Revised Project Proposal

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Ghost Kitchen Business Project

Lula Gillespie

Professor Amino

BUS 375: Business Management

August 1, 2021

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Ghost Kitchen Business Project

Project Summary

The COVID-19 pandemic has demonstrated the overreliance of numerous industries for

specific demands resulting in the economic downfall as Governments imposed restrictive motion

and interaction regulations. Among the most affected industries is the hospitality industry, as it

experienced among the greatest losses in profit revenue and workforce. According to Leone et al.

(2020), numerous industry leaders experienced over 89% reduction in revenue income with others.

However, the author further states that the food industry has high recovery prospects considering

the integration of technology in on-location deliveries. Recognized as ghost restaurants, they are

cooking facilities that offer and produce food for delivery only. With the unlikely global

management of the pandemic virus, they are prospected to be lucrative businesses in the short and

long term.

The prospects of ghost kitchens are supported by industry professionals who identify ghost

kitchens as a $1 trillion industry by 2030 (Lee, 2021). The business project is proposed due to the

large cost reductions and varied consumer markets depending on the menu. Moreover, developing

an online presence is simplified with increased reliance on social media for information. Currently,

the CDC and other federal and health agencies are attempting to control the spread of the virus and

exploit the restrictions that can offer the business project the needed opportunity. The project's goal

is to reduce the cost of restaurant operations and expand to other regions. The goals can be

attained, ensuring that the project’s objective is to exploit the restrictions and attain a specific

consumer base. With the set objectives, the project can attain its goals prior to the industry’s

estimated peak financial year.

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Project Structure

The project will assume a functional approach with each department or specific task having

its supervisory leader. The proposed structure was selected due to the diverse sectors that require

attention. For example, the ghost kitchen will require a marketing team to create online awareness.

Alternatively, an IT team will develop the applications used for ordering and tracking orders

(Handzic & Bassi, 2017). Lastly, the proposed project will have a financial and acquisition team,

both of which will have different members addressing various aspects of the project. Some of the

advantages of the structure include the grouping of teams based on functionality, promoting higher

performance (Handzic & Bassi, 2017). Additionally, each team is accountable for delays,

undesired outcomes and appraisals, and the outcome is a well-defined hierarchy system valued by

the project participants. Finally, with limited duplications, job descriptions are clear, thereby

allowing for the development of clear paths for staff.

However, the structure is limited by the higher costs due to specialized personnel and the

increased number of staff members within the project. Moreover, critical decisions may be delayed

due to numerous communication and bureaucratic channels (Handzic & Bassi, 2017). Regardless,

the existing functional approach to the project’s management will offer the needed accountability

and integrity (Handzic & Bassi, 2017). The project comprises three essential sections: the kitchen

where food is produced, the delivery team, and the IT team. Focusing on the identified sections

will allow for the smooth operation of the ghost kitchen.

Project Stakeholders

As previously mentioned, the COVID-19 pandemic restrictions have limited numerous

businesses from securing profitable operations. The effects have also impacted the general public

as numerous people are unable to enjoy professionally prepared foods. The project is expected to

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attract consumers of fast foods as well as full course meals. With such a broad consumer market,

the prospects of success are high if the product quality is maintained. Newly formed companies

such as DoorDash and Saladworks have demonstrated the industry's potential (Uhl‐Bien, 2021).

With numerous businesses experiencing foreclosure, commercial real estate has reduced in value

allowing for the proposed business project to meet a wide variety of consumer’s demands.

While the business will mainly focus on foods it develops, it will also offer the platform to

other private cooks with the objective of creating a large professional staff. Other targeted

stakeholders include external companies seeking an advertising platform. The purpose of the

stakeholders is to grow the business’s market share and awareness. The approach has numerous

benefits, such as attaining the proposed goals of opening numerous other branches such as current

market leaders. The economic prospects of the business will also take advantage of the current rise

in delivery services, thereby attracting and collaborating with companies such as UberEATS

allowing the brand to grow.

Evaluation

When the business proposal is assessed with the key operational details identified, it is

evident that it takes advantage of the demand for fast-food restaurants. The COVID-19 pandemic is

expected to continue limiting numerous industries. However, with the opportunities presented by

ghost kitchen, success is highly probable. The project will not be large scale, thus reducing the

initial capital needed to start operation. By assessing companies such as DoorDash, which is

mostly present in California, numerous other states can benefit from the food services offered

(Khan, 2020). The industry is not fully exploited, offering lucrative and expansive prospects. The

probability of success is further increased by working with delivery companies such as Uber,

which has had a good financial year of 2020 (Khan, 2020).

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Conclusion

The proposed functional project structure is preferred for its great advantages over the

limitations. The small scale of the project will allow most of the drawbacks to having limited

effect. Such professional and dedicated teams are expensive but attain the needed results for the

current position of the target population. They are currently the key trend in the food industry, with

the pandemic and government regulations driving the market. Overall, it will be able to reduce the

negative impacts in the agricultural sector and supply chains.

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References

Handzic, M., & Bassi, A. (2017). Knowledge and project management. Springer.

Khan, M. (2020). Technological Disruptions in Restaurant Services: Impact of Innovations and

Delivery Services. Journal Of Hospitality & Tourism Research, 44(5), 715-732.

https://doi.org/10.1177/1096348020908636

Lee, W. (2021). Council Post: Ghost Kitchens: Reasons To Adopt This Type Of Food Delivery

Model. Forbes. Retrieved 1 August 2021, from

https://www.forbes.com/sites/forbesbusinesscouncil/2020/12/11/ghost-kitchens-reasons-to-

adopt-this-type-of-food-delivery-model/?sh=2e2b731d5e54.

Leone, L., Fleischhacker, S., Anderson-Steeves, B., Harper, K., Winkler, M., & Racine, E. et al.

(2020). Healthy Food Retail during the COVID-19 Pandemic: Challenges and Future

Directions. International Journal of Environmental Research and Public Health, 17(20),

7397. https://doi.org/10.3390/ijerph17207397

Uhl‐Bien, M. (2021). Complexity and COVID‐19: Leadership and Followership in a Complex

World. Journal Of Management Studies., 58(5). https://doi.org/10.1111/2Fjoms.12696