Furlough Brothers found new opportunities with ghost kitchens
Overview
Furlough Brothers found new opportunities in the height of the pandemic. These hospitality vets were able to transform from furlough to success by building their cheesesteak brand with ghost kitchens. Furlough Brothers is owned by Michael Youssef and Sam Kaiser, who both bring a diverse background in the hospitality industry.
The Furlough Brothers menu features traditional cheesesteaks as well as their own twists on classic dishes such as an Al Pastor Sandwich, Bulgogi Bowl, and their own twist on a classic Cobb Salad.
What made CloudKitchens the right fit for their restaurant brand?
Before Michael and Sam created Furlough Brothers with CloudKitchens, they struggled to decide their next move after both being furloughed in the hospitality industry due to COVID-19.
They always wanted to create something of their own, and that's where Furlough Brothers was born. They were able to get started much faster in a ghost kitchen/commercial kitchen than they would have with a traditional brick and mortar. Here's what Michael and Sam have to say about their CloudKitchens experience and why they recommend partnering with us:
“We can generate a lot of orders out of one single kitchen with just two of us. It’s a good way to start your delivery business.”
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What is a ghost kitchen?
Ghost kitchens, also known as dark kitchens or virtual kitchens, are commercial kitchens built for food delivery. They’re located within the delivery radius of a high volume of online customers, rather than high foot traffic areas. With ghost kitchens, there’s no physical storefront or dining area, so you only need a few back-of-house staff members to fulfill online orders.
How does a ghost kitchen work?
In a ghost kitchen, your restaurant is focused on delivery rather than dine-in. When eaters order your food online, you’ll prepare it from your ghost kitchen, and hand it off to a fulfillment team to get the order over to the right delivery driver. This gives restaurateurs a low cost, high efficiency model to get the most out of delivery.
Are ghost kitchens profitable?
Yes. Ghost kitchens allow restaurateurs to increase profitability by maintaining the essential elements of a restaurant while cutting costs on labor, overhead, and wasted food while reaching a higher volume of customers ordering online. Plus, you can run multiple virtual brands out of a single ghost kitchen to increase revenue without the extra overhead.
Why are ghost kitchens so popular?
Ghost kitchens are rising in popularity because they’re a lower cost alternative to operating a traditional restaurant. They’re also focused on delivery, which has grown 300% faster than dine-in since 2014. That means restaurateurs are using ghost kitchens to future-proof their business and accelerate growth.
How does a ghost kitchen help your restaurant grow?
Ghost kitchens help restaurateurs grow their business by doing delivery right. The way we dine has changed, and ghost kitchens allow restaurant operators to capture food delivery demand without sacrificing their bottom line. They’re also a great way to expand to new markets without spending time and money on a traditional restaurant buildout. You can easily expand your restaurant brand to different cities across the country such as Los Angeles or New York.
How much do ghost kitchens cost?
The cost of ghost kitchens varies by market, space, and services. Compared to a traditional restaurant, they’re a much lower cost alternative on both upfront capital and ongoing operating costs. You can get started in a ghost kitchen with as little as $30K, instead of $1M+ for brick and mortar buildout.
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