Look out! Ghosts are coming.
I’m talking about ghost kitchens.
A ghost kitchen, also known as a cloud kitchen, is a restaurant without a dine-in option.
It’s also a restaurant without a takeout window.
Customers don’t even need to visit this restaurant in person.
All food orders are online orders submitted via smartphone apps.
The mounting popularity of ghost kitchens is getting hotter! The market is projected to reach $139.4 billion by 2028.
And food delivery apps stand to reap the gains!
You may already have exposure to this sector in your portfolio if you invested in BUZZ, but if not, or you want more — Paul just revealed his top pick for the food delivery app boom.
More on that in a moment.
First, let me tell you how the rise of the ghost kitchen spells an upcoming boom for food delivery app companies.
1 Big Burger Joint Is Ghosting = Delivery App Boom for You
A ghost kitchen still has a physical commercial kitchen that is staffed by chefs, support staff and delivery personnel.
It’s only missing the busy dining rooms full of hungry customers.
All the meal preparation, packaging and delivery of food to nearby customers happens in the ghost kitchen.
Sometimes when on a road trip, my family and I crave a cool and frosty treat.
One of our favorite stops? Wendy’s.
Wendy’s, an iconic American quick-serve restaurant known for its fresh, never frozen burgers and home of the popular Frosty frozen dessert is all-in on the America 2.0 ghost kitchen revolution!
You see, ghost kitchens rely on our favorite mega trend technologies such as cloud computing, artificial intelligence and the Internet of Things.
Per the Associated Press, Wendy’s plans to open 700 ghost kitchens by 2025 “to meet the growing demand from people who want their fast food brought to them.”
Wendy’s plans to open its first 50 ghost kitchens this year.
Per AP reporting, “Wendy’s is partnering with Reef Technology Inc., a Miami company that runs 5,000 delivery kitchens in 30 cities worldwide.” These ghost kitchens “are expected to see sales of $500,000 to $1 million per year. Wendy’s will get royalties of around 6% of sales.”
That’s a good chunk of growth for this industry. And that’s what we like to invest in.
Invest in Growth of the Ghost Kitchens
So far, the ghost kitchen concept is becoming more popular with each passing day.
One company that’s pioneering the restaurant revolution is Kitchen United — a Google Ventures or GV startup that specializes in the cuisine-on-demand concept.
It offers fully licensed and equipped commercial kitchen spaces.
These spaces can compartmentalize and rent several fully functional commercial kitchen spaces to multiple virtual restaurants, all under one roof.
It also provides the technology platforms needed for new ghost kitchen entrepreneurs to connect quickly with local customers and start receiving food orders for delivery.
For entrepreneurs interested in starting a restaurant business without the overhead of buying or leasing a restaurant space, new tech startups using the ghost kitchen setup supply all that is needed to get a virtual restaurant up and running in no time.
“Citing ‘unbelievable’ growth in 2020, Kitchen United will add 16 locations this year,” according to Restaurant Business.
This week, as reported by LA Business Journal, the company just inked a partnership deal with Kroger to “provide Kroger’s grocery store customers with on-demand meal pickup and delivery from popular restaurants.”
According to Kitchen United, ghost kitchens offer restauranteurs “a faster, lower-risk way to expand” their business.
To open a traditional restaurant, it could take $1 million or more in startup costs and one year or more to acquire building permits and open.
Meanwhile, ghost kitchens just need around $30,000 in startup costs and just eight weeks to open.
The overall ghost kitchen concept is here to stay as more people order their meals through food delivery services.
Get Paul’s Top Picks Set to Gain from the Ghost Kitchen Boom
With younger generations such as millennials and gen-zers leading the charge, the ghost kitchen restaurant concept is a growing industry.
With many of these kitchens popping up in urban areas and near college campuses, younger people are flocking to these restaurants of the future.
Ghost kitchens offer a variety of menu items that are conveniently delivered by delivery services.
One delivery service is Uber Eats.
Uber Eats is part of the Uber family. Paul recommends Uber as part of his Bold Profits Daily BUZZ recommendation.
His recommendation is mainly based on Uber’s autonomous vehicle technology, but like Tesla has space, new energy and more … we’re looking at its full growth potential.
So, your first play for the ghost kitchen phenomenon is to invest in delivery app technology. You can use the Rules of the Game to up your exposure to Uber Technologies Inc. (NYSE: UBER).
As an early investor during this exciting transformation of restaurants as we know them, there’s opportunity here to profit.
Here’s another way to invest:
Paul just recommended another top food delivery company for the America 2.0 technology revolution in his “next level” open model portfolio.
As you know, we don’t recommend putting all your money into one single stock for an America 2.0 mega trend.
We want you to have many options to profit from this growth.
To expand your portfolio and get more picks for America 2.0, click here to see the details now.
Ghost kitchens are revolutionary and set to add revenue dollars to food delivery apps.
Make sure you’re in!
Until next time,
Director of Investment Research, Banyan Hill Publishing