Hong Kong’s restaurants haven’t had it easy over the past year with the pandemic battering business and sending customer numbers plunging as people stay at home.

The very notion of opening a new restaurant in such a climate might seem insane – but there is one model of restaurant that has succeeded in the downturn because it involves no rent, no shop front, no dine-in areas, and no waiters. Just food and delivery.

The “ghost brand” is a relatively new business model for restaurants to develop a second brand that offers a different menu. Using existing resources such as kitchen and staff, it exists only virtually to save costs and drive revenue.

A ghost brand allows a restaurant operator to test a new business idea with minimal additional capital spending. Without a physical restaurant, the operator only needs to worry about the menu, the food supply, the market demand, and the logistics of delivering the food.

This model not only allows restaurants to create new brands at low costs. It also opens up opportunities for non-restaurant operators to launch restaurant brands easily, leading to more crossover among different sectors. And with the pandemic generating a boom in home delivery, it may be the perfect business model for our times.

Inspired by the concept of virtual restaurants, foodpanda began hunting for a catering partner to work with them in creating its first ghost restaurant brand, with the primary aim of offering more meal choices to customers.

And it was through various business events run by CLP such as the 6 Senses Experience Zone at HOFEX and the Central Kitchen Fair that foodpanda made contact with LA CASA. 

CLP Power Senior Director – Customer and Business Development Lena Low says one main purpose of the events is to offer opportunities for catering partners to explore business opportunities while learning about CLP’s support for the industry. “Through creating various platforms and fairs to introduce smart, green culinary concepts to the catering industry, we can bring together new partners to promote the latest business concepts,” she says. 

Established in 2012, LA CASA is a central kitchen service provider, with a kitchen in Kowloon Bay and an Italian restaurant in Sheung Wan specialising in burgers and pasta.

Explaining how it came to choose LA CASA as a partner, Ching says it also gave Pasteria’s customers the option of picking up the food at LA CASA’s Sheung Wan restaurant.

"Their restaurant is located close to the central business district of Hong Kong, and their decent shop front is a big plus for customers and the delivery team to pick up orders,” he says. “Besides, pasta is always a good idea."

Delivering results 

As a pioneering business venture, Pasteria has proved to be a successful case in Hong Kong, using innovative concepts in the city’s catering industry and bringing in more choices for customers.

In the space of six months, Pasteria has been able to reach its sales target and receive fantastic view, click and order rates on the platform. It is expected to achieve higher sales growth in the coming year with seven outlets covering Hong Kong Island and Kowloon sides now open.​

Encouraged by the experience, Ching says he is looking forward to bringing in more brands and cuisines using the ghost brand business model. “It is a fantastic opportunity for us and catering operators to join hands and promote business growth in 2021 and beyond,” he says.