DoorDash, like other food delivery platforms, runs on the concept of letting customers order food without interacting with restaurants. However, a new DoorDash pilot is flipping that concept on its head. Virtual only restaurants, which are being piloted in the San Francisco Bay area, would allow restaurants to serve food without interacting with customers—ever.
DoorDash Commissary
DoorDash built a 2,000 square-foot multi-kitchen space in the Bay Area for this pilot. The idea is to rent out the four kitchen spaces to restaurants interested in staffing a delivery-only location. The first signup on the list went to Ben Seabury from Little Star Pizza, an upscale restaurant. The pizzeria launches as “The Star” in San Jose as a delivery-only location.
DoorDash doesn’t just charge standard rent for these kitchens, either. Instead, the rent for the pilot locations is a percentage of sales, making it very attractive to restaurant owners like Seabury. According to Reuters, deliveries already comprise 20 percent of his business. Some nights, DoorDash reported on their blog, as much as 70 percent of his orders come from delivery. He believes the DoorDash commissary can help him navigate the changing climate of American dining.
Other Virtual Only Restaurants
DoorDash’s model for virtual only restaurants isn’t new, however.
Munchery, the San Francisco-based food delivery platform, was one of the first to use virtual only restaurants. It began doing so in 2010. Deliveroo is planning to use its recently acquired 300 million British pounds of funding to add to its virtual kitchen facilities.
GrubHub also reportedly invested in Green Summit Group. The private company has operated virtual only restaurants in New York and Chicago. GrubHub, however, said it doesn’t intend to move toward virtual only models anytime soon.
Why Virtual Restaurants?
There are several reasons virtual restaurants can be appealing. For one thing, it will allow restaurants to expand into new potential markets without the overhead costs of setting up an entire new restaurant. If the pilot goes well, DoorDash intends to expand into other cities. THis will allow restaurants to expand their markets without the need to do anything more than hire a kitchen staff.
This shift will, of course, be beneficial for customers who may not want to drive a long way to a given restaurant but who also live too far away to have food delivered to them via DoorDash either.
On the driver’s side, the virtual kitchens could make work faster. Instead of competing with customers and waiting in line at restaurants that may or may not remember to actually cook the delivery order you’re waiting for, you’ll be able to walk in to a dedicated DoorDash delivery kitchen, pick up the food, and be on your way. In fact, since earnings for both the restaurant and DoorDash are tied directly to how many orders they can move through the restaurant, it will be in everyone’s best interest to get you on your way as quickly as possible with the correct order in hand.
