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How Ghost Kitchens Are Impacting The Restaurant Industry

Ghost kitchens and virtual brands are changing the face of the food service industry. Both innovations are creating a new way for entrepreneurs to break into the industry. Join us as we explore the benefits of ghost kitchens and how restaurateurs can use them.

What Are Ghost Kitchens?

Ghost kitchens are professional kitchens that are not tied to a restaurant. It is a facility that exists, usually to support a virtual restaurant brand. It provides a physical location to develop a brand and experiment with recipes and menus.

What Is A Virtual Brand?

A virtual brand is a restaurant that does not have a brick and mortar location that customers can dine at. Virtual brands have grown out of the expansion of the food delivery industry. Doordash, GrubHub, Uber Eats, Postmates, Bite Squad…the list for delivery goes on and on. Not to mention the local delivery services that have managed to survive.

Virtual brands do not serve customers in a restaurant, and their entire development is for delivery services. Sometimes virtual brands are intended to stand on their own two feet. Other times they are an offshoot of an existing brick and mortar restaurant that fall under the same name, or even a different one. Finally, a virtual brand is a test run for a brick and mortar store.

Benefits Of A Ghost Kitchen

Ghost kitchens shine best in the developmental stage of a restaurant. It lets everybody involved in developing the restaurant have a trial run before opening a physical location. The results of a ghost kitchen trial run can also be used to woo investors by demonstrating the success of a particular chef or style of food.

They also allow a team trying to establish a location to acquire an independent income stream. This enables restaurants to rely less on creditors, which gives them a higher chance of survival.

Finally, ghost kitchens provide an outlet for an established brand that has a large volume of online orders. For certain restaurants, online orders are simply a distraction for their kitchen trying to feed customers in a brick and mortar location. Ghost kitchens handle the online orders to keep the brick and mortar location functioning.

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How To Select A Location For Your Restaurant

There is a reason that the most well-known real estate adage is “location, location, location.” Location is absolutely essential for a successful business and is one of the deciding factors in the success of a food service business. So how do restaurant entrepreneurs and operators determine the best location for them? Read on to explore our top tips for selecting a location for your restaurant.

Initial Marketing Research

The initial marketing research helps determine the general area or neighborhood that you need to be searching in. This decision is influenced by the target market and target customers who you are aiming for. For example, a sit-down restaurant for families probably belongs in the suburbs instead of downtown.

Determining Factors

There are three main factors to consider while location hunting. As frustrating as the search may be, do not give in and compromise on a location simply because it is there.

Size

The size of the potential space is a highly important factor to consider. Even smaller food service businesses, like coffee shops, need plenty of space. On the other hand, you do not want to be paying for space that you will not actually use.

Ask for some detailed floor plans of the space and sketch out potential layouts. Always make sure to remember to leave space for people and servers to walk through. Additionally, remember certain rules, such as ADA laws are in place that dictate spacing.

Visibility

Visibility is another consideration that owners and operators must make. While certain businesses can afford a little lower visibility, newer restaurants cannot. Even if the space is tucked back away from the road, something needs to signal to customers that you are there. An ideal site is in a high traffic location for both pedestrians and cars that comes with standout signage.

Previous Tenants

The history of a location tells potential renters quite a bit about the location. Ask questions about the number of tenants at a location. Then find out how long those people stayed there and why they left. If you can, talk to those ex-renters and find out from them what issues they ran into with location.

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Review: Bake’n Babes – Indulge Your Sweet Tooth

Bake’n Babes is tucked in the back corner of Tampa Bay’s oldest food hall, The Hall on Franklin. The local bakery, established 2013, serves a wide range of including milkshakes, liège waffles, light lunch items, charcuterie boards, as well as cakes, pies, and cookies. The menu boasts a sizable amount of vegan and gluten free options for a bakery.

Trying to pick a sample with such a wide-ranging menu is difficult, but I finally land on a Nutella liège waffle and a flourless chocolate torte. The torte is a gluten free torte made with Belgian chocolate. It is topped with chocolate ganache and a small dab of edible gold, accompanied by raspberry champagne coulis.

The waffle is made like a traditional Belgian waffle. The dough is yeast-based, almost like a brioche bread and pressed in a cast-iron waffle press. My Nutella waffle comes topped with imported pearl sugar, Nutella spread, and bruleed banana slices. There is even a little Belgian flag stuck in the top, following the Belgian tradition. Bake’n Babes founder, Julie Curry, told the Tampa Bay Times that a trip to Belgium inspired the unique menu item.

The smiley employee at the counter hands me a pager with a smile and warns me of the wait, “the waffles take a little while, because we make them from a scratch.” While I’m waiting, another customer gets one of the Bake’n Babes daunting Freak Shakes – an over-the-top milkshake that rotates monthly. December’s shake is blue, stacked sky-high with a slice of cake, popcorn, cotton candy, an iced cookie, a light-up snowflake, and a sparkler.

When my own treats arrive, they look beautiful, and taste even better than they look. The flourless chocolate torte is rich and velvety. The accompanying raspberry champagne coulis balances the deep flavor of Belgian chocolate with a naturally brightening tang. This torte feels luxuriant and indulgent. A feeling helped along by the 24k gold dabbed on the top of each slice.

The Belgian waffle is very authentic. The Nutella and banana flavor combination is popular for a reason, and works well on top of the thick waffle. The amount of toppings balance perfectly with the size of the waffle.

Overall, Bake’n Babes is an excellent experience. The physical location is not big, but the top-notch customer service, indulgent treats, and ambiance at the hall leave a great impression. Whether you’re looking for a post-workday treat or the perfect place for date night, head to Bake’n Babes in The Hall on Franklin.

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Podcasts That Help Restaurant Operators

Restaurant operators know that running any food operation is hard work. There are long hours, tight profits, and a lot of upkeep. However, for many it is worth it. Learning as much as possible about the industry is a good way to reduce the workload. Just like any other industry, there are successful experts willing to share their knowledge. Podcasts enable people to access this knowledge for free. So read on to learn about some of the top rated podcasts that focus on the restaurant industry.

1. Restaurant Unstoppable

Restaurant Unstoppable is run by Eric Cacciatore. He brings a different guest in every episode to share their expertise in the food service industry. In fact, the subtitle of Restaurant Unstoppable is “Melting Pot Of Mentors.”

The podcast has been running for a long time, and releases twice a week, so there are nearly 700 episodes to dive into. Restaurant Unstoppable has 5.0 out of 5 stars after 200 reviews.

Reviewers describe the podcasts as “bold, insightful, and engaging.” Other people claim that Restaurant Unstoppable is the catalyst for their own restaurant journey. Overall, they could be described as “glowing.”

2. The Garnish

The Garnish is run by the restaurant technology company Toast. Toast also has a blog that is an amazing resource for operators. The Garnish interviews everyone in the industry from restauranteurs to chefs to servers. So it truly provides a complete perspective across the industry.

The Garnish has an irregular publishing schedule, but there is plenty of content to sort through. It has been running since July of 2017, with the most recent Staff Series published in early November 2019.

3. Secret Sauce – The Restaurant Marketing Podcast

In a restaurant, a secret sauce is usually kept a secret because it is successful, and the uniqueness makes people love it. The Secret Sauce podcast aims to create the “secret sauce” of marketing for your restaurant. It has been running since October 2016 and has over 120 episodes.

It has a 5.0 out of 5 stars rating with approximately 30 reviews. Every review is thanking and praising James, who hosts the podcast. There are even chefs that claim Secret Sauce as a main source of inspiration for their personal brand.

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Review: Brightside Café – Brighten Your Day

As you walk into Brightside Café on North Morgan Street, the first impression is that it is aptly named; from the high ceilings painted white to the smiling employees, everything seems bright. The counter service restaurant has been run by Lisa Monk for a little over a year now.

“It used to be a club, and everything was dark – the ceiling was painted black.” Monk grimaces a little at the memory. The space that the café inhabits is tall, but there is almost no natural light. The white opens it up though, and it is peppered with green and orange accents. Monk has been in the restaurant business for 20 years and cites Chef Scot Hill – a 30 year food service veteran – as one of the main reasons for the café’s success. “He’s one of those creative chefs…what I’m saying is he’s crazy passionate,” she laughs “he comes up with great stuff.”

Brightside is open 7:00 a.m. to 2:00 p.m. Monday through Friday, serving breakfast and lunch. The menu has plenty of options for everyone, without being overwhelming, a specific goal of Monk’s. For breakfast, one of the employees enthusiastically recommends “La Cubanita”, the little Cuban sandwich. “It’s the best” she gushes. Tampa is the home base of Cuban sandwiches, and if someone is staking claim to “the best” title, it’s worth a try. To go along with the sandwich, she recommends one of their smoothies; I chose the “Pro-Berry-otic”.

The smoothie comes out first. The Pro-Berry-otic contains mixed berries, blueberry kefir, vanilla whey protein, and ice. All of the Brightside smoothies contain protein, which I was wary of. Protein smoothies tend to have a powdery, bitter aftertaste. Happily, this is not the case with the Pro-Berry-otic. It is amazingly smooth thanks to the kefir, and the whey protein is balanced well by the natural sweetness of the berries. The bases for the smoothies are all mixed in house, rather than the pre-made mixes many places purchase. The smoothie is healthy without tasting healthy – a small miracle.

Next comes La Cubanita. At first glance, La Cubanita looks like any other pressed Cuban sandwich, the toasted Cuban bread and melted cheese look delicious, but does it stand up to the long legacy of Cuban sandwiches in Tampa? Yes, yes it does. In addition to the usual smoked ham, swiss cheese, pickles, and mustard, Chef Scot Hill adds his “magic Mojo pork”. It manages to elevate the sandwich while sticking true to its roots. The mojo pork works with the pickles to balance out the sweetness of the Swiss cheese and is so delicious that I can’t argue with the “magic” moniker. The “Little” Cuban is the perfect breakfast serving, big enough to keep you full until lunch, without being so much that you need to take a carb nap afterward.

Brightside is also great value. Even with a tip, my meal barely hit the ten-dollar mark, and the lunch pricing is similar. It is hard to believe that such fresh and healthy options are so reasonable.

It is fairly common knowledge that the food service industry is a competitive career, but that doesn’t seem to slow Lisa Monk down. “We love coming to work. Our whole mission here is optimism and brightness,” she says “that’s where Brightside comes from.” The café accomplishes that mission, in its setting, food, and service. If you are looking for a way to step up your morning, or need a lunch pick me up, stop by the Brightside Café.

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{Noah’s Eat} Review: Cena – Tampa

Tampa restaurant - Cena

Cena – Authentically Unique! 

One thing that chefs struggle with is how do they stay true to their culinary heritage while still innovating? How far do they push the envelope, yet not lose the essence of a dish? This can be even more problematic with Italian food as many of the dishes and recipes are sacred! Well, Chef Michael Buttacavoli has found the sweet spot in this conundrum, and I don’t mean with just the delicious gelato! I visited Cena with my wife upon the recommendation of a friend, and the experience was extraordinary. From our host Joe (from Comack), to our server Marissa, all the way to speaking with Michael, who is not only a great chef, but a great guy!

Pasta - Cena tampaCena has a great vibe, a bit old school, but also a bit industrial. Our meals were amazing, the menu is rotational, and always features in season ingredients; starting with the Antipasti and Insalata.  I had the Octopus salad, which was spiced up with some Calabrian hot sauce and fried cauliflower.  Now I’m a bit of an authority on octopus, having eaten my way across the Iberian Peninsula, where they hand out awards to the tapas bar that serves the best pulpo. The Cena version of this was fantastic, with some innovative surprises in flavor and texture.  My wife had the baby kale Cesar; the chickpea croutons were an awesome touch! And Michael is not afraid to use anchovies to keep it authentic.  We had the gnocchi for a pasta course, which was equally inventive as the octopus.  The tomato sauce included braised oxtail, again a combination you’ll not find almost anywhere! The gnocchi had a finishing touch of being lightly braised in the skillet, which gave it an even deeper flavor and texture. Absolutely delicious. My secondi was the Parmesan crusted halibut, which was seared to perfection with a fabulous faro and risotto.  Again, another twist on a theme, but next level in flavor! This superb meal was finished off with gelato and of course, some house made limoncello!

In addition to my Iberian escapade, my wife and I recently made a trip to Sicily, where needless to say food is a way of life. I would put the meal at Cena on this level of the best cuisine we sampled. Plus not only is the food exceptional, it is an exceptional value!  They are transitioning to a new menu as I type this so get to Cena and have the best of the old AND new world!

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5 Types of Capital Funding for Restaurants

financing restaurant real estate

It can be exceedingly difficult to operate a successful business in the hyper competitive restaurant scene. The ultra slim profit margins across the board and fierce outside competition can be a challenge to manage. A simple lack of capital can be the ultimate ruin of even the most successful restaurant. Many inexperienced restaurateurs run into a slew of hidden costs and liabilities that can easily run all of their capital funds dry.

Let’s discuss a few ways in which restaurants can increase their available on-hand capital.

  1. Bank Loans – The most traditional route for most business owners to accrue additional funds for business operations is via bank loans. This route is particularly advantageous for well established restaurants with proven financial success and solid business credit scores. However, this can put start-up and smaller restaurants at a disadvantage in regards to availability to funds.
  2. Business Partners – One way to increase available capital without taking on additional debt is to have a business partner. A reputable and trustworthy business partner can be hard to find, especially when for a business that is still relatively small and unproven. Although it can avoid taking on debt, a business partner will assume more control on general operations as they are buying a ‘share’ of the business.
  3. Personal Funds – It is very common for restaurant owners to use at least some of their own personal capital to fund a new venture . It is a wise way to avoid the burdensome liabilities of debt, especially when opening a new, unproved restaurant. However, it can be awfully risky to invest one’s life savings into a business or borrowing from rich relatives in hopes of turning a profit.
  4. Crowdfunding – A new accessible form of funding for restaurant owners that have a large email list and social media following.  Popular platforms include Kickstarter, Indiegogo and Go Fundme.  Essentially, this is an option to have restaurant patrons become involved in helping to start or grow a new concept. 
  5. Private Equity – The last option of garnering funds pertains to private equity funding, which is essentially a group of private investors pooling their resources together to invest in a business. Private equity investment in the restaurant industry has been at a steady growth for years. Similar to having a business partner, restaurant owners can have access to additional capital at the cost of relinquishing some overall control on the business. The ideal candidates for private equity funding are experienced operators with plans to open more than 15 units. Here is a site with some of the top private equity lenders.  https://aaronallen.com/blog/restaurant-private-equity-firms

Capital Funding Considerations

All restaurant owners whether big or small, can have access to additional funds for their business. The best option ultimately boils down to each restaurant owner’s personal needs and goals for their business. Whether the goal is to grow, consolidate debt, or future renovations; there is a source funding at their disposition.

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{Noah’s Eat} 4Rivers Smokehouse – Bounty of Brisket

Barbecue - Tampa - review

To many, anything to do with barbecue (BBQ) is sacred. There are even entire TV shows and week long festivals dedicated to the subject! The arguments about who has the best BBQ invokes the Hatfield’s and McCoy’s….Eastern vs. Western North Carolina, North vs. South Carolina, mustard based vs. vinegar based, chopped vs. pulled, beef vs. pork. And it’s not lost on me that in some parts of the US the term barbecue is a verb, and in other parts it’s a noun! Pity some of the folks in the north who thought a Sloppy Joe was BBQ. I’ve eaten at countless BBQ joints all through the south, in Texas and even in California (where there are very few!).

Which brings me to 4Rivers, where I have a long and even personal history with, dating back to the first location on Fairbanks Ave in Orlando. John Rivers opened this location as a “Barbecue Ministry” in 2009, around the time we met. I was working on the Cheerwine soft drink brand, the official soft drink of Carolina BBQ. John was buying and bootlegging the nectar of the Carolinas down to Florida from our plant in South Carolina, before Cheerwine was available in the state. He was so dedicated to the BBQ experience; he even brought down the original formula, made with real cane sugar and in an old school glass bottle.  This was also a big differentiator in a state packed with BBQ restaurants.  The other aspect of 4Rivers that makes it unique is the amazing brisket, as virtually all BBQ joints in FLA are pork centric! Simply stated, 4Rivers has the best brisket I’ve had in all of Florida.

The 4Rivers experience is a delight. It is cafeteria like, where you order off the overhead menu.  The sides are equally amazing, many of these recipes from the mind of the owner, and all delicious. On this trip I had the brisket sandwich, collard greens and green beans. Love. The brisket is moist, the collards are seasoned and the beans are perfect. Oh, did I mention the on site Sweet Shop? Two words: Red Velvet. Seriously, everything in a 4Rivers location is made with care and the employees are genuinely glad to be there! You will be glad to be there too.

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Managing Rising Labor Costs

Rising Wages in Restaurant Industry

How business savvy restaurateurs are turning a profit in the highly competitive food service industry  

The economy as a whole has been undergoing a massive shift due to the widespread adoption of technology and automation. The restaurant industry is no different. The reshaping of our modern day economy has created a huge deficit in the workforce of the food service industry. The shortage of workers along with an increasing minimum wage, has created a costly dilemma for restaurant owners.

Cost of Business

The labor costs in the restaurant business can vary depending on the nature of the locale. When operating a fast food style restaurant, one can expect a margin of 25% on labor costs of total revenue. On the other hand, fine dining and table service restaurants typically operate with a margin of 30-40% on labor costs of total revenue.

Restaurant owners are obliged to get creative with their resources in order to keep labor costs down and gross profits up. The last resort of cost cutting in the restaurant business is to pass on the rising costs back on to the consumer; this, can alienate your loyal clientele and negatively impact overall sales. And, it is much harder to push on other substantive operating costs, such as lease costs, as prime locations usually have a waiting list of people behind the current tenant, who are more than willing to pay the rate.

Help Wanted

The process of hiring new staff is costly and time consuming. It involves vetting, interviewing, training, and managing personnel on the job along with all of the other unexpected contingencies. Thorough training and scheduling of staff can help workers maximize their productivity on the job and minimize unnecessary costs such as overtime pay.

Although the federal minimum wage has plateaued at $7.25 since 1991, some states have successfully pushed for higher wages, such as in the state of California, where the minimum wage is currently set at $12 an hour. At the state and federal level, there is the ever-present, looming push for higher minimum wage hikes, which is another pressure point to the bottom line for restaurant owners. Time will tell how operators will handle the inevitable rise in wages for hospitality workers, but we suspect, that particularly in the lower priced point concepts, automation will continue to take on repetitive and mundane tasks to attempt to keep overhead down.  The payback period on a $10,000 piece of equipment can easily be less than one year and much less in a rising wage environment.

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The New All-American Bar

Orlando, FL – Imagine all of the fixings of a high class bistro in an inviting sports bar atmosphere; welcome to American Social Bar & Kitchen. The good folks at American Social are intent on elevating the sports bar’s typical ambiance and menu with a hint of class and sophistication all around. The classic pub fare is upgraded with black truffle pizza, goat cheese croquettes, and mahi tacos.

Paul Greenberg, Rick Mijares, Laurie and Tony Mijares Jr. the founders of American Social Bar & Kitchen, share their vision for bringing a world class bistro sports bar experience like none other. The newest location will open in late spring at 7335 W. Sand Lake Road.