If you’re exploring the idea of a delivery-only restaurant, it’s probably because something in your current setup feels limiting. Maybe rent keeps climbing while foot traffic stays unpredictable. Maybe staffing a full dining room no longer makes sense. Or maybe you have great menu ideas but not the budget to open another physical location.
You’re not alone. Many restaurateurs are rethinking their operations as delivery demand keeps rising. UBS predicts global delivery sales will grow more than 20% annually, jumping from $35 billion to $365 billion by 2030.
Curious whether a delivery-first model could be a smarter, more flexible way forward? This guide walks you through the steps, tools, and decisions that lead to a successful delivery-only launch.
Key Takeaways
Delivery-only restaurants cut major overheads, letting you launch with lower investment, faster setup, and higher operational efficiency.
Success depends on a strong foundation, such asmarket research, location strategy, menu engineering, packaging, and streamlined kitchen workflows.
Technology is the backbone, enabling order management, kitchen coordination, customer tracking, marketing, and performance insights.
Challenges like high aggregator fees and weak brand visibility must be tackled with direct ordering, smart marketing, and exceptional food quality.
iOrders is built for delivery-first brands, offering seamless order management, automation, and tools to scale profitably.
What is a Delivery-Only Restaurant?
A delivery-only restaurant, often called a cloud kitchen, virtual kitchen, or ghost kitchen, is a food business designed to serve customers exclusively through online ordering and delivery channels. Instead of offering dine-in service, these restaurants operate out of dedicated production kitchens where every process, tool, and workflow is optimized for preparing meals quickly and efficiently for delivery.
Unlike traditional restaurants, a delivery-only model has no dining room, no front-of-house operations, and no reliance on foot traffic. All customer interactions happen digitally, through delivery apps or direct online ordering systems, making it a fully off-premise, fulfillment-driven restaurant concept.
Benefits of a Delivery-Only Restaurant
Delivery-only restaurants have become a strong alternative to traditional dine-in models, especially for entrepreneurs looking to launch quickly with fewer upfront risks. It removes the need for a physical storefront, unlocking several advantages such as:
Lower Startup and Operating Costs: No dining room, servers, or prime retail space means reduced rent, utilities, and labor expenses.
Lean, Efficient Workflow: With a simplified back-of-house setup, you can run operations with smaller teams and clearer workflows.
Menu Flexibility & Faster Experimentation: It’s easier to test new items, run limited-time menus, or pivot your cuisine without reprinting menus or retraining full staff.
Scalable Business Model: When demand grows, you can add more virtual brands or expand to new delivery zones without relocating or renovating.
Reduced Risk Exposure: Since the model relies on delivery demand rather than foot traffic or table turnover, you're less affected by location fluctuations or seasonal shifts.
With these benefits in mind, it’s clear why the delivery-only model has become a powerful opportunity for food entrepreneurs. But to truly succeed, you need the right strategy, systems, and execution.
10 Steps to Start and Scale a Successful Delivery-Only Restaurant
Launching a delivery-only restaurant requires a different approach than a dine-in setup. Instead of focusing on décor or foot traffic, success hinges on demand, order volume, kitchen efficiency, and strong delivery systems. The steps below guide you from validating your market to building your menu and growing sustainably.
1. Conduct Market Research and Validate Demand
Before investing in equipment or signing a kitchen lease, confirm that there’s real demand for your cuisine and pricing. Research for customer behavior and market trends to ensure you launch a concept that people will actually order.
Identify your target customer: Are you serving busy office workers, families, students, or niche segments like health-conscious or vegan customers?
Analyze local delivery trends: Check which cuisines are most popular on apps like Uber Eats, DoorDash, and SkipTheDishes. In Canada, categories like fried chicken, Asian fast casual, poke bowls, and healthy bowls consistently perform well.
Track customer behaviour: Look for peak ordering times, top competitors, and common complaints (e.g., missing items, packaging issues).
Validate demand: Test your menu or brand in a small area or shared kitchen before committing to a full launch.
2. Build a Solid Business Plan and Budget
A well-structured plan helps you anticipate costs, revenue, and operational needs. Budgeting early prevents surprises and sets realistic expectations for growth.
Estimate startup and operating costs: Include kitchen rent, licensing, staffing, equipment, ingredients, packaging, and delivery platform fees.
Plan branding and packaging: Your packaging becomes your first physical interaction with customers; invest in quality that represents your brand.
Outline essential equipment and staffing: Consider prep tables, fryers, refrigeration, and 2–4 core staff, depending on volume and menu complexity.
3. Choose Your Operating Model
The type of kitchen you operate affects costs, control, and scalability. Choose the model that aligns with your budget, delivery goals, and growth strategy.
Kitchen Model Comparison
Model Type
Pros
Cons
Shared / Ghost Kitchen
Low upfront investment
Access to commercial-grade equipment
Shorter launch timeline
Flexible space that can support multiple virtual brands
Limited customization of the kitchen layout
Shared utilities and resources
Lower brand visibility since customers never visit your physical location
Independent Kitchen
Full control over layout and operations
Stronger brand presence and marketing opportunities
Greater long-term capacity and flexibility
Higher upfront costs
Longer launch timeline due to permits and setup
Responsible for all operating expenses and maintenance
4. Select the Right Location
Even without dine-in traffic, location affects delivery speed and customer satisfaction. A well-placed kitchen and optimized workflow ensure timely orders and smooth operations.
Choose high-density delivery areas: Offices, apartments, universities, or mixed-use neighbourhoods maximize order volume.
Optimize kitchen layout: Set up clear stations so you can prep → cook → pack → dispatch easily to reduce bottlenecks.
Ensure driver access: Provide clear pickup instructions, parking, and safe loading areas to avoid delivery delays.
5. Create a Delivery-Friendly Menu
Your menu must travel well and be operationally manageable. Food that holds up in transit increases customer satisfaction and reduces complaints.
Focus on dishes that travel well: Bowls, tacos, wraps, poke, biryani, fried chicken, pasta, or burgers. Avoid items that get soggy or require complex plating.
Keep the menu small and efficient: Fewer items result in faster prep, fewer mistakes, and higher margins.
Use durable packaging: Vent containers for fried items, insulated bowls for hot dishes, and spill-proof lids for gravies.
6. Secure Permits, Licenses, and Compliance
Delivery-only restaurants still fall under the same legal and safety regulations as dine-in establishments. Compliance protects your business and avoids fines.
Business License: Required by your city or municipality to operate legally.
Food Premises, Food Service Permit: Issued by local health authorities (Public Health Units in Canada, Health Departments in the U.S.).
Food Handler, Food Safety Certification: At least one certified handler or manager must be on-site.
Fire & Safety Approval: Needed when operating commercial cooking equipment.
Shared Kitchen Agreement: If using a ghost/shared kitchen, proof of facility licensing is required.
Zoning Approval (city-specific): Ensures the location is approved for commercial food production.
Liability & Commercial Insurance: Protects your business and is often mandatory for rentals or partnerships.
7. Set Up Ordering and Delivery Infrastructure
A delivery-only restaurant runs entirely on digital orders, so your ordering and dispatch systems must be seamless from the start.
Integrate with major delivery apps to expand reach and capture high-intent traffic.
Use a unified POS or order management system to pull all orders into one dashboard instead of juggling multiple tablets.
Automate your order flow so tickets instantly reach the kitchen and dispatch stays accurate during peak hours.
A platform like iOrders can help centralize these channels, automate ticket routing, and give you one clean system to manage the entire delivery workflow.
8. Build Strong Kitchen and Delivery Workflows
In a delivery-only setup, tight coordination between prep, packing, and dispatch is what keeps orders fast, accurate, and consistent.
Schedule staff based on peak hours: For example, have extra cooks and packers during lunch and dinner rushes to prevent bottlenecks.
Define roles for prep, cook, pack, and dispatch: Assign specific responsibilities so everyone knows their tasks and orders move efficiently.
Batch preparation for high-volume items: Items like fries, sauces, or popular bowls can be prepped in batches to save time during peak periods.
Quality control before packing: Check temperature, portion sizes, and presentation before sealing each order to reduce complaints and refunds.
Monitor metrics in real time: Track prep times, order accuracy, and delivery delays to quickly identify issues and adjust staffing or workflows.
9. Consider Running Multiple Virtual Brands
Once your workflows are stable, virtual brands allow you to generate additional revenue without expanding your kitchen.
Add complementary cuisines: For example, a burger-focused kitchen can introduce a wings, poutine, or loaded-fries brand using the same fryers and prep stations.
Test new concepts with low risk: Launch small menus (5–8 items) to validate demand before committing to full-scale branding.
Reach new customer segments: Create brands for breakfast, late-night cravings, plant-based options, or healthier bowls, all without altering your primary operation.
10. Plan Customer Engagement and Retention
Your digital presence is the face of your delivery-only brand. Engaging customers drives repeat orders and builds loyalty.
Encourage reorders with QR codes linking to your direct ordering channels
The steps to launch a delivery-only restaurant are clear, but running it day-to-day without a mess is another story. What if there was a way to manage all your orders, deliveries, and customer info in one place? iOrders does exactly that.
How iOrders Supports Your Delivery-Only Restaurant
You’ve seen the steps to set up a delivery-only restaurant, but putting them into practice isn’t always easy. Orders come from different platforms, drivers need to be coordinated, and keeping an eye on every ticket and prep time can get hectic fast.
That’s where iOrders can help you out! It centralizes all your orders, delivery logistics, and kitchen operations in one place, giving you a clear view of everything that’s happening. With the right system in place, you can focus on making great food and growing your restaurant, without the stress of juggling every detail manually.
Key Features include:
Commission-Free Online Ordering: Keep 100% of your revenue by accepting orders directly through your website or app without paying third-party commissions.
Website and QR Code Ordering: Provide a seamless, branded ordering experience for customers, whether they scan a QR code or order from your site.
Delivery-as-a-Service Integration: Offer fast, reliable delivery using your own drivers or third-party logistics (like DoorDash Drive or Uber Direct) with a flat fee and full control over branding.
Managed Marketing Services: Send targeted messages, promotions, and offers to your customers to increase repeat orders and drive engagement.
Loyalty and Rewards Programs: Build customer retention with points, referral rewards, and personalized incentives tailored to your audience.
Smart Campaigns: Use data-driven insights to proactively engage customers, boost order frequency, and increase lifetime value.
AI-Powered Review System: Automatically respond to FAQs, comments, and reviews in a way that aligns with your brand, saving time while maintaining consistent communication.
White-Label Mobile App: Offer a professional, branded app for dine-in, pickup, or delivery orders with seamless payment options.
Managing multiple orders, coordinating drivers, and keeping track of every ticket can get overwhelming fast. iOrders brings everything into one place, so you always know what’s happening in your kitchen and on the road.
Book a demonow and see how much easier running your delivery-only restaurant can be.
Final Thoughts
A delivery-only restaurant works best when every process is designed around your customer and your kitchen, not around a third-party app. Success comes from knowing which cuisines travel well, which neighborhoods generate demand, how to track orders in real time, and how to turn first-time buyers into repeat customers.
iOrders helps make this manageable and simple. It centralizes orders, coordinates deliveries, and organizes customer data so you don’t lose control of your brand or insights. With the right system, you can focus on testing new ideas, growing multiple virtual brands, and scaling profitably.
Connect with our team today to know how iOrders can simplify running your delivery-only restaurant.
FAQ
1. How long does it take to launch a delivery-only restaurant?
Depending on your kitchen model, menu complexity, and permits, most delivery-only restaurants can launch in 4–8 weeks using a shared or ghost kitchen. Independent kitchens may take longer due to setup and licensing requirements.
2. Can I run a delivery-only restaurant part-time?
Yes. Many operators start by using existing kitchen hours during off-peak times, testing demand, and gradually scaling to full-time as orders grow.
3. How can I reduce delivery costs without hiring more staff?
By integrating with third-party delivery services (like DoorDash Drive or Uber Direct) and using a platform like iOrders, you can outsource delivery on demand while keeping branding consistent and paying only flat fees per delivery.
4. What types of cuisines work best for delivery-only models?
Dishes that travel well and maintain quality are ideal. For example, bowls, wraps, fried chicken, tacos, pasta, and curries. Avoid foods that get soggy, lose heat quickly, or require delicate plating.
5. How can I build repeat customers without a physical location?
Digital engagement is key: loyalty programs, email/SMS marketing, targeted promotions, and branded packaging all encourage repeat orders. Platforms like iOrders make it easy to automate campaigns and retain customer data for ongoing marketing.
