?
• How will I promote my dark kitchen's?
• How do I build my dark kitchen financial forecast?
• How do I choose a name and register my dark kitchen?
• What corporate identity do I want for my dark kitchen?

What legal steps are needed to start a dark kitchen?

• How do I write a business plan for a dark kitchen?

How to raise finance for my dark kitchen?

What to do after launching my dark kitchen, key takeaways, learn how a dark kitchen works.

Before you can start a dark kitchen, you need to have a solid understanding of how the business works and what are its main revenue streams.

This will give you a glimpse into the profitability potential of your venture, whilst allowing you to decide whether or not it is a good fit for your situation (current skill set, savings and capital available to start the business, and family responsibilities).

It may be that creating a dark kitchen is an excellent idea, but just not the right one for you.

Before starting their own company, successful entrepreneurs typically:

• Consult with and take advice from experienced dark kitchen owners 
• Acquire hands-on experience by working in an operational dark kitchen

Take relevant training courses

Let's explore each option in a bit more detail.

Consulting with and taking advice from experienced dark kitchen owners

Having "seen it all", established business owners can offer valuable insights and hands-on advice drawn from their own experiences.

This is because, through both successes and failures, they've gained a more informed and practical understanding of what it takes to build and sustain a successful dark kitchen over the long term.

Acquiring hands-on experience by working in an operational dark kitchen

If you want to open a dark kitchen, having industry-specific experience is imperative because it equips you with the knowledge, network, and acumen necessary to navigate challenges and make informed decisions critical to the success of your future business.

You'll also be able to judge whether or not this business idea is suitable for you or if there might be conflicts of interest with your personal life (for example, long working hours could be incompatible with raising young children).

This work experience will also help you to make contacts in the industry and familiarise yourself with customers and their expectations, which will prove invaluable when you set up your dark kitchen.

Taking a training course is another way of familiarising yourself with the business model of your future activity before you decide to make the jump.

You may choose to complete a training course to obtain a certificate or degree, or just take online courses to acquire practical skills.

Before going any further in setting up your venture

Before you go any further with your plans to open a dark kitchen, make sure you have a clear vision of what it will take in terms of:

• What skills are needed to run the business successfully (do you have some or all of these skills?)
• What a standard working week looks like (does it suit your personal commitments?)
• What sales potential and long-term growth prospects the dark kitchen has (compare this with your level of ambition)
• What options you'll have once you decide to retire (or move on and inevitably sell the company)

This analysis of the business model and the constraints of the business should help you to check that your idea of launching a dark kitchen fits your entrepreneurial profile.

If there is a match, it will then be time to look at assembling the founding team of your business.

Create your business plan online!

Think your business idea could be profitable? Find out how with a business plan

Assemble your dark kitchen's founding team

The next step to start your dark kitchen is to think about the ideal founding team, or to go in alone (which is always an option).

Setting up a business with several partners is a way of reducing the (high) risk of launching a dark kitchen since it allows the financial risk of the project to be shared between the co-founders.

This also allows the company to benefit from a greater diversity of profiles in the management team and to spread the burden of decision-making over several shoulders.

But, running a business with multiple co-founders brings its own challenges. Disagreements between co-founders are quite common, and these can pose risks to the business. That's why it's crucial to consider all aspects before starting your business.

To make an informed decision, we suggest asking yourself these questions:

How many co-founders would increase the project's chances of success?

Do you and your potential partners share the same aspirations for the project, what is your plan b in case of failure.

Let's examine each of these questions in detail.

The answer to this question will depend on a number of factors, including:

• Your savings compared with the amount of initial capital needed to launch the dark kitchen
• The skills you have compared with those needed to make a success of such a project
• How you want key decisions to be taken in the business (an odd number of partners or a majority partner is generally recommended to avoid deadlock)

Put simply, your partners contribute money and/or skills, and increasing the number of partners is often a good idea when one of these resources is in short supply.

One of the key questions when selecting your potential partners will be their expectations. Do you want to create a small or large business? What are your ambitions for the next 10 or 15 years?

It's better to agree from the outset on what you want to create to avoid disagreements, and to check that you stay on the same wavelength as the project progresses to avoid frustration.

Of course, we wish you every success, but it's wise to have a plan B when setting up a business.

How you handle the possibility of things not working out can depend a lot on the kind of relationship you have with your co-founders (like being a close friend, spouse, former colleague, etc.) and each person's individual situation.

Take, for instance, launching a business with your spouse. It may seem like a great plan, but if the business doesn't succeed, you could find yourself losing the entire household income at once, and that could be quite a nerve-wracking situation.

Similarly, starting a business partnership with a friend has its challenges. If the business doesn't work out or if tough decisions need to be made, it could strain the friendship.

It's essential to carefully evaluate your options before starting up to ensure you're well-prepared for any potential outcomes.

Conducting market research for a dark kitchen

The next step in launching a dark kitchen is to carry out market research. Let's take a look at what this involves.

The objectives of market research

The objective here is very simple: to assess the level of demand for your business and whether there is an opportunity for it to thrive in your chosen location. 

The first step will be to check that the market is not saturated with competing offers and that there is room for a new player: your dark kitchen.

Your market analysis will also help you identify a concept and market positioning that has every chance of being successful in your target market, thereby helping increase your business's chances of success.

Carrying out market research for your dark kitchen will also enable you to better understand the expectations of your future customers and the most effective ways to communicate with them in your marketing plan.

Analyse key trends in the industry

Your market research should start with an industry analysis in order to gain a good understanding of the main players and current trends in your sector.

Once you've delved into the current state of the market, it will be time to assess what proportion of your target market can be seized by your dark kitchen. To do this, you will need to consider both the demand and supply side of the market.

Assess the demand

After checking out the industry, let's shift our focus to figuring out what your potential customers want and how they like to buy.

A classic mistake made by first-time entrepreneurs is to assess demand on the global or national market instead of concentrating on their target market. Only the market share that can be captured by your company in the short term matters. 

Your demand analysis should seek to find answers to the following questions:

• Who are your target customers?
• How many are there?
• What are their expectations?
• What are their buying habits?
• How much budget do they have?
• What are the different customer segments and their characteristics?
• What are the main distribution channels and means of communication for reaching each segment?

The aim of the demand analysis is to identify the customer segments that could be targeted by your dark kitchen and what products and services you need to offer to meet their expectations.

Analyse the supply side

You will also have to familiarize yourself with the competing dark kitchens on the market targeted by your future business.

Amongst other things, you’ll need to ask yourself:

• Who are the main competitors?
• How many competitors are already present?
• Where are they located?
• How many people do they employ?
• What is their turnover?
• How do they set their prices?
• Are they small independent businesses or national players?
• Do they seem to be in difficulty or are they flourishing? 
• What is their market positioning?
• What types of products and services do they offer?
• What do customers seem to like about them?

The aim of the competitive analysis is to identify who your competitors will be and to gather information that will help you find a differentiating commercial positioning (more on that later in this guide).

Regulations

Conducting market research is also an opportunity to look at the regulations and conditions required to do business.

You should ask yourself the following questions:

• Do you need to have a specific degree to open a dark kitchen?
• Do you need specific licences or permits?
• What are the main regulations applicable to your future business?

Given that your project is at an early stage, your focus should be to clear that there are no roadblocks from a regulatory standpoint before you deep dive into the planning process.

Once your project is more advanced, you will have the opportunity to talk about regulation more in-depth with your lawyer.

Concluding your market research

By the time your market research is completed, you should have either:

• Pinpointed an untapped business opportunity
• Or arrived at the realisation that the market is saturated, prompting the search for alternative business ideas or models.

If the conclusion is that there is an opportunity in the market to cater to one or more customer segments currently overlooked by competitors, that's great!

Conversely, if you come to the conclusion that the market is already saturated, don’t panic! The good news is that you won’t spend several years working hard on a project that has little chance of success. There is no shortage of business ideas either - at The Business Plan Shop, we have identified more than 1,300 potential business ideas!

Don't start from scratch!

With dozens of business plan templates available, get a clear idea of what a complete business plan looks like

Choose the right concept and position your dark kitchen on the market

The next step to start a dark kitchen is to choose the company's market positioning.

Market positioning refers to the place your product and service offering occupies in customers' minds and how it differs from how competitors are perceived. Being perceived as a high-end solution, for example.

To do this, you need to take the following considerations into account:

How can you make your business stand out from your competitors?

Can you consider joining a franchise as a way to lower the risks involved, is it better to start a new dark kitchen or acquire one that is already up and running, how to make sure your concept meets customer needs.

Let's look at each of these in a little more detail.

When you decide to start your own dark kitchen, you're facing an upward challenge because your competitors are already ahead. They have a good reputation, loyal customers, and a strong team, while you're just getting started.

Opening a dark kitchen offering exactly the same thing as your competitors is risky and potentially doomed to fail: why would customers take the risk of choosing a newcomer rather than a company with a proven track record?

This is why it is advisable to avoid direct confrontation by adopting a differentiated market positioning wherever possible: in other words, by offering something different or complementary to what is available on the market.

To find a market positioning that has every chance of success, you need to ask yourself the following questions: 

• Can you negate direct competition by serving a customer profile that is currently poorly addressed by your competitors?
• Can your business provide something different or complementary to what is already available on the market?
• Why will customers choose your dark kitchen over the competition? 
• How will your competitors react to your entry into their market?
• Is the market sufficiently large and fragmented (i.e. not dominated by a few large chains) to allow you to set up an independent business, or is it better to consider another avenue (see below)?

A good way of getting a market positioning that is guaranteed to seduce customers is to join a group with a proven concept.

Admittedly, joining a franchise is not necessarily as exciting as opening a dark kitchen with a clean slate, everything to invent and total freedom to do so, but it is a proven way of reducing the risk of entering the market.

By joining a franchise, you will benefit from a concept that is successful with customers, the brand recognition of a large network, and operational support with regard to supplier relations, processes and operating standards, etc.

In return, you will have to pay an entry fee and an annual royalty (on your company's sales).

Joining a franchise is a trade-off where you need additional capital and get less freedom in exchange for a lot less risk. It's not for everyone, and it's not possible everywhere (franchise opportunities vary from region to region), but it is nevertheless an option you should explore.

Another way to benefit from a proven concept and reduce the risk of your project is to take over a dark kitchen. 

Buying a dark kitchen allows you to get a team, a customer base, and above all to preserve the balance on the market by avoiding creating a new player. For these reasons, taking over a business is a lot less risky than creating one from scratch.

Taking over a business also gives you greater freedom than franchising, because you have the freedom to change the positioning and operations of the business as you see fit.

However, as you can imagine, the cost of taking over a business is higher than that of opening a dark kitchen because you will have to finance the purchase.

Once you have decided on your concept and the market positioning of your future dark kitchen, you will need to check that it meets the needs, expectations and desires of your future customers.

To do this, you need to present it to some of your target customers to gather their impressions.

Deciding where to base your dark kitchen

The next step to opening a dark kitchen is deciding where you want to set up your business.

Choosing the right location for your business is like finding the perfect stage for a play. Without it, your business may lack the spotlight it deserves.

Whilst there is no “perfect” location for your dark kitchen, one that meets as many of the following factors as possible could be ideal:

• Visibility and foot traffic - This is important for attracting customers to the dark kitchen and increasing sales. A location with high visibility and foot traffic can help generate more business.
• Parking space, road and public transport accessibility - This is crucial for the convenience of customers and employees. A location with ample parking space and good public transport accessibility can make it easier for customers to visit and for employees to commute.
• Proximity to target customers - For a dark kitchen, it is important to be located near the target customers, such as office buildings, residential areas, or tourist destinations. This can help increase delivery efficiency and reduce costs.
• Competitor presence - It is important to consider the presence of competitors in the area. A location with less competition can make it easier to establish a customer base and increase sales.
• Efficient logistics - For an industrial business like a dark kitchen, efficient logistics are crucial for timely and cost-effective delivery. A location with good access to major transportation routes and infrastructure can help streamline logistics.
• Storage space - A dark kitchen requires ample storage space for ingredients and supplies. A location with enough storage space can help reduce costs and ensure efficient operations.
• Availability of skilled labor - A location with a pool of skilled labor can provide a competitive advantage for an industrial business like a dark kitchen. This can help ensure high-quality food production and efficient operations.
• Easy access to main roads - This is important for transportation and delivery purposes. A location with easy access to main roads can help reduce delivery time and costs.
• Climate and soil quality - For an agricultural business, it is important to have a suitable climate and soil quality for growing crops. This can affect the quality and availability of ingredients for the dark kitchen.
• Adequate infrastructure - A location with adequate infrastructure, such as electricity, water, and waste management, is important for the smooth operation of a dark kitchen.
• Premises layout - For a hospitality business like a restaurant, the layout of the premises is crucial for creating a welcoming and comfortable atmosphere for customers.
• Space to grow - For an online or e-commerce business, it is important to have room for expansion and growth. A location with available space for future expansion can be beneficial in the long run.
• Demographic of local population - For a transportation business, it is important to consider the demographic of the local population, as this can affect the demand for transportation services and the type of services needed.

This list is obviously not exhaustive and will have to be adapted to the particularities of your project. 

Once you’ve considered the factors above, it’s important to think about the budget that your startup has at its disposal. You’ll need to find a location that meets your business requirements but is affordable enough, especially short-term.

If you opt for renting instead of buying your premises, make sure to take into account the terms of the lease, including aspects such as the duration, rent increase, renewal, and so on.

The lease contractual terms vary greatly from country to country, so be sure to check the terms applicable to your situation and have your lease reviewed by your lawyer before signing.

Choosing your dark kitchen's legal form

The next step to open a dark kitchen is to choose the legal form of your business.

The legal form of a business simply means the legal structure it operates under. This structure outlines how the business is set up and defines its legal obligations and responsibilities.

Why is your dark kitchen's legal form important?

Choosing the legal form for your dark kitchen is an important decision because this will affect your tax obligations, your personal exposure to risk, how decisions are made within the business, the sources of financing available to you, and the amount of paperwork and legal formalities, amongst other things.

The way you set up your business legally will impact your taxes and social contributions, both at a personal level (how much your income is taxed) and at the business level (how much the business's profits are taxed).

Your personal exposure to risk as a business owner also varies based on the legal form of your business. Certain legal forms have a legal personality (also called corporate personality), which means that the business obtains a legal entity which is separate from the owners and the people running it. To put it simply, if something goes wrong with a customer or competitor, for example, with a corporate personality the business gets sued, whereas without it is the entrepreneur personally.

Similarly, some legal forms benefit from limited liability. With a limited liability the maximum you can lose if the business fails is what you invested. Your personal assets are not at risk. However, not all structures protect you in such a way, some structures may expose your personal assets (for example, your creditors might try to go after your house if the business incurs debts and then goes under without being able to repay what it owed).

How decisions are made within the business is also influenced by the legal form of your dark kitchen, and so is the amount of paperwork and legal formalities: do you need to hold general assemblies, to produce annual accounts, to get the accounts audited, etc.

The legal form also influences what sources of financing are available to you. Raising capital from investors requires having a company set up, and they will expect limited liability and corporate personality.

What are the most common legal structures?

It's important to note that the actual names of legal structures for businesses vary from country to country . 

But they usually fall within two main types of structures:

Individual businesses

Individual businesses, such as sole traders or sole proprietorships, are legal structures with basic administrative requirements.

They primarily serve self-employed individuals and freelancers rather than businesses with employees.

The main downside of being a sole trader is that there's usually no legal separation between the business and the person running it. Everything the person owns personally is tied up with the business, which can be risky.

This means that if there are problems or the business goes bankrupt, the entrepreneur's personal assets could be taken by creditors. So, there's a risk of personal liability in case of disputes or financial issues.

It is also not possible to raise equity from investors with these structures as there is no share capital.

Despite the downsides, being a sole proprietorship has some advantages. There is usually very little paperwork to get started, simpler tax calculations and accounting formalities.

Companies are all rounders which can be set up by one or more individuals, working on their own or with many employees.

They are recognized as a distinct entity with their own legal personality, and the liability is usually limited to the amount invested by the owners (co-founders and investors). This means that you cannot lose more than you have invested in the business.

This separation ensures that in legal disputes or bankruptcy, the company bears primary responsibility, protecting the personal assets of the founder(s) and potential investor(s).

How should I choose my dark kitchen's legal structure?

Deciding on the legal structure is usually quite straightforward once you know how many co-founders you'll have, whether you'll have employees, and the expected revenues for the business.

A good business idea will be viable whatever the legal form you choose. How businesses are taxed changes every year, therefore one cannot rely on specific tax benefits tied to a particular structure when deciding to go into business.

One easy way to proceed is to take note of the legal structures used by your top five competitors, and assume you're going with the most commonly chosen option. Once your idea is mature and you're prepared to formally register the business, you can validate this assumption with a lawyer and an accountant.

Can I switch my dark kitchen's legal structure if I get it wrong?

You can switch your legal setup later on, even if it involves selling the old one to a new entity in some cases. However, this comes with extra costs, so it's better to make the right choice from the beginning if you can.

Assess the startup costs for a dark kitchen

The next step in creating a dark kitchen involves thinking about the equipment and staff needed for the business to operate.

After figuring out what you need for your business, your financial plan will reveal how much money you'll need to start and how much you might make (check below for more details).

Because every venture is distinctive, providing a reliable one-size-fits-all budget for launching a dark kitchen without knowing the specifics of your project is not feasible.

Each project has its own particularities (size, concept, location), and only a forecast can show the exact amount required for the initial investment.

The first thing you'll need to consider is the equipment and investments you'll need to get your business up and running.

Startup costs and investments to launch your dark kitchen

For a dark kitchen, the initial working capital requirements (WCR) and investments could include the following elements:

• You will need to invest in kitchen equipment such as ovens, stoves, refrigerators, and freezers to set up your dark kitchen. These are essential for cooking and storing food, and will be a significant capital expenditure.
• In addition to kitchen equipment, you may also need to purchase specialized equipment such as food warmers, delivery bags, and packaging materials. These items are necessary for ensuring that your food stays fresh and hot during delivery.
• Another important capital expenditure for a dark kitchen is the renovation or construction of the physical space. This may include installing ventilation systems, plumbing, and electrical wiring to meet the specific needs of a commercial kitchen.
• You may also need to invest in furniture and fixtures such as work tables, shelving units, and sinks to create an efficient and functional kitchen space. These items are essential for organizing your kitchen and ensuring that it meets health and safety standards.
• Finally, setting up a point-of-sale system or investing in software for managing orders and inventory can be a significant capital expenditure for a dark kitchen. These tools are crucial for streamlining operations and tracking financial performance.

Of course, you will need to adapt this list to your business specificities.

Staffing plan of a dark kitchen

In addition to equipment, you'll also need to consider the human resources required to run the dark kitchen on a day-to-day basis.

The number of recruitments you need to plan will depend mainly on the size of your company.

Once again, this list is only indicative and will need to be adjusted according to the specifics of your dark kitchen.

Other operating expenses for a dark kitchen

While you're thinking about the resources you'll need, it's also a good time to start listing the operating costs you'll need to anticipate for your business.

The main operating costs for a dark kitchen may include:

• Staff Costs: This includes salaries, benefits, and training expenses for your kitchen staff. You will need to budget for both full-time and part-time employees, as well as any overtime or holiday pay.
• Accountancy Fees: As a business owner, you will need to hire an accountant to help you with financial management, tax preparation, and other financial tasks. This will incur a monthly or yearly fee that you should budget for.
• Insurance Costs: Running a dark kitchen comes with its own set of risks, so you will need to purchase insurance to protect your business. This may include general liability insurance, workers' compensation insurance, and property insurance.
• Software Licences: In order to operate efficiently and effectively, you will need to invest in software licenses for your kitchen operations. This may include POS systems, inventory management software, and online ordering platforms.
• Banking Fees: You will need to open a business bank account to manage your finances. This may come with monthly fees for account maintenance, transaction fees, and other banking services.
• Food and Beverage Costs: As a dark kitchen, your primary expense will be the cost of food and beverages. You will need to budget for ingredients, supplies, and any necessary equipment for food preparation.
• Delivery and Packaging Costs: As a delivery-only business, you will need to factor in the cost of delivery services and packaging materials for your food orders.
• Marketing Costs: To attract customers to your dark kitchen, you will need to invest in marketing and advertising. This may include social media ads, email marketing, and other promotional strategies.
• Rent or Utilities: If you are renting a space for your dark kitchen, you will need to factor in monthly rent payments. If you are operating from your own kitchen, you will need to budget for utilities such as electricity, water, and gas.
• Cleaning and Maintenance Costs: As a food business, you will need to maintain a clean and hygienic kitchen. This may include hiring a cleaning service or purchasing cleaning supplies and equipment.
• Waste Management Costs: You will also need to consider the cost of waste management for your kitchen. This may include garbage collection, recycling, and composting services.
• Training and Development Costs: It is important to invest in the training and development of your staff to ensure the quality of your food and service. This may include workshops, courses, and certifications.
• Legal and Licensing Fees: As a business owner, you will need to comply with local laws and regulations. This may include obtaining necessary licenses and permits, which may incur fees.
• Technology Expenses: In addition to software licenses, you may also need to budget for other technology expenses such as computers, printers, and other office equipment.
• Professional Services: Depending on your business needs, you may need to hire professional services such as marketing consultants, graphic designers, or legal advisors. These services may incur fees that should be factored into your operating expenses.

Like for the other examples included in this guide, this list will need to be tailored to your business but should be a good starting point for your budget.

Creating a sales & marketing plan for your dark kitchen

The next step to start a dark kitchen is to think about how you are going to attract and retain customers.

You need to ask yourself the following questions: 

• What actions can be leveraged to attract as many customers as possible?
• How will you then retain customers?
• What resources do you need to allocate for each initiative (human and financial)?
• How many sales and what turnover can you expect to generate in return?

How you will attract and retain customers depends on your ambition, the size of your startup and the nature of your exact concept, but you could consider the following initiatives.

Your sales forecast may also be influenced by seasonality related to your business type, such as fluctuations during busy holiday periods, and your competitive environment.

Building your dark kitchen's financial forecast

The next step to opening a dark kitchen is to create your financial forecast.

What is a dark kitchen financial forecast?

A dark kitchen financial forecast is a forward-looking tool that projects the financial performance of your business over a specific period (usually 3 years for start-ups). 

A forecast looks at your business finances in detail - from income to operating costs and investments - to evaluate its expected profitability and future cash flows.

Building a financial forecast enables you to determine the precise amount of initial financing required to start your dark kitchen.

There are many promising business ideas but very few are actually viable and making a financial forecast is the only way to ensure that your project holds up economically and financially.

Your financial forecast will also be part of your overall business plan (which we will detail in a later step), which is the document you will need to secure financing.

Financial forecasts are used to drive your dark kitchen and make key decisions, both in the pre and post-launch phases:

• Should we go ahead with the business or scrap the idea?
• Should we hire staff or use an external service provider?
• Which development project offers the best growth prospects?

Creating a financial forecast for starting a dark kitchen is an iterative process as you will need to refine your numbers as your business idea matures. 

As your dark kitchen grows, your forecasts will become more accurate. You will also need to test different scenarios to ensure that your business model holds true even if economic conditions deteriorate (lower sales than expected, difficulties in recruiting, sudden cost increases or equipment failure problems, for example).

Once you’ve launched your business, it will also be important to regularly compare your accounting data to your financial projections in order to keep your forecast up-to-date and maintain visibility on future cash flows.

What does a financial projection look like?

Your dark kitchen forecast will be presented using the following financial tables.

The projected P&L statement

The projected P&L statement for a dark kitchen shows how much revenue and profits your business is expected to generate in the future.

The projected balance sheet of your dark kitchen

Your dark kitchen's projected balance sheet provides a snapshot of your business’s financial position at year-end.

The cash flow forecast

A projected cash flow statement for a dark kitchen is used to show how much cash the business is expected to consume or generate in the years to come.

Which solution should you use to make a financial projection for your dark kitchen?

Using an online financial forecasting tool , such as the one we offer at The Business Plan Shop, is the simplest and safest solution for forecasting your dark kitchen.

There are several advantages to using specialised software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• The software helps you identify and correct any inconsistencies in your figures
• You can create scenarios to stress-test your forecast's main assumptions to stress-test the robustness of your business model
• After you start trading, you can easily track your actual financial performance against your financial forecast, and recalibrate your forecast to maintain visibility on your future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

Finding a name and registering your dark kitchen

The next step in starting a dark kitchen is to decide on a name for your entity. 

For starters, you cannot take a name similar to a name already registered by a competitor or protected by a trademark without inevitably risking getting sued. So you’ll need to find a name available, and reserve it before others can.

In addition, you will probably want to use the same name for:

• Your company’s legal name - Example LTD or Example Inc
• Your trading name - Example
• A trademark - Example ® 
• Your company’s domain name - Example.com

The issue is that you’ll need to register your name in three different places almost simultaneously, but with each place having its own timeframes:

• Registering a domain name is instantaneous
• Registering a trademark takes at least 3 months (if your application is accepted)
• Registering a company depends on the country, but it's generally fairly quick

You will therefore be faced with the choice of either registering everything at once in the hope that your name will be accepted everywhere, or proceeding step by step in order to minimise costs, but taking the risk that someone else will register one of the names you wanted in the meantime.

Our advice is to discuss the strategy with your legal counsel (see further down in this guide) and to give priority to your domain names and your registered trademark. You'll always have the option of using a trading name that's different from your company's legal name, and that's not a big deal.  

To check that the name you want is not already in use, you should consult:

• Your country's business register
• The register of trademarks where you wish to obtain protection
• Your preferred search engine
• A domain name reservation company (such as GoDaddy)

If the name you want is available, you can go ahead and register it.

Deciding upon the corporate identity of your dark kitchen

The next step in opening a dark kitchen is to look at your company's visual identity. 

Your company's “visual identity” plays a crucial role in shaping your brand image. It helps you to be recognizable and to stand out from your competitors. 

Although you can define your visual identity yourself, it is generally advisable to call on the services of a designer or marketing agency to achieve a professional result.

At a minimum, you will need to define the following elements: 

Brand guidelines

Business cards, website theme.

Your dark kitchen's logo allows others to quickly identify your company. It will be used on all your communication media (website, social networks, business cards, etc.) and official documents (invoices, contracts, etc.).

In addition to its design, it's important that your logo is available in a variety of colors, so that it can be seen on all media (white, dark background, etc.).

Having brand guidelines enables you to maintain consistency in formatting across all your communications media and official documents. 

Brand guidelines define the font (family and size), design and colours used by your brand. 

In terms of fonts, for example, you may use Roboto in size 20 for your titles and Lato in size 14 for your texts. 

The colours used to represent your brand should generally be limited to five: 

• The main colour, 
• A secondary colour (the accent),
• A dark background colour (blue or black),
• A grey background colour (to vary from white),
• Possibly another secondary colour.

Designing business cards for your dark kitchen is a must, as they will allow you to communicate your contact details to your customers, suppliers, partners, potential recruits, etc. 

In principle, they will include your logo and the brand guidelines that we mentioned above.

In the same way, the theme of your dark kitchen website will be based on your logo and the brand guidelines we mentioned above.

This involves defining the look and feel of your site's main graphic elements:

The next step in opening a dark kitchen is to look in detail at the legal and regulatory formalities.

Although it is possible to do the formalities yourself and draft some of the documents detailed here, The Business Plan Shop recommends that you seek advice on these aspects from a law firm.

Registering a trademark and protecting the intellectual property of your dark kitchen

One of the first things you need to do here is to protect your company's current and future intellectual property.

One way of doing this is to register a trade mark, as mentioned earlier in this guide. Your lawyer will be in a position to do the formalities for you and to help you select the classes (economic activities) and jurisdictions in which you have an interest in obtaining protection.

Your law firm can also advise you on other ways of protecting your company's intellectual property.

Preparing the legal documents for your dark kitchen

Your dark kitchen will need a set of legal and contractual documents to operate on a daily basis. 

Your exact needs in this respect will depend on the country in which you are launching your dark kitchen and the size and legal form envisaged for the company. Once again, we highly recommend having these documents prepared by your lawyer.

As a minimum, we recommend that you have the following documents prepared: 

• Employment contracts 
• General terms and conditions of sale
• General terms and conditions of use for your website
• Privacy Policy for your website
• Cookie Policy for your website

Applying for licences and permits and registering for various taxes

Here too, the list of licences and business permits required for your business to operate legally will depend on the country in which you have decided to start your dark kitchen.

Your law firm will be able to advise you on all the regulations applicable to your business.

Likewise, your accountant will be able to assist you and take care of the formalities involved in complying with the tax authorities.

Writing a business plan for your dark kitchen

The next step in opening a dark kitchen is to draw up your business plan.

What is a dark kitchen's business plan?

A business plan serves as a comprehensive roadmap outlining the objectives, strategies, and key components of your venture. 

There are two essential parts to a business plan:

• A numerical part, the financial forecast we mentioned earlier in this guide, which highlights the amount of initial financing needed to launch the business and its potential profitability over the next 3 to 5 years,
• A written part, which presents in detail the project of creating a dark kitchen and provides the necessary context to enable the reader of the business plan to judge the relevance and coherence of the figures included in the forecast.

Your business plan helps guide decision-making by showcasing your vision and financial potential in a coherent manner.

Your business plan will also be essential when you're looking for financing, as your financial partners will ask you for it when deciding whether or not to finance your project to open a dark kitchen. So it's best to produce a professional, reliable, and error-free business plan.

In essence, your business plan is the blueprint to turn your idea into a successful reality. 

What tool should you use to create your dark kitchen business plan?

If you want to write a convincing business plan quickly and efficiently, a good solution is to use an online business plan software for business start-ups like the one we offer at The Business Plan Shop.

Using The Business Plan Shop to create a business plan for a dark kitchen has several advantages :

• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete startup business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can create scenarios to stress test your forecast's main assumptions
• You can easily track your actual financial performance against your financial forecast by importing accounting data
• You can easily update your forecast as time goes by to maintain visibility on future cash flows

If you're interested in using our solution, you can try The Business Plan Shop for free by signing up here .

Once your business plan has been drafted, you’ll need to think about how you might secure the financing necessary to open your dark kitchen.

The amount of initial financing required will obviously depend on the size of your dark kitchen and the country in which you wish to set up.

Businesses have access to two main categories of financing: equity and debt. Let's take a closer look at how they work and what sources are available.

Equity funding

At a high level, the equity of your dark kitchen will consist of the money that founders and potential investors will invest to launch the company.

Equity is indispensable as it provides the company with a source of long-term (often permanent) financing and demonstrates the founders' conviction in the company's chances of success, since their investments would be lost in the event of bankruptcy.

Equity investors can generate a return on their investment through dividends (which can only be paid out if the company is profitable) or capital gains on the resale of their shares (if the company is attractive enough to attract a buyer).

As you can see, the equity investors' position is extremely risky, since their capital is at risk and can be lost in the event of bankruptcy, and the company must be profitable or resellable before they can hope to generate a return on their investment.

On the other hand, the return on investment that equity investors can expect to generate by investing in a dark kitchen can be very substantial if the company is successful.

This is why equity investors look for start-up ideas with very high growth or profitability potential, in order to offset their risk with a high potential return on investment.

In technical terms, equity includes:

• Share capital and premiums: which represent the amount invested by the shareholders. This capital is considered permanent as it is non-refundable. In return for their investment, shareholders receive shares that entitle them to information, decision-making power (voting in general assembly), and the potential to receive a portion of any dividends distributed by the company.
• Director loans: these are examples of non-permanent capital advanced to the company by the shareholders. This is a more flexible way of injecting some liquidity into your company than doing so as you can repay director loans at any time.
• Reserves: these represent the share of profits set aside to strengthen the company's equity. Allocating a percentage of your profits to the reserves can be mandatory in certain cases (legal or statutory requirement depending on the legal form of your company). Once allocated in reserves, these profits can no longer be distributed as dividends.
• Investment grants: these represent any non-refundable amounts received by the company to help it invest in long-term assets.
• Other equity: which includes the equity items which don't fit in the other categories. Mostly convertible or derivative instruments. For a small business, it is likely that you won't have any other equity items.

The main sources of equity are as follows:

• Money put into the business from the founders' personal savings.
• Money invested by private individuals, which can include business angels, friends, and family members.
• Funds raised through crowdfunding, which can take the form of either equity or donations (often in exchange for a reward).
• Government support to start-ups, for example, loans on favourable terms to help founders build up their start-up capital.

Debt funding

The other way to finance your dark kitchen is to borrow. From a financial point of view, the risk/return profile of debt is the opposite of that of equity: lenders' return on investment is guaranteed, but limited.

When it borrows, your company makes a contractual commitment to pay the lenders by interest, and to repay the capital borrowed according to a pre-agreed schedule.

As you can see, the lenders' return on investment is independent of whether or not the company is profitable. In fact, the only risk taken by lenders is the risk of the company going bankrupt.

To avoid this risk, lenders are very cautious, only agreeing to finance when they are convinced that the borrowing company will be able to repay them without problems.

From the point of view of the company and its stakeholders (workforce, customers, suppliers, etc.), debt increases the risk of the venture, since the company is committed to repaying the capital whether or not it is profitable. So there's a certain distrust towards heavily indebted companies.

Companies borrow in two ways:

• Against their assets: this is the most common way of borrowing. The bank finances a percentage of the price of an asset (a vehicle or a building, for example) and takes the asset as collateral. If the company cannot repay, the bank seizes the asset and sells it to limit its losses.
• Against their future cash flows: the bank reviews the company's financial forecast to estimate how much the company can comfortably borrow and repay, and what terms (amount, interest rate, term, etc.) the bank is prepared to offer given the credit risk posed by the company.

When creating a dark kitchen, the first option is often the only one available, as lenders are often reluctant to lend on the basis of future cash flows to a structure that has no track record.

The type of assets that can be financed using the first method is also limited. Lenders will want to be sure that they can dispose of foreclosed assets if needed, so they need to be assets that have an established second-hand market.

That being said, terms and conditions also depend on the lender: some banks are prepared to finance riskier projects, and not all have the same view of your company's credit risk. It also depends on the collateral you can offer to reduce risk, and on your relationship with the bank.

In terms of possible sources of borrowing, the main sources here are banks and credit institutions.

In some countries, it's also possible to borrow from private investors (directly or via crowdlending platforms) or other companies, but not everywhere.

Takeaways on how to finance a dark kitchen

Multiple options are available to help you raise the initial financing you need to launch your dark kitchen.

There are two types of financing available to companies. To open a dark kitchen, an equity investment will be required and may be supplemented by bank financing.

Launching your dark kitchen is the beginning of an exciting entrepreneurial adventure, and the culmination of your efforts to turn your idea into a reality. But this is also when the real work begins.

As you know, nearly half of all new businesses fail, so you'll need to do everything you can to make your business sustainable right from the start.

Estimating the future financial performance of a dark kitchen inevitably involves a degree of uncertainty. That's why we recommend simulating several scenarios: a central case with the most likely scenario, an optimistic case, and a pessimistic case designed to test the limits of your business model.

Normally, your company's actual financial performance, observed after you start trading, should fall somewhere between your pessimistic and optimistic cases.

The important thing will be to quickly measure and compare this actual performance with the figures in your forecast to see where you stand, then update the forecast to re-estimate the future cash flows and cash position of your dark kitchen.

This forward-looking financial management exercise is the only way to know where you stand and where you're going. And, when your figures fall short of expectations, to quickly implement actions to turn things around before the company runs out of cash.

There's nothing more dangerous than waiting until you have your accounts, which takes up to nine months after the end of your financial year (if you are in the UK, abroad your mileage will vary), to then realize that you're not on the right track and that your dark kitchen won't have enough cash to operate over the next twelve months.

This is where using a forecasting solution that integrates actuals vs. forecast tracking, like The Business Plan Shop's financial dashboards do, can simplify the financial management of your business and help reduce the risk associated with your start-up project.

• To open a dark kitchen you need to go through each of the 15 steps we have outlined in this guide.
• The financial forecast is the tool that will enable you to check that your project can be profitable and to estimate the investment and initial financing requirements.
• The business plan is the document that your financial partners will ask you to produce when seeking finance.
• Once you have started trading, it will be essential to keep your financial forecasts up to date in order to maintain visibility of the future cash flow of your dark kitchen.
• Leveraging a financial planning and analysis platform that seamlessly integrates forecasts, business plans, and real-time performance monitoring — like The Business Plan Shop — simplifies the process and mitigates risks associated with launching a business.

We hope this practical guide has given you a better understanding of how to open a dark kitchen. Please do not hesitate to contact our team if you have any questions or if you would like to share your experience of setting up your own business.

Also on The Business Plan Shop

• Start-up business plan templates

Do you know someone who is thinking about opening a dark kitchen? Share our guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Dark kitchen business plan : guide et exemple pratique

Accueil » Dark kitchen business plan : guide et exemple pratique

• Widad Medrek

Table des matières

Vous cherchez un exemple de business plan pour une dark kitchen? Vous souhaitez créer votre propre business plan avant de vous lancer dans une aventure entrepreneur food? Nous vous expliquerons tout dans cet article, la dark kitchen et son fonctionnement n’aura plus de secret pour vous.

Qu’est-ce qu’une dark kitchen ?

Dark kitchen : définition.

Une dark kitchen (aussi appelée cuisine fantôme, ghost kitchen, black kitchen, restaurant virtuel, cuisine virtuelle ou encore cuisine sans restaurant) est un type d’entreprise de restauration qui fonctionne sans avoir de salle à manger ou de magasin physique où les clients peuvent venir s’asseoir et manger. Au lieu de cela, les dark kitchens se concentrent uniquement sur la préparation de plats pour la livraison ou à emporter . Les dark kitchens sont souvent situés dans des zones moins chères et peuvent opérer à partir de cuisines commerciales, de cuisines partagées, ou d’espaces de cuisine dédiés. Les plats sont préparés par des chefs professionnels ou non et sont généralement proposés aux clients via des services de livraison.

Avantages et défis des dark kitchens

Processus de fonctionnement d’une dark kitchen.

Une dark kitchen fonctionne principalement de manière similaire à une cuisine traditionnelle, à la différence que les plats sont préparés exclusivement pour la livraison ou à emporter .

Voici un schéma simplifié qui représente le fonctionnement d’une dark kitchen :

Prise de commande

Les clients passent leur commande via une plateforme de livraison en ligne ou une application mobile.

Transmission de la commande

Les commandes sont transmises aux cuisiniers dans la dark kitchen.

Préparation des plats

Les cuisiniers préparent les plats selon les demandes des clients, en utilisant des ingrédients frais et de qualité.

Les plats sont soigneusement emballés pour le transport, en utilisant des matériaux écologiques et durables.

Les plats sont livrés aux clients par un service de livraison dédié, ou directement par la dark kitchen.

Le processus se répète pour chaque nouvelle commande, permettant à la dark kitchen de servir un grand nombre de clients en même temps.

Est-ce-qu’une dark kitchen est un business rentable ?

Comme pour toute entreprise, il est difficile de répondre de manière ferme à cette question. La réussite d’une affaire dépend par exemple de la situation géographique, la concurrence sur les plateformes, les coûts de location et d’équipement, les coûts d’exploitation, etc.

Force est de constater que les dark kitchens poussent comme des champignons dans les grandes villes du monde entier. En effet, grâce à la réduction des coûts liés à l’absence d’un espace de vente au détail et à la concentration sur la qualité de la nourriture, les dark kitchens peuvent souvent offrir des prix compétitifs et une expérience culinaire de haute qualité pour les clients, ce qui peut conduire à une augmentation de la demande.

Aussi, le modèle d’entreprise des dark kitchens est plus flexible que celui des restaurants traditionnels. Les propriétaires peuvent ajuster rapidement leur menu et leur offre pour répondre aux demandes des clients ou pivoter s’ils réalisent que leur concept n’a pas de succès.

Les étapes clés pour créer une dark kitchen

Faire des recherches.

Pour créer votre dark kitchen, vous devez d’abord réaliser une étude de marché pour évaluer la demande pour ce type de service dans votre région. Examinez la concurrence locale et les tendances du marché pour vous assurer que votre entreprise sera compétitive.

Choisir un emplacement

Une fois que vous avez une idée de la demande et de la concurrence locale, vous pouvez choisir un emplacement pour votre dark kitchen. Optez pour une cuisine partagée, une cuisine commerciale ou un espace de cuisine dédié, en fonction de votre budget et de vos besoins.

Obtenir les autorisations nécessaires

Avant de commencer à opérer votre dark kitchen, vous devez obtenir toutes les autorisations nécessaires auprès des autorités locales, y compris les permis de cuisine et d’exploitation.

Équiper votre cuisine

Équipez votre cuisine avec tout ce dont vous avez besoin pour préparer les plats que vous proposerez à vos clients, y compris les ustensiles de cuisine, les équipements de cuisson et les matériaux d’emballage.

Mettre en place des partenariats de livraison

Pour livrer vos plats aux clients, vous devez mettre en place des partenariats avec des services de livraison en ligne tels que Uber Eats, Deliveroo ou Glovo, ou envisager d’utiliser votre propre service de livraison.

Élaborer un menu attractif

Pour attirer les clients, vous devez élaborer un menu attractif et varié qui se démarque de la concurrence. Établissez des prix compétitifs qui vous permettront de couvrir vos coûts tout en offrant une valeur ajoutée aux clients.

Promouvoir votre entreprise

Pour attirer les clients, vous devez promouvoir votre entreprise en ligne via les réseaux sociaux et les plateformes de livraison, en mettant en avant votre menu, vos prix attractifs et votre service de qualité.

Rejoignez Fojo

Fojo est un dojo de la food, un temple pour les passionnés de la cuisine, de l’immobilier et du terrain, qui souhaitent décupler leur croissance. Nous proposons une offre clé en main pour les restaurateurs, les traiteurs et les food entrepreneurs qui souhaitent s’installer dans une nouvelle zone de chalandise ou créer une marque virtuelle dans des cuisines équipées et privées.

Fojo se trouve entre la dark kitchen et le foodcourt .

Nous sommes une équipe soudée et éclectique, qui réunit des restaurateurs, des experts en image de marque, des plateformes de livraison, de l’immobilier et de la conception de cuisines. Nous avons développé une expertise sur les différents enjeux de la restauration, de la conception de cuisines et de l’évolution des tendances culinaires. Nous mettons à disposition plusieurs cuisines dans Paris et en proche banlieue.

En rejoignant Fojo, vous bénéficiez d’un accompagnement sur mesure pour vous aider à performer au maximum dans le domaine de la livraison et de la vente à emporter. Nous vous donnons toutes les clés pour offrir de la visibilité à votre marque, décupler votre potentiel de croissance et optimiser votre logistique en cuisine.

En choisissant Fojo, vous rejoignez une communauté de passionnés, une grande famille qui grandit chaque jour, composée de notre équipe et de tous nos collaborateurs. Nous incubons au sein de nos dojos tous types de restaurateurs et partons du principe que toutes les bonnes pratiques sont bonnes à échanger et mutualiser.

Comment rédiger le business plan d’une dark kitchen ?

Quand rédiger un business plan pour une dark kitchen .

Rédiger un business plan pour votre dark kitchen peut vous aider à clarifier votre vision et vos objectifs, à déterminer les étapes nécessaires pour atteindre ces objectifs, à identifier les obstacles potentiels et les risques, et à élaborer un plan d’action pour les surmonter. Cela peut vous aider à être mieux préparé à lancer votre entreprise et à la faire croître avec succès. Le processus de rédaction du business plan vous oblige également à faire des recherches approfondies sur votre marché cible, votre concurrence, vos besoins en équipement et en personnel, vos coûts de fonctionnement et votre modèle économique. Cela vous permettra de prendre des décisions éclairées et de réduire les risques d’ erreur de débutant .

Pour vous faire financer

Avoir un business plan solide peut également aider à convaincre les investisseurs potentiels ou les prêteurs que votre entreprise a un potentiel de rentabilité solide et qu’elle est digne de leur soutien financier. Le plan d’affaires doit démontrer que vous avez effectué une recherche approfondie et que vous comprenez les défis et les opportunités de votre marché cible. Il doit également inclure des projections financières solides, des détails sur les coûts de démarrage et les besoins en capital, ainsi qu’une analyse des risques et des mesures que vous prendrez pour les atténuer. En rédigeant un business plan professionnel et convaincant, vous augmentez vos chances de réussite dans la recherche de financements pour votre entreprise de dark kitchen.

Exemple de business plan de dark kitchen

Imaginons que nous devons faire un business plan pour ouvrir une dark kitchen dans le milieu du sandwich au homard, du nom de Sand’ster.

Sand’ster est une dark kitchen spécialisée dans les sandwichs au homard. Notre entreprise a pour but de fournir des repas savoureux et de qualité supérieure à nos clients. Nous nous concentrons sur la préparation et la livraison de sandwichs au homard frais et locaux, ainsi que sur la promotion de l’expérience culinaire unique que nous offrons. Nous ciblons les clients qui souhaitent déguster des sandwichs au homard de qualité supérieure sans avoir à sortir de chez eux. 

Présentation de l’entreprise

Sand’ster est une entreprise de restauration rapide basée à [ville]. Nous sommes spécialisés dans la préparation de sandwichs au homard frais et locaux, que nous livrons à domicile ou en entreprise. Nos clients peuvent commander facilement en ligne via notre site web ou nos partenaires de livraison tels que X, Y et Z. Notre entreprise a été créée par [nom du fondateur], qui a une expérience de plus de [nombre d’années] ans dans le secteur de la restauration. Nous avons commencé à opérer en [mois et année] et avons connu une croissance constante depuis lors. Nous avons actuellement [nombre de cuisines] cuisines équipées dans [ville], et prévoyons d’élargir notre présence à d’autres villes à l’avenir. 

Offre de produits et services

Notre offre de produits se concentre sur les sandwichs au homard de qualité supérieure, préparés avec des ingrédients locaux frais. Nous proposons une variété de sandwichs au homard, y compris des options classiques telles que le homard grillé au beurre ou à la mayonnaise, ainsi que des options plus créatives telles que le homard croustillant à la sauce épicée. Nous proposons également des options végétariennes et sans gluten pour répondre aux besoins de nos clients. Nos sandwichs sont disponibles en différentes tailles, ce qui permet aux clients de choisir la portion qui convient le mieux à leur appétit. En plus de notre offre de produits, nous proposons également des services de livraison rapide et fiable à nos clients. Nous nous engageons à fournir des repas de qualité supérieure à nos clients dans les délais impartis. 

Marché cible

Nous ciblons les clients qui recherchent des repas de qualité supérieure, pratiques et faciles à commander en ligne. Nos clients sont principalement des professionnels occupés et des familles qui souhaitent profiter de sandwichs au homard frais et savoureux sans avoir à sortir de chez eux. Nous avons également identifié un marché potentiel pour les événements privés et professionnels, tels que les mariages, les fêtes d’entreprise et les réunions de famille. Nous proposons des plateaux de sandwichs personnalisés pour répondre à ces besoins spécifiques.

Stratégie de marketing

Nous utilisons principalement des plateformes de livraison tierces telles que X, Y et Z pour atteindre nos clients. Nous avons également mis en place une stratégie de marketing numérique, qui comprend des campagnes publicitaires sur les réseaux sociaux, l’optimisation de notre site web pour le référencement et la création de contenu sur les réseaux sociaux pour promouvoir nos offres et interagir avec notre public cible. Nous travaillons en étroite collaboration avec les plateformes de livraison pour garantir que nos produits soient mis en avant et que les temps de livraison soient respectés. Nous offrons également des promotions et des remises pour encourager les clients à commander régulièrement chez nous. Nous avons également établi des partenariats avec des entreprises locales et des influenceurs sur les réseaux sociaux pour accroître notre visibilité et attirer de nouveaux clients. Enfin, nous sommes en train de développer des initiatives de marketing hors ligne, telles que la participation à des événements culinaires et la distribution de dépliants dans des endroits stratégiques de la ville. 

Plan financier

Le démarrage de Sand’ster nécessitera un investissement initial de X euros pour l’achat d’équipements de cuisine et de matières premières, ainsi que pour la location d’un espace de production. Nous prévoyons également des coûts de marketing pour promouvoir notre entreprise et acquérir de nouveaux clients. Nous prévoyons de générer des revenus principalement grâce aux ventes de nos sandwiches au homard, avec un prix moyen de vente de X euros par sandwich. Nous prévoyons également de proposer des boissons et des accompagnements pour augmenter notre chiffre d’affaires. Nous avons effectué une analyse financière approfondie pour déterminer nos coûts de production, nos marges bénéficiaires et nos coûts d’exploitation. Nous avons calculé que nous devrons vendre X sandwiches par jour pour atteindre le seuil de rentabilité et X sandwiches par jour pour réaliser un bénéfice net de X euros par mois. Nous avons établi des projections financières pour les 3 premières années d’activité de Sand’ster, en prenant en compte la croissance attendue de notre entreprise et l’évolution du marché de la livraison de nourriture. Nous prévoyons une croissance annuelle de X% et un chiffre d’affaires annuel de X euros d’ici la fin de la troisième année. 

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• Location de cuisine professionnelle
• Location de laboratoire de cuisine professionnel
• Mentions légales
• Conditions Générales de Vente
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