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    A ghost restaurant (also known as a delivery-only restaurant or online-only restaurant) is a food service business that serves customers exclusively through online food delivery. Without the need to interact with customers directly on the premises, ghost restaurants can offset the high cost of a delivery system with cheaper real estate and operations.

    Just analysis the current Opportunities and Threats about this new model


Subject Essay Writing Pages 3 Style APA


Ghost Restaurant: Company Analysis

            A ghost restaurant is an online-only food services business that uses online food delivery platform exclusively to serve its customers without direct interaction with clients. Running such a business presents various challenges and prospects for the management. This paper analyses the threats and opportunities of this business model.


            Threats comprise of external factors that are likely to affect the operations of the business negatively or limit the business profitability in the marketplace. The company addresses these factors by identifying them and taking preventive measures. Some of the threats a ghost restaurant is likely to face include:

  1. Low market share. Since there is high competition in the food industry and customers have alternative sources of restaurant food, a ghost restaurant may find it difficult to expand its market share.
  2. Bad reviews. A section of online restaurants operates under false identities without proper licensing (Glorioso, Givens & Stulberger, 2015). This may discourage potential customers from engaging Ghost restaurant’s service offerings.
  • Competition from other restaurants that offer food delivery services. The ghost restaurant is likely to face stiff competition from other businesses providing the same services.


            These refer to external market changes that the business can exploit through continuous evaluation to achieve a competitive advantage. Some of the opportunities a ghost restaurant can include:

  1. Partnership with other physical restaurants (Kessler, 2016). Ghost restaurant can partner with other physical restaurants and use its model to offer delivery services, thereby increasing its market share.
  2. Menu innovation and setting-up several restaurants targeting different segments (Ungerleider, 2017). The company can operate multiple ghost restaurants to target different consumer segments using one kitchen location. Besides, it can also try out a new menu with little efforts.


Glorioso, C. & Givens, A. & Stulberger, E. (2015). LOCALI-Team: Restaurants Use False Identities on Food Delivery Websites. NBC News. New York. Retrieved from https://www.revolvy.com/page/Ghost-restaurant?

Kessler, S. (2016). How Maple Built An Insanely Efficient, Chipotle-Crushing Food Delivery Machine. Fast Company. Retrieved from https://www.fastcompany.com/3057405/how-maple-built-an-insanely-efficient-chipotle-crushing-food-delivery-m

Ungerleider, N. (2017). Hold The Storefront: How Delivery-Only “Ghost” Restaurants Are Changing Takeout. Fast Company.https://www.fastcompany.com/3064075/hold-the-storefront-how-delivery-only-ghost-restaurants-are-changing-take-out  


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