Overcome The Issues Of Starting A Food Delivery Business

How to use tech in a commercial kitchen

March 11, 2023
Commercial Kitchens, Dark Kitchens, Food Business

Whew! Running a commercial kitchen is no joke! It takes a whole lot of know-how on food safety, menu planning, smooth workflows, and managing staff like a pro. But hold onto your hats, folks, because with the help of cutting-edge technology, modern kitchens are cooking up a storm and staying ahead of the game!

That’s right, chefs can now whip up a storm in the kitchen more efficiently and effectively than ever before! With apps that streamline and automate ordering, and fancy-pants artificial intelligence (AI) that can handle the boring bits, tech is totally transforming the way we run our kitchens.

So, let’s get cooking and see how this tech wizardry is making life in the kitchen a whole lot simpler!

Food production

isten up, foodies! The kitchen game has changed and tech is leading the charge! Say goodbye to the old-school ways of taking orders and storing ingredients – we’re talking about the cutting edge stuff!

With automated ordering systems, consistency is key! No more errors or human slip-ups – technology takes care of it all! Staff can now focus on cooking up a storm and getting those meals out to hungry customers, without worrying about manual order entry.

And let’s talk refrigeration – smart refrigeration systems are the real MVPs! They help maintain a consistent temperature throughout storage areas, keeping food fresh and preventing waste. No more sad, wilted produce or spoiled meats – technology’s got your back!

But wait, there’s more! Cloud-based inventory management means chefs can stay on top of their ingredient status in real-time, without even leaving the kitchen. This makes budgeting a breeze and ensures that every dish comes out tasting like pure perfection!

So, are you ready to up your kitchen game with the power of tech? Let’s get cooking!

Kitchen equipment

Listen up, foodies! The kitchen game has been taken to a whole new level with the power of modern tech! From lightning-fast cooking equipment to dishwashers that can tackle even the toughest grime, these gadgets are changing the game in commercial kitchens everywhere.

Automated fryers are the real MVPs, cooking up tasty grub faster and more accurately than ever before. And don’t even get us started on those dishwashing machines – they make cleaning a breeze, leaving plates and silverware sparkling like new!

But wait, there’s more! Internet-connected appliances are giving chefs the power to monitor temperatures remotely and stay on top of repairs and cleaning. Plus, sophisticated inventory management systems and automated ordering means that chefs can focus on what they do best – cooking up mouth-watering meals!

So, whether you’re a restaurant owner, a chef, or just a foodie, the world of kitchen tech is an exciting one to explore! Say goodbye to manual labour and hello to the future of cooking – it’s a delicious ride!

Task management

Listen up, kitchen crew! Are you tired of struggling to keep your team organised and on track? Well, it’s time to say hello to the power of automation!

With cutting-edge scheduling systems and task management apps, restaurant owners can keep their staff in sync and working together seamlessly. No more missed tasks or miscommunications – everyone can stay on top of their game and work like a well-oiled machine!

And the best part? Automation saves time and eliminates errors! No more endless paperwork or data entry mistakes – let the machines handle the boring stuff so you can focus on what really matters: serving up delicious dishes!

Plus, with built-in analytics features, restaurant owners can track performance metrics and ensure that tasks are completed accurately and on time. It’s like having a personal productivity coach right at your fingertips!

So, whether you’re a head chef, sous chef, or kitchen staff, it’s time to embrace the power of automation and take your kitchen game to the next level!

Staff management

In addition, digital inventory management systems help keep track of ingredient stock levels and alert when supplies are running low. This reduces waste, ensures menu consistency, and prevents the headache of running out of an important ingredient during service.

With advanced analytics tools, you can also track and analyse sales data, staffing levels and food costs, which provide valuable insights to make informed decisions about menu pricing, staff scheduling and ingredient purchasing.

In conclusion, technology is proving to be a game-changer in the world of commercial kitchen management. By adopting the latest software and tools, you can improve your staff management practices, boost productivity, and ensure your customers receive the best quality dishes possible. So why not put down that pen and paper and embrace the power of tech to take your kitchen to the next level?

Food waste

Smart cold food storage solutions are also becoming increasingly popular in commercial kitchens. These systems use advanced technology to monitor the temperature of stored food, ensuring it stays at the optimal level to preserve freshness and prevent spoilage. Some even have built-in sensors that can detect when food is nearing its expiration date, alerting staff to use it up before it goes bad.

In addition, digital kitchen management systems allow chefs and managers to track food waste data in real-time. By analysing this data, they can identify areas where waste is occurring and take steps to reduce it. For example, they might adjust recipes to use less of an ingredient or change the way they prepare certain dishes to minimise waste.

Overall, technology is proving to be a valuable tool in the fight against food waste in the restaurant industry. By implementing these innovative solutions, commercial kitchens can reduce waste, save money, and help create a more sustainable future. So why not join the movement and make your kitchen a leader in reducing food waste through the power of technology?

Health and safety

n addition to the benefits of food safety and resource optimization, the use of technology in the restaurant industry can also improve customer experiences. For example, digital ordering and payment systems can reduce wait times and increase order accuracy, while mobile apps and loyalty programs can enhance customer engagement and encourage repeat business.

Furthermore, technology can also enable restaurants to offer more personalized experiences to customers. For instance, data analytics can help restaurants to understand customer preferences and purchasing patterns, allowing them to tailor menus and promotions to individual customers.

Overall, the use of technology in the restaurant industry has the potential to revolutionize the way restaurants operate, from food safety and resource optimization to customer experiences and personalized marketing. As technology continues to evolve, we can expect to see even more exciting advancements that will shape the future of the restaurant industry.

POS systems

It’s great to see how technology is making POS systems more flexible and efficient, allowing restaurant owners to easily manage their sales data on the go. Another advantage of modern POS systems is their ability to integrate with other business tools, such as inventory management software and customer relationship management (CRM) systems.

By integrating these systems, restaurant owners can gain a comprehensive view of their business operations, from inventory levels and sales data to customer feedback and marketing campaigns. This information can help them make informed decisions about their menu, pricing, and marketing strategies, ultimately driving growth and profitability.

Furthermore, modern POS systems can also support a variety of payment options, including mobile payments and contactless payments, which are becoming increasingly popular among customers. These payment options not only offer a more convenient experience for customers, but they can also help reduce transaction times, improving overall efficiency in the commercial kitchen.

Overall, the integration of technology into POS systems has the potential to improve many aspects of running a commercial kitchen, from sales tracking and inventory management to customer engagement and payment processing. It’s exciting to see how technology will continue to evolve and improve these systems in the future.

An image of fresh food representing the changes to fresh food in 2023

Food trends in 2023

January 3, 2023
Food Business

As we enter the new year, it’s always fun to speculate about the food trends that will dominate the culinary landscape in the months ahead. While we don’t have a crystal ball, we can share some insights and predictions based on our knowledge of the food industry in 2022 and what 2023 might hold. Here are a few trends to keep an eye on in 2023:

Plant-based proteins

Plant-based proteins will continue to rise in popularity. As concerns about the environmental impact of animal agriculture and the health benefits of plant-based diets grow, more and more people are opting for plant-based protein sources such as beans, lentils, and tofu. Look for an explosion of innovative plant-based products, from plant-based burgers and sausages to plant-based “meatballs” and “chicken” nuggets.

Fermented foods

Fermented foods will gain even more traction. Fermented foods, such as kimchi, sauerkraut, and kombucha, are rich in probiotics and other health-promoting bacteria. In 2023, expect to see a wider variety of fermented foods on store shelves and on restaurant menus, as more people discover the benefits of these tangy, gut-healthy treats.

Ancient grains

Ancient grains will make a comeback. Ancient grains such as quinoa, amaranth, and farro have been around for centuries, but they’ve recently gained popularity as healthier alternatives to more refined grains. In 2023, look for these grains to show up in everything from breakfast cereals and breads to pasta and snack bars.

Zero waste and upcycling

Zero-waste and upcycling will continue to grow in importance. As concerns about food waste and sustainability continue to rise, more and more people are looking for ways to reduce their environmental impact. This includes using every part of the ingredients they buy and finding creative ways to repurpose leftovers. Expect to see more “nose-to-tail” cooking and other techniques that minimize waste in the kitchen.

Global Flavours

The popularity of global flavours will continue to expand. As the world becomes more connected, people are becoming more interested in trying cuisines from all over the globe. In 2023, expect to see a wider variety of international flavours and ingredients on store shelves and restaurant menus, as people continue to explore the rich diversity of the culinary world

Robotic kitchen assistants

Robotics are increasingly being used in kitchens to perform tasks such as flipping burgers, making pizzas, and even cooking entire meals. These robots are able to work around the clock, without needing breaks or vacation time, and they can be programmed to prepare a wide variety of dishes with consistent quality. In some cases, robots are even being used to serve food to customers.

One example of a robotic kitchen assistant is the “Chef Cui” developed by Chinese company PuduTech. This robot can grill, fry, and boil a variety of foods, and it can also slice and dice vegetables and meats. Another example is the “Spyce” robot, which can prepare a bowl of rice, vegetables, and protein in under five minutes using a combination of robotic arms and a wok-like heating element.

While the use of robotics in the kitchen is still in its early stages, it has the potential to revolutionize the way we think about food preparation. In the future, we may see entire restaurants run by robots, freeing up human workers to focus on tasks that require a more human touch, such as customer service and menu development. However, it’s important to note that robotics should be viewed as a complement to, rather than a replacement for, human labor.

Smart Kitchens

A smart kitchen is a kitchen that is equipped with a variety of high-tech appliances and features that make cooking and meal prep easier and more efficient. These features might include smart fridges that can track expiration dates and suggest recipes based on what’s inside, smart ovens that can be controlled and monitored remotely, and voice-activated assistants that can help with everything from setting timers to finding recipes.

One of the main benefits of a smart kitchen is the ability to connect and control various appliances and devices through a single app or interface. For example, you might be able to start the coffee machine from bed using your phone, or set the oven to preheat while you’re on your way home from work.

Smart kitchens can also make it easier to track and manage your diet, with features such as meal planning and grocery delivery integration. Some smart kitchens even have built-in nutrition and calorie tracking, so you can see exactly what you’re eating and how it fits into your overall health goals.

Overall, a smart kitchen can save time, reduce waste, and make cooking and meal prep more convenient and enjoyable. As technology continues to advance, we can expect to see even more innovative features and appliances in the smart kitchen of the future.

Vertical farming

Vertical farming is a method of growing plants in stacked layers, often using hydroponics or other soil-less systems. This approach allows for year-round production of fresh produce in a controlled environment, using far less water and land than traditional farming methods.

In 2023, it’s likely that we will see an increase in the use of vertical farming, particularly in urban areas where space is at a premium. With the right technology and infrastructure, vertical farms can produce a wide variety of crops, including leafy greens, herbs, and small fruits.

One of the main advantages of vertical farming is its ability to reduce the environmental impact of food production. Because the growing conditions can be carefully controlled, vertical farms use less water and pesticides, and they generate fewer greenhouse gas emissions than traditional farms. Additionally, because the crops are grown indoors, they are less susceptible to pests and diseases.

Another advantage of vertical farming is that it can provide a consistent and reliable supply of fresh produce, even in areas where traditional farming is not possible. This could be especially important as climate change and other factors continue to affect agricultural production around the world.

Overall, vertical farming has the potential to revolutionize the way we think about food production, making it more sustainable, efficient, and accessible. It will be interesting to see how this technology evolves and is adopted in the coming years.

The cost of living crisis

The cost of living crisis, or the increasing cost of goods and services, could have a significant impact on the food business in 2023. Here are a few ways in which this crisis could manifest:

Increased prices for ingredients and food products: As the cost of living goes up, so too do the prices of the goods and services that businesses rely on. This could lead to higher prices for ingredients and food products, as businesses pass on their increased costs to consumers.
Decreased demand for dining out: As people’s budgets are squeezed, they may be less likely to eat out or purchase expensive, specialty food items. This could lead to a decline in sales for restaurants and other food businesses.
Changes in consumer behavior: In response to the cost of living crisis, consumers may start looking for ways to cut costs, such as by cooking at home more often or opting for cheaper, lower-quality products. This could lead to changes in the types of products and services that businesses offer.
Difficulty attracting and retaining employees: As the cost of living goes up, it may become more difficult for businesses to attract and retain employees, especially in the food industry where wages are often low. This could lead to a labor shortage, which could further impact the ability of businesses to meet demand.

Overall, the cost of living crisis could have significant implications for the food business in 2023, leading to higher prices, changes in consumer behavior, and potential difficulties in attracting and retaining employees. It will be important for businesses to adapt and find ways to navigate these challenges in order to remain successful in this increasingly costly environment.

Recap

Overall, it looks like 2023 will be a year of innovation and experimentation in the food world, as more and more people look for healthier, more sustainable, and more diverse options. Whether you’re a home cook or a professional chef, there will be plenty of exciting new flavors and techniques to explore and enjoy.

A graph from Statista showing Uk food business revenue

How profitable are dark kitchens?

October 13, 2022
Dark Kitchens, Food Business, Kitchens For Deliveroo

How profitable are dark kitchens?

A Dark kitchen to rent, sometimes known as cloud kitchens or virtual kitchens have increased massively in popularity in recent years. Things really kicked off during the pandemic when large numbers of food truck owners, who could no longer rely on events and event catering, took to a dark kitchen to continue their operations.

Restaurants looking to expand and who had had success with their delivery menus also looked at a Dark kitchen as a way to drive up sales in new markets without the higher overheads and start-up costs of a traditional restaurant and to avoid the restrictions placed on them by the government. Some even downsized to delivery-only models once restrictions were lifted.

Now the dark kitchen model is here to stay!

Before starting any business it’s important to understand the costs involved and where you can profit the most from your food business. Keep on reading as we take a look at how to maximise profits from a dark kitchen and why they could work for you.

How do food delivery businesses operate

First of all let’s take a look at how the dark kitchen business model works:-

Dark kitchens have no shopfront and are often situated in ‘subprime’ locations. That’s not to say they aren’t well situated, just that they don’t have the high presence of a restaurant.

They require less staff (no front of house) and customers don’t have direct access.

Food is collected either by a delivery app rider (Deliveroo, Just Eat, Uber Eats etc) or by D2C delivery drivers employed by the restaurant

Profit margins of a food business

Let’s cover the basics first:-

Before going any further let’s cover the difference between your revenue and your profit margin.

Your profit margin is the difference between your total sales (revenue) and your costs to achieve this revenue. The difference between the two is your profit margin.

Let’s break down the main costs you will incur while running a food business:-

Rent for your premises

Staffing

Produce and Stock

Gas, Electric, Water

Rubbish Collection

Marketing

Repairs and Maintenance

Commercial cooking equipment

Card processing fees and cash handling costs

Point of sale running costs

Taxes and VAT

It’s imperative that you understand the difference between revenue and sales. It’s impossible to run your food business without having at least a basic understanding of how the two are related. Having a grip on these basics will allow you to understand how to increase revenue, how to increase sales, project your cash flow and even how to lower your running costs and reduce waste.

Different types of food businesses operate at different scales and each has their own individual costs associated to them.

To give you a rough guide to the costs involved, as a general rule of thumb a brick-and-mortar restaurant will normally run on a profit margin of 5%. For every £1 of revenue, 5p is profit. That being said it’s almost impossible to put a figure on what makes a great business or a great profit margin.

For example, a food business without a fixed kitchen, such as a small food truck or mobile catering operation may have profit margins as high as 20%. The downside to this is that their revenue will be much lower than a delivery business or restaurant business as they do not have the luxury of repeat customers in many cases.

However, the outlook for the UK restaurant industry is full of promise with a very bright outlook. The latest figures from the OFNS and Statista show that the Uk food and Beverage industry has increased year on year up until the pandemic of 2020.

The latest statistics are yet to be released but many industry experts expect a return to an annual year-on-year increase with the UK food and beverage industry expected to be worth a staggering £70 billion per year. The OFNS recently announced that in the UK, in 2020, over 40,000 food businesses recorded a turnover of between £100,000 – £250,000 PA. This is expected to increase along with the Statista outlook.

How to work out the difference between gross and net profit?

There are two types of profit. Net and Gross.

Gross profit is calculated by subtracting the cost of a product from the sale price of a product. Gross profit is a good way to guage an overview of your business and it’s day to day profitability. However, gross profit doesn’t show the true cost’s or profitability of your business.

Net profit provides you with a much clearer picture of where the business is financially and if you are indeed making a profit.

To work out your gross profit margin we need to deduct all of the costs associated with running your business. For a food business, the main costs will normally be, kitchen rent, staffing costs, utility bills, point of sale and cost of production.

How to calculate gross profit margins:

Retail price minus the cost of the product divided by the retail price

Let’s look at a simple example of this;-

You sell a burger for £10.00

The cost to produce the burger is £5.00

The calculation would be £10-£5= £5

£5/£10= 0.5

0.5×100= 50% This is your gross profit margin

How to calculate net profit margin:-

To calculate your net profit margin we need to use the following calculation:

Total retail sales minus total expenses (not just product cost but all business costs) equals your net profit margin

Let’s try an example

Your total retail sales for October were £100,000 with total costs of £50,000

£100,000 minus £50,000 = £50,000

£50,000/£100,000= 0.5

0.5 x 100 = 50% net profit margin

Are Dark kitchens more profitable than a restaurant?

So let’s get to the nitty gritty. What s more profitable? A Dark kitchen or a traditional restaurant?

There are many benefits of a dark kitchen, especially profitability and how you can increase those profits compared to a bricks-and-mortar restaurant. Let’s look at some of these below:-

Lower operation costs

Lower rent overheads

There’s no doubt that renting a dark kitchen or food delivery kitchen is cheaper than bricks and mortar restaurant. You don’t require the additional size required for a restaurant such as space for dining, customer toilets, and an area to meet and greet diners. You also save the refurbishment costs associated with creating a fit out for diners which can run into the £10,000’s and often more. Instead, costs can be focused on premises in a prime position that is perfectly suited to your size.

Lower staff numbers

By losing the front of the house you save a lot of money on the staff roster salaries, administration and management. There is no need for waiters, bar staff, front-of-house management etc. Instead, focus on recruiting the very best chefs who can give their sole focus to creating great food.

Additional cost savings

Signage, fit out, cutlery and crockery, furniture, glassware and so on and so forth. These are all costs you will now save when choosing a ghost kitchen. When you add the staffing costs, logistics and rent savings into the mix things really start to add up.

Reduced costs and time saving

Starting a food business, let alone a restaurant will normally be one of the biggest investment you will ever make. But by choosing a dark kitchen, it doesn’t have to be this way.

The barrier to entry of opening a restaurant is huge. The investment required to start and run, normally at a loss for the initial launch period is huge. The advent of dark kitchens has lowered the upfront costs tremendously, bringing the dream of your own business much nearer than you might think.

By starting your food business from a commercial kitchen it removes much of the stress and associated costs of opening a food start up and provides a much quicker route to profitability.

Save yourself both cost and trouble by choosing a commercial kitchen to rent and avoid the pitfalls of a brick and mortar start up, such as;

Finding a High St unit or restaurant in a suitable location

The costs of fit out, furnishing, and more

The legalities of taking in a long commercial lease

The cost of a kitchen fit out

Hiring a large number of staff

The large upfront cost or the need to secure business finance

Improve your chances of success

As we’ve discussed, due to the high initial start up costs of High St outlet, a lot of restaurants never reach profitability and the runway before they do is, on average, 3 – 5 years.

The importance of reducing costs when starting out cannot be overstated. Lower capital investments and lower operating costs, equal more chance of success.

If you’re looking for a dark kitchen or commercial kitchen to start or expand your food business, you’re in the right place. Share There have flexible commercial kitchens to rent in exciting and prime locations across the UK. Perfect for giving you the best chance of success with your new food business and increasing profits when looking to expand!

Check out our current selection of dark kitchens to rent, pub kitchens to rent and commercial kitchens to rent. Or call us to discuss your requirements in further detail – we’re always happy to help!

Overcome the issues of starting a food delivery business