What is a phantom kitchen?

Phantom kitchens, also known as dark kitchens, are a fast-growing concept in the foodservice industry. This innovative business model, based on the preparation of meals exclusively for home delivery, is experiencing considerable growth in France.
The aim of this white paper is to analyze the current state of the sector, study the impact of emerging technologies, present detailed case studies and propose implementation strategies for entrepreneurs wishing to embark on this adventure.
Finally, we will look at how Inibar Services, an expert in IT solutions, can support players in this market in their development.

Analysis of the current state of the sector

According to a study conducted by Xerfi in 2021, the French market for dark kitchens should reach 1.3 billion euros by 2023, with annual growth of 20% (source: Xerfi, 2021). The impact of COVID-19 has not only accelerated digitalization, but also transformed consumer expectations, who now favor fast, personalized service. Companies are thus faced with challenges such as technological integration and regulation, while seeking to optimize the customer experience.

Impact of emerging technologies

Emerging technologies play a major role in the development of dark kitchens. These include:

• Delivery platforms: Uber Eats, Deliveroo and Just Eat are the main players on the French market. These platforms enable dark kitchens to benefit from increased visibility and an extensive delivery network (source: Statista, 2021).
• Software solutions: dark kitchens need high-performance tools to manage their orders, production and inventory. Software solutions such as Deliverect and Flipdish make it easier to manage these processes (source: Les Echos, 2021).
• Artificial intelligence: We look at a number of French companies that have successfully integrated digital solutions. In particular, AI helps optimize production and inventory management by analyzing consumption data and anticipating needs (source: L’Usine Digitale, 2021). For example, the “Cuisine Innov’ Paris” chain increased its sales by 30% after adopting an AI-based management solution, improving customer satisfaction and reducing delivery times by 25%.

Some specialists

• Not So Dark: This French company has raised 20 million euros in 2021 to develop its network of dark kitchens. Not So Dark offers virtual brands and works with renowned chefs to create varied, high-quality menus (source: FrenchWeb, 2021).
• Frichti: Initially specializing in home meal delivery, Frichti opened its own dark kitchen in 2019. This initiative enabled it to cut costs and improve the quality of its dishes (source: Le Figaro, 2019).

What are the disadvantages of a dark kitchen?

The visibility of a d kitchen is almost exclusively online

The major drawback of dark kitchens is their almost exclusive reliance on online visibility to attract customers. This approach can limit their ability to build a loyal local customer base, as they lack a physical presence that stimulates brand recognition through high street visibility. It also means that they often have to invest a sizeable budget in digital marketing and delivery platforms to become and remain competitive in the face of huge emerging competition, which can lead to a heavy reliance on these platforms’ algorithms.

Delivery platforms dictate the rules

Delivery platforms play a crucial role in the success of dark kitchens, but they also have a notable disadvantage: they impose their own rules and conditions, leading kitchen managers to delegate a significant part of their operational control. High commission rates can erode dark kitchens’ profit margins, and conditions of use can limit the way services are offered to customers. What’s more, as these platforms monitor customer interactions and collect important data on consumer behavior, dark kitchen managers lose direct access to valuable information that could help them optimize and personalize their offering. This dependence can make them vulnerable to potential changes in platform policy, which can alter conditions or costs without notice, affecting the viability of these kitchens’ operations.

Breaking the social link during meals

Some may deplore the absence of a catering space with dark kitchens, making social exchange during the meal less attractive.
Nevertheless, this hasn’t stopped this business model from exploding in recent years. Customers seem to appreciate the social exchange at home, with the dishes of their choice.

What are the benefits of dark kitchens?

Comfort, convenience and speed for customers

Online ordering and home delivery offer unrivalled convenience, particularly appreciated in urban lifestyles.
In addition, without the need to serve customers in the dining room, staff can concentrate on efficient meal preparation and delivery, potentially reducing waiting time.

Wide choice of home-delivered dishes

Dark kitchens give customers access to a wide variety of cuisines and dishes from a single delivery platform, increasing the options available without leaving home.

Increased profitability through reduced real estate and labor costs for managers

Dark kitchens eliminate the need for a traditional restaurant space, reducing the costs associated with renting, fitting out and maintaining a physical establishment.

Geographical flexibility

Managers can locate their kitchens in industrial or outlying areas where rent is cheaper, while serving customers in high-demand areas.

Increased service efficiency

By focusing solely on meal preparation and delivery, dark kitchens can optimize their operations and manage staff and resources more effectively.

Implementation strategies and recommendations

For CIOs and IT project managers, it’s essential to develop a clear roadmap for the adoption of these technologies. This includes training teams, investing in secure and scalable solutions, and working closely with strategic technology partners. Specific recommendations are provided to ensure a smooth and compliant transition. To succeed in the dark kitchen business, it’s essential to :

• Choose a strategic location, close to areas of high demand and easily accessible for delivery drivers.
• Develop a varied, high-quality culinary offering that meets consumer expectations.
• Partner with recognized, high-performance delivery platforms.
• Implement appropriate software and technological solutions to optimize order, production and inventory management.
• Comply with current hygiene and safety standards.

Conclusion and future prospects for dark kitchens

For CIOs and IT project managers, it’s essential to develop a clear roadmap for the adoption of these technologies. This includes team training,