CEO and Founder of the Profitable Restaurant Owner Academy, the ultimate resource in starting a profitable restaurant.
Restaurants are notorious for their low-margin business model. After all is said and done, their profitability ranges from 5% to 10%, a number I’ve gathered from a variety of National Restaurant Association articles and surveys. The reason for its low margins is because of the prime cost — food cost and labor — which typically accounts for more than 55% to 65% of the revenue.
As technology rapidly advanced, so did innovation within the food and beverage sector. Third-party apps like Uber Eats, Grubhub and DoorDash have made ordering out easy with just a click of a button — no need to step foot in the restaurant. It is with the advancement of this technology that has allowed new businesses like virtual kitchens, also known as cloud kitchens, ghost kitchens or