Everything you need to know about virtual franchise outlets.

The food industry has faced unprecedented challenges since the onset of the COVID-19 pandemic, with many restaurant owners having to pivot to take-out, mobile apps for ordering, and delivery services.

Small and independent restaurants have been hit especially hard, with 85% reporting significant declines in sales. To survive, many of these businesses have had to embrace new technologies and innovative solutions.

One such solution is virtual franchise outlets. This commercial kitchen space is leased out to restaurants and brands for the purpose of preparing and delivering food.

Operating exclusively through an online ordering system, mobile ordering app, or website platforms, virtual franchise outlets provide an extra revenue stream for struggling restaurants that have excess capacity in their kitchens.

By reducing overhead costs, fostering customer loyalty, increasing efficiency, accessing specialized equipment, and receiving marketing and branding support, virtual franchise outlets offer a cost-effective and flexible solution for businesses looking to stay afloat and grow revenue even during difficult times.

In this post, we'll explore the benefits of virtual franchise outlets and how they can provide and create an extra revenue stream for struggling restaurants.

What is a Virtual Franchise Outlet?

A virtual franchise outlet, also known as a virtual kitchen service provider, is a commercial kitchen space that is leased out to restaurants for the purpose of preparing and delivering food.

Unlike a traditional brick-and-mortar restaurant, a virtual franchise outlet does not have a physical storefront or dining area. Instead, restaurants operate exclusively through online ordering platforms, such as delivery apps or their own branded mobile app, as well as websites, and the food is prepared and packaged for delivery or pickup from guests in the virtual kitchen.

This concept allows many restaurants to expand their reach and generate additional revenue streams without the high overhead costs of opening a physical location, while also helping struggling restaurants optimize their operations and keep up with changing consumer demands in the digital age.

Benefits of virtual franchise outlets

#1 Extra revenue stream

Virtual franchise outlets provide an extra revenue stream for food businesses that have excess capacity in their kitchens. By leasing out their kitchen space to other restaurants, struggling restaurants and catering companies can generate additional income and keep their operations running.

This model also allows for convenience and a wider variety of food options to be offered to customers, as multiple businesses and restaurants can operate out of the same kitchen space.

Additionally, virtual franchise outlets can provide opportunities for entrepreneurs to start their food delivery businesses with lower startup costs.

#2 Low overhead costs

Virtual franchise outlets offer lower overhead costs compared to opening a physical location. By operating out of a shared kitchen space, many restaurants can save on expenses such as rent, utilities, and equipment expenses. This can be especially beneficial for struggling food businesses that are looking to reduce their expenses and stay afloat during difficult times.

Shared kitchen spaces also provide an opportunity for food entrepreneurs to network with other restaurant businesses, share resources, and collaborate on projects, which can lead to new partnerships and increased exposure for their restaurant business or brand.

Additionally, these spaces often come equipped with professional-grade equipment, software, and facilities that may not be affordable or convenient for small businesses to purchase on their own.

#3 Increased efficiency

By sharing a kitchen space, food businesses can increase their efficiency and reduce their waste. For example, a struggling bakery that only sells cakes and pastries in the morning can lease out its kitchen space to a virtual franchise outlet that specializes in savory items for lunch and dinner. This can help reduce food waste and increase the productivity of the kitchen.

By doing online orders and leasing out the kitchen space, the bakery can also generate additional income and potentially attract new customers who may be interested in the virtual franchise's offerings. This arrangement can also create a mutually beneficial partnership between restaurant owners and the two businesses.

#4 Access to specialized equipment

Virtual franchise outlets come equipped with all the necessary equipment and facilities, such as commercial-grade ovens, refrigeration, and food prep stations, which can be expensive to purchase and maintain. This can be especially convenient and beneficial for struggling food businesses that may not have the funds to invest in specialized equipment.

Additionally, virtual franchise outlets also provide access to established restaurant experience, branding, marketing, and operational support, which can help struggling food businesses increase their visibility and profitability in a competitive market.

#5 Marketing and branding support

Virtual franchise outlets can provide marketing and branding support directly to their customers, helping struggling food businesses promote their products and reach new customers. For example, a virtual franchise outlet can help a struggling bakery launch a new line of cupcakes by using discounts and providing assistance with logo design, menu development, and social media marketing.

In addition, virtual franchise outlets can also offer operational support services such as supply chain management, inventory control, and staff training to help struggling food businesses streamline their operations and improve efficiency. This can lead to cost savings and increased profitability for the business in less time.

Overall, virtual franchise outlets offer a cost-effective and flexible solution for struggling food businesses that have excess capacity in their kitchens. By generating an extra profit stream, reducing overhead costs, increasing efficiency, accessing specialized equipment, and receiving marketing and branding support, struggling food businesses can stay afloat and even grow during difficult times.

How to get started with virtual franchise brands

One example of a company offering the best solution for virtual restaurant brands is Host Kitchen Brands. Their turnkey solution provides food businesses with virtual brand concepts, customizable websites and menus, training and support services, and access to a digital platform.

With three easy steps, food businesses can lease a virtual franchise outlet, prepare and deliver food, and accept orders to generate extra profit without the high overhead expenses of opening a physical location.

1. Choose a virtual brand concept
   Host Kitchen Brands offers a variety of virtual brand concepts to choose from, including fries, game day food, or burgers.
2. Receive training
   Host Kitchen Brands offers ready-to-go brands that provide trending and hassle-free menus. First, HKB will onboard you with their ingredient suppliers as well as the digital sales channels.
   Next, they'll train your team on how to prepare the food and how to increase kitchen efficiency and grow sales.
3. Accept orders and prepare the items
   Online orders coming from various platforms will be sent to your kitchen. Your staff prepares the items following the HKB training instructions and puts it in the brand's proprietary packaging that they provide.

So, if you're a struggling food business looking to stay afloat during these difficult times, consider leasing a virtual franchise outlet or site and taking advantage of the many benefits it offers. Who knows, you might just come out the other side with a new revenue stream and a fresh approach to your restaurant business.

Maximize your business potential with add-ons

Now that you are familiar with virtual franchise outlets, let's look into software solutions that can help you streamline your operations and increase your sales: EasyOrder.

EasyOrder is an online ordering system designed specifically for food businesses. It allows you to receive and manage orders from multiple platforms, such as your own site, direct ordering website, or mobile phone app, all in one place. With EasyOrder, you no longer have to manually input orders from different sources, which can be time-consuming and prone to errors.

#1 Customize

One of the best things about EasyOrder is that it's highly customizable. You can set up and customize the app for your restaurant with menu, prices, and specials according to your preferences, and make changes in real time. You can also choose from a variety of order types, such as pickup or delivery, and specify your delivery zones and fees. This flexibility allows you to adapt to your customer's needs and preferences and keep up with the competition.

#2 Analyze

Another benefit of EasyOrder is that it provides you with detailed analytics and reports. You can track your sales, profit, and customer data and use this information to make informed decisions about your business. You can also identify trends and patterns in your orders and adjust your menu, pricing, and loyalty program accordingly. This data-driven approach can help you optimize your operations and maximize your profits.

#3 Make customers happy

EasyOrder is also user-friendly for both you and your customers. Customers can easily browse your menu, place their orders, and pay online without having to call or wait in line. You can manage your orders and communicate with your customers directly through a simple dashboard that's accessible from any device. This ease of use can help you attract and retain repeat customers, and build a loyal following.

In summary, EasyOrder is an excellent add-on for any food business, starting with a virtual franchise outlet or restaurant online ordering system. EasyOrder provides you with your own mobile ordering app and your own direct ordering website.

It can help you streamline your operations, increase your sales, improve your customer experience, and introduce a loyalty program.

With EasyOrder, you can focus on what you do best—preparing delicious items—and let the online ordering system take care of the rest.