Virtual Restaurants and Ghost Kitchens: A New Opportunity

Abstract

This case study examines the rise of virtual restaurants and ghost kitchens as a result of the COVID-19 pandemic. Through the lens of organizational resiliency theory, the strengths, weaknesses, opportunities, and threats surrounding these ventures and their viability is analyzed and discussed. The case study methodology was used to provide an in-depth, multi-faceted understanding of the virtual restaurant and ghost kitchen phenomenon. It was determined that minimal upfront investments coupled with data-driven support and the ability to test new concepts and increase a customer base serve as the strengths and opportunities afforded by virtual restaurants and ghost kitchens. Threats and weaknesses included a separation between the brand and the customer, an overcrowded market and a greater concentration of competition, as well as a more hands-off customer experience. This case leverages the tenets of organizational resiliency theory to explore the rise of virtual restaurants and ghost kitchens and provide educators and students with an explanation for how these concepts came to fruition, and how their existence can benefit the individual organization and impact the industry. Applications of the case in the classroom setting are also provided.