Virtual Brands for Restaurants 101: Increase Your Profit Without Increasing Your Costs

Consumer behavior is constantly changing and evolving. People are becoming more open to trying new flavors and ordering online from restaurants they may only be familiar with through online content. 

According to data from the National Restaurant Association of the United States, 54% of adults say ordering food delivery is essential in their lifestyle, rising to 72% among millennials.

The restaurant-to-consumer delivery segment accounted for 98.4% of the global online food delivery market in 2021.

This technological scenario, influenced by inflation and the pandemic, encourages restaurant and dark kitchen owners to consider new strategies, such as virtual brands, to adapt and reach new customers efficiently and cost-effectively.

What are virtual brands, fiction or reality?

Virtual brands are a new and growing concept in the restaurant industry open to all. Simply put, it consists of creating a brand that only sells its menu through digital platforms, which has gained traction since the pandemic.

Virtual brands are frequently managed by existing restaurants that see them as a way to diversify their operations, reach new diners, and increase profits.

Burgers, pizza, and chicken wings are popular because they go well together and don't require special preparation.

Additionally, although the idea may seem cutting-edge or trendy, it strikes a balance between two essential components: the virtual and the real (human).

The food is real. The brand is virtual. The customers are real, the platforms to order are virtual, and so on.

Virtual Brands and Dark Kitchens are related

Another concept closely related is Dark Kitchen, which refers to a restaurant kitchen that is only used to make meals for sale and is not accessible to the general public.

The heart of the business, the command center, is a dark kitchen. It can host several virtual brands that coexist in the same location but have different communication styles, target markets, menus, and other factors, increasing the operation's profitability.

The global food delivery market has grown to be worth over $150 billion, tripling since 2017. 

8 tasty advantages that virtual brands provide:

If you own a restaurant or a dark kitchen and are thinking about creating a virtual brand, consider the following advantages.

1. New business markets: by providing a different menu in your virtual brand, you will be able to appear in new search results in delivery apps, thereby expanding your customer base.

2. A more efficient operation: you can start the business with your existing kitchen and staff without significant investments.

3. Flexibility: you can try new sales and distribution channels to increase your revenue 

4. Experiment with new menus and flavors: if you've discovered a new or trending market, such as vegan food, you can investigate and improve your offering under a new brand.

5. Possibility of expanding your business: when demand increases, you can boost your kitchen resources or hire more employees without opening new locations

6. Reduce Food Waste: Using the same kitchen and personnel reduces the amount of food waste.

7. Lower investment: less expensive than opening a store

8. Increased revenue: as a result of new targets and diversification of your offering
   

Virtual brand challenges to consider

Although the virtual brand menu is full of opportunities, there are some challenges and points to keep in mind if you're looking to take your brand to the next level.

• Identifying the target audience

• High competition, both in the geographical area and online

• Financial capability to develop your brand while meeting operational expenses

• Expertise in working in a new culinary category

• Choosing a delivery platform

• Management system between your kitchen and delivery platforms

• Kitchen staff training

• Food safety protocol

Developing a virtual brand

A consistent and easily identifiable virtual brand is crucial for connecting with customers and being top of mind when searching for a place to dine.

Here are ten marketing tips for your brand.

1. Identify and clearly define your target audience

2. Develop the menu offering

3. Define distinguishing features

4. Create a communication plan

5. Choose a brand name and design a logo while avoiding copyright infractions

6. Photograph your dishes professionally

7. Research and choose a delivery platform

8. Build a digital presence through a website and social media

9. Implement payment options for online sales

10. Set a budget for expenses and investments.

Enhance your virtual brand with these three marketing actions.

#1 Add a pinch of flavor to your tone:

It's crucial to develop a distinct voice and tone to help your brand stand out from the competition. One way to achieve this is by analyzing the communication strategies of your competitors and avoiding replicating them.

Creating a unique and recognizable brand personality is essential. One way to do this is by conducting writing exercises that focus on communicating your dishes in a way that aligns with your brand's distinct personality, tone, and style.

#2 Make a vitamin D-rich content. (D by distinctive content)

Hold a photo shoot and make sure your photos are craving and appealing. Experiment with different photographic styles and props that are related to your brand.

You can add a personal touch to your photos by placing icons around them, using filters, or using unique typography.

In addition, share stories or curiosities about your food on social media, and consider collaborating with food bloggers.

#3 Customer reviews or posts to improve your reputation

Encourage your customers to leave reviews or post about how much they enjoyed your food on their social media accounts.

Reviews allow you to improve your reputation while receiving feedback on what you can improve and what you are doing well.

As a restaurant owner or employee, it can be overwhelming to keep up with the constantly changing industry. However, it's important to remember that you've already captured a loyal audience with your menu and that many more potential customers are eager to try your new offerings. 

Let us assist you in seamlessly integrating your virtual brand by implementing online ordering systems, integrating delivery platforms, and more.