One Question Friday: How Do You Scale A Ghost Kitchen Business?

I feel like I can rule the world, I know I could be what I want to I put my all in it like my day song On the roadless travel, never looking back This is one question Friday where we answer a grand total of One question from a listener. Uh one lucky listener gets to ask a question. Me and Sam are gonna give a give our Raw off the cuff answer. We haven't seen the question before. Jonathan has it.

And um These are our tips and they are just the tips. I like to say. We try not to go too deep. All right, Jonathan. You wanna hit us with the question? Hey guys. My name's Brian and I'm calling about ghost kitchens.

I've First learned about ghost kitchens on Todd, so thanks for that. So I developed a model to implement a couple of ghost kitchen concepts into my restaurant. I had great success, lifted my margins over four hundred fifty percent.

over six months with just one of the concepts. Now I'm looking to scale the business by offering licensing agreements for operators in other markets to use these concepts. Including the branding, recipes, et cetera. It's very simple. You find an operator that wants a new rev new stream and wants to do a ghost kitchen and they can start slinging product within a matter of weeks.

I've researched the model that much larger co companies are using where they leverage celebrities to sell these concepts. My model's better. It's cheaper. And the recipes are second to none in the space. Assuming you didn't have the following in the platform that you do, how would you go about selling this idea to restaurant operators across the nation?

Where would you start? Sidebar. I love what you guys do on the pod. Sam, I just signed up for copy that. And I can't wait to get started. Good man.

So What's his name, by the way? We're gonna call him Joe. No, it was uh Yeah, I don't remember. Thanks for the question, Ryan. Yeah. Two weeks in a row, we have one question and we do not know the guy's name again. What uh it sounds smart. It sounded like he's got his game plan together, but so let's recap. The business is is what?

All right, so he owned a r uh here's what my what I understood. He owns a restaurant. And then He added in a ghost kitchen, meaning he like created a a ghost brand. Which is like what that means is If you go on DoorDash or Uber Eats or one of these delivery apps.

you can order from a restaurant, but there's no physical restaurant for that thing. It's just a virtual brand. And his restaurant would then like have the packaging like so let's say my normal restaurant is Sean's Pizza. Well then I could also have a ghost brand. Called

Sean, you know, uh you know, silly sandwiches. And silly sandwich if I get an order from silly sandwiches. My restaurant crew will just like package it up as a silly sandwich order and it'll be ready to go. And so I'm kind of running multiple restaurants out of one restaurant. is the idea. And why does the restaurant owner want to do that with them versus on their own?

So what he said was um He I don't know if he created that ghost brand or he added that ghost brand, but he said my it improved my restaurant margins four hundred fifty percent. So he forexed his restaurant's margin. So let's say a normal restaurant has I mean that sounds unbelievable, right? Like

Let's say he had I don't know six percent margins before Uh, you know, don't do public math, but That basically forexed his margins. I'm not not sure exactly what he's talking about here. That's cool, but you know what business would be way better is do you remember Alex Hermaz's business of the gym launch. Didn't launch. Exactly what I was gonna recommend.

Go ahead. Well, I think he j I well, maybe you weren't gonna say this. I was gonna say Go listen to the episode. Um He that what his model was he had a gym and he was like all right

How do I get my gym to be more profitable? And then he figured out like a sales method to get his gym If he opened up a gym, he figured out a sales method that would get him to have a bunch of customers Paying high prices. And making a bunch of money on a gym. And his friend uh at a mastermind one day was like

Yo, you need to like not do this. You need you don't need to open up fifty gyms doing this. You need to go teach other gym how to do this. Like Your product isn't the gym, it's a sales process. To make any gym more profitable. And so that's what he did. Then he created gym launch. Which would basically advertise, say, Hey, are you a gym owner? I can help you make an extra

Hundred thousand dollars year guaranteed. Um using my sales method to get you more customers paying higher prices. And they'd be like, All right, cool. And then he would fly out to that gym. He would spend the next, I don't know, couple of weeks or whatever implementing that process so that they would then have more revenue, more customers.

coming in using his thing and he would teach them Hey, here's how you do it. Here's your offer. Here's your Facebook ads. When they come in, here's your sales script. Then you sign them up for a free trial, then how here's how you close them, then here's how you upsell them protein powders and this other stuff. Here's how you upsell them training packages.

That's the that's the sales process. And he built a multi million dollar business doing that. If you did that for restaurants. To teach them how to do this. That sounds like a business. N one hundred percent no brainer. That's what I would do, except

So you said that Alex would fly out there. Eventually he wasn't actually flying out there. Eventually it was basically it w it's not fair to call it a course. But he would Yeah. That was part of it. So he would teach you stuff, but then also he would be like, Here's the Facebook ads, like I've already made them for you. You can use my Facebook ads that I already made. Here's the drip email sequence. Here's the script that we use. Here's everything.

And Then he would say, Oh, by the way, if you don't want to do this and you just want me to run the ads, fine, pay us and we'll do it. And here's how you sell protein. You want to sell protein. And by the way, the protein that sells best, we just went and bought it. So we already own it. So if you want to be on a subscription and we'll just send it to you and here's how you sell it, we'll just go ahead and do all that for you anyway. So I would one hundred percent Do that.

We On that pod, we go, Alex, what's a good market for uh Jim Launch Buffer blank and we actually didn't have that many good uh answers. The answer's This restaurant business. This is the answer.

This is a great example. And like Lucky for You know, our Our buddy here, Ryan. Connum for a second.

Um That There's like a pretty great blueprint to follow. Right. Like there's a blueprint that he was very public about how he did it. He's now exited the business. And also, by the way, this is what his business does now is it invests in other people doing this model And he's like, dude, I already know how to do this. I can

Scale it up. Now you have to be at some scale before he'll do it, but like He gives away the free content. um on how he structured Jim Launch to do to be able to do this. So that's I think what you should do, which is like restaurant launch or ghost The ghost kitchen process, the ghost kitchen system.

Which is basically, hey, if you're um if you're a independent restaurant And Trust me, it's tough. Foot traffic's tough with Covet. It's tough. It's blah blah blah. Everyone's ordering delivery. Um Here's how you can increase your margins, blah, blah. Here's how I did it.

You kind of open up your financials and you say, look, I was making thirty two thousand dollars, you know, um a quarter doing it this way. Now I make fifty eight thousand. And that extra bit is from my ghost kitchen concept. And here's how I do it. And basically they can either pay you for the course on how they can do it, or you'd hit them with the Alex Ramosy where you're like

If this sounds too complicated. W I can also do it for you. And if you qualify, I'll do it for you. What he did was risk free. He's like, Here's my offer for you. You pay me nothing. I only get money.

Once I've increased your sales by over thirty thousand dollars. thousand dollars. So once you've made That much more money off this. then I get to get my cut of thirty percent of whatever the total is that that we get.

And I'm so confident that I'm gonna be able to raise your sales that I'll do that for you. I'll take the risk on that. How does that sound? And they're all like, yeah, you're gonna fly out here. You're gonna t implement your process, it's worked for you, and you're saying that I only pay you once I'm making all this extra money. That's a pretty pretty damn good offer. And so you could do a similar thing for the restaurant. I saw a guy the other day do a sales process where he was like

Trying to sell uh a service just like this, and the let's just say the little restaurant owner was like uh I don't know if I want to do that and he goes That's fine. But how about this? We you implement what I say. And uh If it works.

I get a split of the revenue and the guy goes, Great. I'm one hundred percent do that. What's the split? And Then the seller goes, Well How about fifty-fifty?

And the buyer goes. I don't know, man, that's a lot. And the seller goes, Well, but I'm I'm you know, it's fifty fifty, it's free money for you. I'm doing all the work. And the guy goes, Well what if it blows up, you know, like that you're gonna get a lot of money. And then the seller goes.

You know, I think you're right. I well he goes he goes, it might blow up, but I'll tell you what, you might be right. Fine, we'll go back to the original deal. You only gonna pay five thousand dollars. And the guy goes, Okay, fine It was like it was like the best sales sequence like it totally worked. I was like, Oh my god, that's beautiful. Yeah.

Yeah, I would totally do this business as well. I think that that that's way better. I would continue running the main thing. Hm. Just so you're in the know and like getting results that you could post to social media, but uh That's what I would do too.

Are there any other industries that jump out now that this could work for? Probably physical probably physical therapists. I would imagine doctors' offices and physical therapists. I think real estate brokers. So um Every real estate broker is like running their own little small business. Um, sometimes as part of a brokerage, sometimes their own brokerage.

And uh there's a whole process to basically like, hey, you should leave Caldwell Banker. They're taking half of your commission. Um The I I spun out my own. Here's how I did it. Here's how much more I make. And I will spin you out.

um of this big brokerage firm. I'll set up your website. I'll set up your back office legal legal structure. I'll set up your marketing package. I'll show you exactly how this all works. And you know, like instead of Coldwell Baker taking half of your commission, I will take Five percent of your commission. Uh it you know, to do this. So I think you could basically I think selling a sales system.

Is a um It's a pretty good business to be in in general. Yeah, I mean you're it's it's like Very, very high margin. I think that a lot of course businesses

Top out. At a certain level, I think when you're selling a sales cycle or s or a sales product like this, I don't think you're I think the the cap is way higher. By the way, also now that Alex Carmozy's not doing gym launch, you could also just do lit gym launch again. Like you know, now that he's like checked out doing other shit, like you know, you could have always competed with him, but like He put a playbook out there. He exited the company. There's it's still running, but like

You could just do it again. You could literally recycle his business. I I think this is so underrated, just recycling business ideas. Um Once the person has exited And yeah, they've let their foot off the gas or they've expanded. They've moved up market. It's like they just leave you an exact playbook on what to do and um

More often than not, that timing still will work. Uh Dude, we we had a couple at the hustle we had a few companies that would just copy and paste our content and just create a new newsletter and uh They some of them got traction. Yeah. Edit that out. I don't want people doing that now.

Well, it doesn't work in the end. It it's a very short term thing. You know. Um but Alright, that's it. You got the tip. Yeah.

I feel like I can rule the world, I know I can be what I want to I put my all in it like my day song On the roadless travel never looking back

What you see above is a preview of the first minutes. One unlock costs 3 credits and covers this episode forever: full segment and word-level timestamps on this page, plus .txt, .srt, .vtt and word-level JSON downloads, as many times as you like.