The panel included Leo Bradshaw, Executive Chair at Peckwater Brands, Jack Anderson, Managing Director at Sessions, and Salih Sheikh, Head of Marketing & Brand at Lean Kitchen Network – all weathered experts in the virtual brand and dark kitchen space. 

This post breaks down their key takeaways around utilizing virtual brands to capitalise on your commercial kitchen, maximise profits, and resonate with consumers.

The benefits of virtual brands

Before we discuss how to successfully set up and implement a virtual brand, here’s a quick primer on virtual brands' many benefits to your restaurant or dark kitchen.

Firstly, virtual brands can significantly increase your revenue from delivery – sometimes as much as 800 percent! 

If that doesn’t sway you, creating a virtual brand also allows you to focus on food that’s relevant in your area and target different demographics than the ones you’re used to. So rather than cannibalising your own business, adding a virtual brand empowers you to go after all kinds of customers looking for different types of food.

For instance, a Mexican brand selling tacos could start offering burritos or Mexican lunch bowls, going for a different time of day when people are looking for another type of meal. Or a chicken restaurant could introduce a Korean concept to appeal to consumers looking for that spicy, more adventurous type of cuisine.

Ultimately, virtual brands help you broaden your customer base and reach many new consumers. But how can you ensure a virtual brand drives incremental revenue? That’s where our panel of industry experts comes in.

Strategic partnerships help you unlock your virtual brand’s full potential 

Lean Kitchen Network eliminates the complexity of launching a virtual brand

Lean Kitchen Network partners with owners of underutilised kitchen space to license their portfolio of proven food brands. Salih Sheikh explains how the partnership helps operators successfully launch virtual brands to drive profit.

Salih Sheikh: “A lot of the brands we’re working with don’t necessarily have the expertise to make delivery work as efficiently as possible, especially alongside their existing operation. That’s why we develop restaurant brands, building them in a way they can almost be packaged together and cross-utilising ingredients. In this way, we make it as simple as possible for operators to take on those virtual brands and implement them within their kitchen.”

Lean Kitchen Network also offers digital and in-person training to help you execute all recipes, which typically require only the finishing and last bit of cooking to be done on-site. Additionally, the company sets up restaurants’ supply chains through their existing suppliers. 

“The idea is to switch on deliveries for restaurants that want to increase their revenue, support them, and leave them to do what they’re great at: operating the kitchen and preparing tasty food. The easier it is for the kitchen operator, the more likely the virtual brand will succeed,” Salih says.

Sessions ensures virtual brands resonate with end consumers

Sessions is another organisation that partners with restaurants looking to capitalise on virtual brands, connecting undiscovered brands with a vast audience through their kitchen network. Jack Anderson explains how Sessions derives profitability from the additional transactions and revenue virtual brands create.

Jack Anderson: “The end customer enjoying these new virtual brands is smarter than we often seem to think. Customers recognise a brand with real essence and authenticity, even a virtual one. We work with real brands and founders with a proven track record of success. First, we find the restaurants that have done the hard yards, the brands with the essence customers value. Then, we optimise their operations to deliver the virtual brand profitably within their existing kitchen and alongside their ongoing business.”

According to Jack, you can only drive revenue by resonating appropriately with the end consumer and solving any logistical challenges you may have. That’s key to driving profitability.  

Peckwater Brands makes sure restaurants’ labor and capacity are on point

Peckwater Brands, too, partners with existing brands, providing them with fully-serviced virtual food concepts that include branding, platform listings, suppliers, recipes, training, and technology. Leo Bradshaw clarifies how the partnership helps operators implement virtual love brands.

Leo Bradshaw: “One of the most important things when setting up a virtual brand is understanding what’s going on in the operator’s kitchen already. We work with our partners to find out what they are capable of and what they are looking for. There are all kinds of great brand matches you can make. For instance, a French fries restaurant could get into fried chicken as they have great expertise and capacity to use fryers. But there’s no use in teaching them how to prepare sushi, as it’s a completely different type of offering. So, understanding the restaurant's flow, the local area, and consumer needs is essential.”

Leo’s also convinced that your attitude towards virtual brands and delivery plays a crucial role in your success. Virtual brands only work when you take them seriously and see them as a way to expand your business. They’re not likely to succeed if you see them as an add-on or dirty little secret at the back of the restaurant. Consumers will figure that out in no time.

Using data to choose the right virtual brand for your restaurant

Teaming up with a partner like Peckwater Brands, Sessions, or Lean Kitchen Network provides you with equipment or kitchen space. But that’s not all. These partnerships also come with helpful data insights about demographics, day parts, local consumer needs and trends, and online ordering statistics.

Leo: “Creating a successful virtual brand starts with data and finding out what the end customer wants. That means looking at the stats and trends in your local area and potentially changing recipes to meet the consumer’s needs. Everything may start with data, but your brand will only thrive if you understand at a local level what your customer wants and how you can deliver it.”  

Jack: “When we work with partners, we tell them they can make extra money by working with our virtual brands and us. But more importantly, we can also give them the insights and data they need to make informed decisions. Not just about their virtual brand, but their entire business.”

Salih: “That’s right. Working with delivery aggregators like Deliverect provides you with different avenues of data. All these additional insights can help you determine which virtual concept may be the right fit for you.” 

Virtual brands are nothing less than transformative

Creating virtual brands is a powerful strategy for any restaurant or dark kitchen looking to maximise kitchen space and bring in additional revenue.

There are different approaches to virtual brands depending on your unique business needs. For example, single-site, family-run restaurants view virtual brands differently than restaurants with thousands of locations across the country. 

But whether you see virtual brands as supplementary to your existing restaurant or as a standalone, partnering with other experienced operators and licensing proven brands sets you up for success from the start. These strategic partnerships help you cut costs, unlock different day parts, attract more customers, and make your food business more flexible to meet market challenges.

Start boosting your business today and explore the Deliverect Marketplace, packed with exciting virtual brands to help your business thrive.

Interested in hearing more about how to increase sales via virtual brands? We’ve got a few live sessions at Restaurant & Bar Tech LIVE (19th - 20th Oct @ ExCel, London) so pop by!

Joe Heather as a keynote speaker:

• Location: Keynote 5

• When: Wednesday, 19 October @ 15:30

AND

• When: Thursday, 20 October @ 12:30

• Location: Theatre 6

OR

Join Chris Fletcher on a panel, discussing Amplifying your customer experience with technology.