Foodservice technology investment
Gohost is an online platform that connects restaurant owners with extra capacity in their kitchens to other food business owners who need to rent commercial kitchen time. Restaurant owners can also list their dining rooms for people looking for event space.
For restaurant and commercial kitchen owners, the shared economy presents an opportunity to provide a valuable alternative source of income, without adding additional staff, expenses or hours to their busy day.
New food entrepreneurs benefit by renting kitchen space on an as-needed basis, without being locked into long-term leases or making a significant investment into equipping their own kitchen.
The challenge for food entrepreneurs
Starting and running a successful food business is no easy feat. For most people, the costs of getting started in the food service business can be prohibitively high. This is especially true if you're looking to open a brick-and-mortar establishment. Between lease costs, build-out expenses, and equipment purchases, most restaurateurs simply don’t have the capital on hand, and most lenders and investors refuse to fund food businesses.
As many as 80% of new food businesses fail within the first two years of operation, as most restaurants only start to turn a profit within three to five years.
Most people who start their own food service business have a culinary background but little to no business background.
While this is certainly helpful when it comes to developing menu items and cooking delicious meals, it's not enough to run a successful restaurant. A food business is just like any other business — it requires careful planning, management, and execution in order to be successful.
And even if the food entrepreneur jumps all the hurdles to start up their business, there's no guarantee that it will be successful. The average restaurant profit margin usually falls between 3% – 5%.
The profit margins are thin, and by the time a new food entrepreneur gets up to speed on the business side of things, it’s often too late. They need a convenient and inexpensive way to test their concepts, build their brand and gain a foothold in the marketplace.
The challenge for restaurant owners
It's no secret that the restaurant industry has been hit hard by the pandemic. In fact, estimates indicate that up to 80% of restaurants are now in debt. Many restaurants made the quick pivot to delivery and takeaway options. But other factors, including a labour shortage (which is at a record high of 11.9%) and supply chain interruptions (which have resulted in a tremendous increase in the price of goods) are still plaguing the industry. Additionally, many people are simply hesitant to go out to eat right now because of increasing living expenses.
For those restaurants that have been able to remain open, 30-40% of them are expected to close in the next three years.
For most restaurants, kitchens are only busy during meal times. This leaves big gaps of time when the kitchen is barely utilised or completely idle. This can be a problem for restaurateurs who are trying to maximise their profits.
But that gap can also be a tremendous opportunity. That’s where Gohost comes in.
The Gohost solution
Gohost is a unique new platform that helps restaurant owners make the most of their kitchen downtime. By connecting restaurants with under-utilised kitchen space to food entrepreneurs who need somewhere to cook, Gohost helps to create new opportunities for both groups.
Not only does this provide a source of additional income for restaurants, but it also makes it easy for food entrepreneurs to find the space they need to prepare their meals at a reasonable cost.
For these new entrepreneurs determined to turn their culinary dreams into reality, Gohost presents a way to drastically minimise the risk by lowering startup costs by as much as 60%.
Easy, automated matching system
Gohost is more than just a directory. Our matching process helps to find the perfect match for both groups. Every renter must meet the required standards to work in a commercial kitchen, such as food handling certificates and insurance coverage. We only send kitchen owners verified leads in good standing through the Gohost platform.
And because Gohost's automated matching process makes it easy to find the right fit, there's no need to worry about coordinating schedules or haggling over price.
Affordable pricing
Gohost provides a flexible, cost-effective solution for both short-term and long-term needs. We have a monthly subscription-based model with many add-ons and an excellent opportunity for future cross-selling.
The opportunity
High demand for foodservice businesses
Foodservice is a vital industry. It’s part of every community, and plays an important role in our daily lives.
Meal delivery services have seen massive growth as restaurants turned to platforms like UberEats and DoorDash to keep serving their customers. These apps bring a more convenient way of ordering food than finding a restaurant’s menu and calling them over the phone.
There are no signs that customers will turn away from the ease these platforms provide.
The global digital food delivery market size is expected to grow from $35 billion today to $365 billion by 2030¹. Brands may have dine-in services in a few select locations, but are looking to utilise “ghost kitchens” to serve their delivery markets.
There are over 400,000 independent restaurants, catering companies, and coffee and snack shops across Canada and the United States. All of these businesses have kitchens that can sit idle for hours at a time.
Here’s the breakdown:
- Single-location restaurant owners in the USA: 162,024
- Catering companies in the USA: 139,622
- Coffee and snack shops in the USA: 83,192
- Single-location restaurant owners in Canada: 38,873
- Catering companies in Canada: 5,621
- Coffee and snack shops in Canada: 8,062
Timing
We’re filling a major gap in the industry at the same time as a forecasted surge in the demand for digital food delivery.
By embracing the shared economy through Gohost, restaurant kitchen owners and food entrepreneurs can stay ahead of the curve and remain competitive.
An exciting technology investment opportunity
Gohost is looking for additional investors to help finance our next phase of growth. Talk to us to find out more about Gohost’s potential, and become a part of our exciting journey.
References
- “Global Digital Food Delivery Market to 2030 - Featuring Just Eat, Postmates, Uber Eats and Delivery Hero Among Others - ResearchAndMarkets.com”