Virtual kitchens are poised to disrupt the restaurant industry - Business Insider

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Virtual kitchens are poised to disrupt the restaurant industry — and VCs say it's a smart investment (via KauffmanFellows)

, an early-stage VC fund based in Menlo Park. Grishin Robotics has invested in Zume Pizza and has been actively tracking the food-tech sector in the global markets.

The virtual kitchen model of expansion is akin to the lean startup model, allowing entrepreneurs to bootstrap their new culinary venture by leasing the virtual kitchen's infrastructure. Melia Robinson Regional chains can experiment better. They can expand by spending a limited budget and start serving customers in geographical areas where it was not feasible otherwise.

Sit down restaurants with under 10 branches will likely be hurt the most, especially if they don't have an established brand. It's going to be very difficult for them to compete with virtual kitchens. Their customers primarily come to them to eat rather than the experience, so the food is essentially commoditized. These types of restaurants are very vulnerable to newcomers coming around with the same food at lower costs.

 

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