NEWH - Winter 2021 - 12

GUEST PERSPECTIVE
Ghost Kitchens in the Lodging
Industry: An F&B Strategy for Hotels
BY FREDERICK DEMICCO AND
ISAIAH MORROW
SCHOOL OF HOTEL AND RESTAURANT
MANAGEMENT, NORTHERN ARIZONA
UNIVERSITY
Frederick DeMicco
A
ghost kitchen is a professional food preparation
and cooking facility that serves customers
exclusively by delivery. Ghost kitchens do not
have a physical location that customers can
enter (yet). The concept of ghost kitchens strips down the
traditional dining establishment by removing dining areas and
fancy décor. Instead, they serve as kitchens for restaurants to
prepare food to deliver to customers. Several restaurants can
operate out of the same ghost kitchen, either working from the
same facility or breaking the space into separate areas. Ghost
kitchens have emerged as a business model due to the rapid
growth in consumer demand for restaurant delivery. Lower
overhead costs, ability to change, and sociality changes are
reasons why the ghost kitchen model is thriving; the concept
has even entered hotels and catering.
Apps like GrubHub, Postmates, and DoorDash have ushered
in the golden age of delivery in the United States, growing
300 percent faster than dine-in over the last five years. Over
half of U.S. consumers now utilize delivery apps at least once
a week as of 2020. While in-restaurant dining numbers have
stayed flat in recent years, digital orders have risen by 20
percent. Food delivery is projected to become a $75.9 billion
business by 2022.
Ghost kitchen benefits
Opening a fully staffed restaurant is a significant investment.
Commercial real estate prices in large cities like New York,
Los Angeles, and Washington, DC have made it nearly
impossible for small business to keep their doors open. The
ghost kitchen business model has a lower overhead cost and
does not have to pay higher rent like a traditional restaurant.
A Chipotle restaurant, for example, has to dedicate 75 of its
space to seating, while 90 percent of its customers grab and
go. By comparison, a ghost kitchen can open inside a kitchen
with as little as 200 square feet of space and operate a viable
restaurant business with a minimal footprint. Cracker Barrel,
for instance, recently turned one of its restaurant's units into a
strictly off-premises catering operation type of ghost kitchen.
Ghost kitchens can switch menus rapidly. Not having an
actual storefront means consumers do not have consistent
expectations. For instance, a ghost kitchen can quickly drop
a certain menu concept after encountering lower-thanContinued
on p. 14 〉〉〉
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NEWH - Winter 2021

Table of Contents for the Digital Edition of NEWH - Winter 2021

Contents
President's Letter
News
Guest Perspecitve
Equity, Inclusion, and Diversity
Who's Who
Conference Roundup
Have You Seen
Scholarships
Interview: Isadore Sharp
Sustainability
Q&A: Taylor Hoesley
Q&A: Tory Knoph
Q&A: Penny McPeak
Cover Story
Project: The Alloy King of Prussia
Project: Hakkasan Bodrum
Project: The Clift Royal Sonesta Hotel
Project: AC Hotel Washington DC Convention Center
Chapter Highlights
Save the Date
New Members
Partner Profiles
Sponsor Index
NEWH - Winter 2021 - FC
NEWH - Winter 2021 - Cover2
NEWH - Winter 2021 - Contents
NEWH - Winter 2021 - President's Letter
NEWH - Winter 2021 - 5
NEWH - Winter 2021 - 6
NEWH - Winter 2021 - 7
NEWH - Winter 2021 - News
NEWH - Winter 2021 - 9
NEWH - Winter 2021 - 10
NEWH - Winter 2021 - 11
NEWH - Winter 2021 - Guest Perspecitve
NEWH - Winter 2021 - 13
NEWH - Winter 2021 - 14
NEWH - Winter 2021 - 15
NEWH - Winter 2021 - Equity, Inclusion, and Diversity
NEWH - Winter 2021 - 17
NEWH - Winter 2021 - 18
NEWH - Winter 2021 - 19
NEWH - Winter 2021 - Who's Who
NEWH - Winter 2021 - 21
NEWH - Winter 2021 - 22
NEWH - Winter 2021 - 23
NEWH - Winter 2021 - 24
NEWH - Winter 2021 - 25
NEWH - Winter 2021 - 26
NEWH - Winter 2021 - 27
NEWH - Winter 2021 - 28
NEWH - Winter 2021 - 29
NEWH - Winter 2021 - 30
NEWH - Winter 2021 - 31
NEWH - Winter 2021 - Conference Roundup
NEWH - Winter 2021 - 33
NEWH - Winter 2021 - 34
NEWH - Winter 2021 - 35
NEWH - Winter 2021 - Have You Seen
NEWH - Winter 2021 - 37
NEWH - Winter 2021 - 38
NEWH - Winter 2021 - 39
NEWH - Winter 2021 - 40
NEWH - Winter 2021 - 41
NEWH - Winter 2021 - 42
NEWH - Winter 2021 - 43
NEWH - Winter 2021 - 44
NEWH - Winter 2021 - 45
NEWH - Winter 2021 - Scholarships
NEWH - Winter 2021 - 47
NEWH - Winter 2021 - Interview: Isadore Sharp
NEWH - Winter 2021 - 49
NEWH - Winter 2021 - 50
NEWH - Winter 2021 - 51
NEWH - Winter 2021 - Sustainability
NEWH - Winter 2021 - 53
NEWH - Winter 2021 - Q&A: Taylor Hoesley
NEWH - Winter 2021 - 55
NEWH - Winter 2021 - Q&A: Tory Knoph
NEWH - Winter 2021 - 57
NEWH - Winter 2021 - Q&A: Penny McPeak
NEWH - Winter 2021 - 59
NEWH - Winter 2021 - Cover Story
NEWH - Winter 2021 - 61
NEWH - Winter 2021 - Project: The Alloy King of Prussia
NEWH - Winter 2021 - 63
NEWH - Winter 2021 - 64
NEWH - Winter 2021 - 65
NEWH - Winter 2021 - Project: Hakkasan Bodrum
NEWH - Winter 2021 - 67
NEWH - Winter 2021 - 68
NEWH - Winter 2021 - 69
NEWH - Winter 2021 - Project: The Clift Royal Sonesta Hotel
NEWH - Winter 2021 - 71
NEWH - Winter 2021 - 72
NEWH - Winter 2021 - 73
NEWH - Winter 2021 - Project: AC Hotel Washington DC Convention Center
NEWH - Winter 2021 - 75
NEWH - Winter 2021 - 76
NEWH - Winter 2021 - 77
NEWH - Winter 2021 - Chapter Highlights
NEWH - Winter 2021 - 79
NEWH - Winter 2021 - 80
NEWH - Winter 2021 - 81
NEWH - Winter 2021 - 82
NEWH - Winter 2021 - 83
NEWH - Winter 2021 - 84
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NEWH - Winter 2021 - 94
NEWH - Winter 2021 - 95
NEWH - Winter 2021 - 96
NEWH - Winter 2021 - 97
NEWH - Winter 2021 - Save the Date
NEWH - Winter 2021 - 99
NEWH - Winter 2021 - New Members
NEWH - Winter 2021 - 101
NEWH - Winter 2021 - 102
NEWH - Winter 2021 - 103
NEWH - Winter 2021 - Partner Profiles
NEWH - Winter 2021 - 105
NEWH - Winter 2021 - Sponsor Index
NEWH - Winter 2021 - Cover3
NEWH - Winter 2021 - Cover4
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