b'TRENDSFour Reasons toConsider a Virtual KitchenWhy delivery- A t this time last year, the averageno physical dine-in spacefor years. The U.S., eater or chef didnt know muchthough late to the game, is seeing an explosion only conceptsabout virtual kitchens. Now, thesein these types of kitchens and is expected to often delivery-only concepts are poppingdominate the global market by 2027.with no physicalup in almost every U.S. city and are slatedVirtual kitchens, with their low barriers to to be a $1 trillion global market in the nextentry and focus on streamlined delivery, are dine-in space10 years. a smart and inexpensive way to get food into are catching on It makes sensefood delivery,customers hands. Here are four reasons why according to The Washington Post, is onea virtual kitchen could be the smartest move of the few areas in the restaurant industryduring these challenging times:BY NILI MALACH POYNTER,seeing growth right now. According to CHEFREADY the National Restaurant Associations1. Adapt to the Rapidly Changing December 2020 report, 87% of full-serviceDelivery Landscaperestaurants report an average of 36% dropMillennials, who often prioritize convenience in sales revenue, and 17% of restaurantsand on-demand services, have been the have closed permanently or long-term. primary force driving the success of delivery-However, many of the food industryfocused restaurants. However, more recently, problems exacerbated by the pandemicthe COVID-19 pandemic encouraged people have been problems for years: rising rentof all ages to try restaurant delivery, creating and labor costs, razor-thin margins andnew habits that will likely continue. According high overhead. Restaurants must overcometo the Wall Street Journals recent article on many challenges to stay afloat and workvirtual kitchens, 82% of diners said they plan to even harder to become successful. continue ordering online at the same frequency To combat these problems, manythey are now, even post-pandemic.European countries, as well as China, India, the Middle East and other regions2. Flexibility Can Help Reap Rewardsof the world, have been leveraging virtualThe reason many restaurants only have a kitchensdelivery-only concepts withprofitability rate of 5-10% is largely due to food 14 CATERING, FOODSERVICE & EVENTS cfe-news.com PHOTOS AND RENDERINGS COURTESY OF CHEFREADY'