QSR September 2022

DEPARTMENT INNOVATION

SeeingGhosts, andProfits With so much competition in the dark kitchen space, one company is offering resources for operators to not only dive in, but succeed as well. B Y T R E V O R G R I N E R

O ne of the historic barriers to breaking into the restaurant industry is securing capital to get off the ground. The cost of equipment, leasing or purchasing a build ing, and properly staffing a brick-and-mortar fast casual typically runs between $250,000– $400,000, according to Forbes. At its base level, this is what’s fueled much of the ghost kitchen movement, says John Meyer, CEO of Ghost Financial. It provides a starting point for operators who don’t have the finan cial safety net larger brands have access to. “Ghost kitchens are revolutionary in that they have lowered the barrier to entry for food ies with a dream by taking the cost and timeline down to start a restaurant from $500,000 and an entire year, to $25,000 and 30 days,” he says. Ghost Financial is a f intech startup that provides loans, insurance, payroll, and other financial products to ghost kitchen operators. Meyer started the company after venturing into the expanding arena himself. In late 2020, Meyer, who is based in Austin, Texas, launched low-carb ghost kitchen con cept Keto Kitchen as a “side project.” Within 60 days, the business was profitable, which led him to seek out a loan to expand.

The ghost kitchen world might be a lower-cost one, but it doesn’t come without its pitfalls.

it could provide as much as a 10 percent bump to profit margins. “Anyone can start using this card as long as we can verify that you have a legitimate operation, he says. “The card requires no credit check and has zero interest, meaning you can apply, get approved, and start using it to get your business off the ground in a fraction of the time it would usually take.” The company also supplies ghost kitchen insurance, loans for expansion, and a payroll system tailored to these spaces. Carl Orsbourn, co-author of Delivering The Digital Restaurant , says all of these products are helpful for independent operators, who have different needs than established brands trying to capi talize on the ghost kitchen boom. After spending years researching digitally based restaurants for his book, he says there are several viable ghost models, but it really comes down to individual needs. “Having an entity like Ghost Financial is helpful because they can make sure they [ independent operators] don’t waste time, energy, and resources in the wrong spaces,” he says. That’s precisely what Meyer is looking to help operators avoid. He says corporate brands have huge legal and financial teams that

After striking out at several major banks, Meyer says he real ized there was a need for financial services dedicated to the ghost kitchen space. “I walked into a big bank and asked for an expansion loan and the bank manager literally asked me what a ghost kitchen was,” he says. “It’s very clear the traditional banking sector has no idea what is going on as it relates to the evolution happening in this tril lion-dollar food space.” “I saw how tight margins were and how expensive it is to run a successful operation,” Meyer adds. “I dedicated my time to figuring out how to make restaurant operators and owners more money.” Ghost Financial’s services were designed with operators in mind. One of the insights Meyer gleaned from his work was how much money was spent on inventory without reaping any benefits from massive, monthly recurring expenses. The end idea being the Ghost Financial charge card, which offers 1 percent cash back for inventory expenses and has the potential to bring in thousands of dollars in returns, Meyer says. He estimates

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