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The rapid growth in volume and value of on-demand restaurant food delivery, accelerated by the COVID-19 pandemic, is causing a paradigm shift in the food service sector. However, there is a lack of hospitality management research into this emerging phenomenon. To address this gap, this paper defines and develops a novel conceptual model and typology and proposes a research agenda for ghost production in the context of food service.

This paper uses the Servuction model to explore, define and model the radical separation between food service production sites, points of sale and consumer interaction from the perspective of on-demand restaurant food delivery. A novel typology is developed and illustrated with eight industry examples from the UK and an accompanying cost benefit analysis. Future research priorities are identified.

In the hospitality literature, little attention has been paid to changes on-demand restaurant food delivery brings to production and business models of food service organisations, resulting in significant gaps between food service practice and theory. The knock-on effects to stakeholders include increased convenience for customers, uncertain employment status of riders and, for restaurants, striking a balance between capturing new markets and losing control of the customer. Additionally, for aggregators, there is a lack of profitability in existing models, despite holding the balance of power (and data).

The concept of “ghost production” and its associated typology is novel and offers a contribution to hospitality management literature by defining the term, scope and scale of this new phenomenon. Practical implications are proposed.

The emergence of dark kitchens in the restaurant industry is a contemporary phenomenon, arising most recently in the context of the so-called gig economy. This new business model flourished during the coronavirus disease 2019 (COVID-19) pandemic on a global scale. Despite dark kitchens' popularity, considerable negative publicity exists in the news related to poor working conditions. To highlight this new phenomenon, this paper explores the existing literature on worker exploitation in dark kitchens in the context of the gig economy.

A systematic literature review of hospitality and tourism databases generated 1,430 articles, of which 18 met the authors' inclusion criteria for the final analysis, and 1,030 anecdotal sources, of which 47 were included. Thematic analysis was used to identify the key themes and summarise the findings to be used for further studies.

The popularity of dark kitchens as a business model is premised on the fact that dark kitchens' dramatically reduces the operational cost and increases productivity. On the other hand, the working conditions and contractual agreements of the gig workers in dark kitchens raise several questions from operational, legal and ethical perspective. These poor working conditions create the conditions for worker exploitation and further damage the sector's image.

This study advocates that companies and managers are responsible for implementing and monitoring fair working conditions in dark kitchens. The existence of poor working conditions increases employee turnover and, overall, affects the industry's reputation.

This explorative study provides insights into the working conditions and contractual agreements in dark kitchens. Currently, there is no other study (empirical or conceptual) to shed light on the working practices. The authors hope this study will trigger further discussion and empirical research in this field.

The purpose of this study was to examine consumer’s perceptions of cloud kitchens, including the influence of perceived innovativeness (PI), utility motivations (price and food varieties), and food safety risk perceptions (FSRP) on trust; the impact of hedonic motivations and trust on attitude; and the moderating effect of FSRP on the relationship between utility motivations (food varieties) and trust. The relationships were examined with respect to gender and marital status.

The Theory of Consumption Value served as the theoretical underpinning of this study. Data was collected with an online survey (n = 316) using the Qualtrics panel. The partial least squares–structural equation modeling method was used to analyze the survey data.

PI, utilitarian motivations (price) and hedonic motivations (food varieties) positively influenced trust, whereas trust positively influenced attitude. FSRP negatively impacted trust and moderated the relationship between utility motivations (food varieties) and trust. Hedonic motivations positively influenced consumers’ attitudes. Multi-group analyses highlighted the differences attributed to gender and marital status.

PI and utility motivations influenced trust, supporting the notion that consumers are open to new and convenient ways to order food. Additionally, the negative influence of FSRP on trust and its moderating role on the path between food varieties and trust highlights the importance of FSRP on food consumption. Finally, this study provided insight into the influence of gender and marital status on perceptions of ordering from cloud kitchens.

The cloud kitchen business model is undergoing exponential growth, and this study provides an understanding of cloud kitchens from a consumer’s perspective.

Marketing; Business Expansion Strategy

Rahul Hazarika, the owner of One Stop Kitchen (OSK), was convinced that expansion of his cloud kitchen had to be aligned at various fronts to compete. He was juggling with thoughts of expanding from B2C to B2B model, whether to expand in the same city or other cities or to introduce new variants in existing B2C so as to use and leverage the existing customer base and network. The competition was growing ablaze, and most of the orders were procured from the third-party aggregators, leaving little chance for OSK to connect to its customer base directly. The growth potential in this upcoming sector was undeniable, and Hazarika was continually trying to bring in relevant business practices to maintain the momentum. The case deals growing cloud kitchen business problems and covers business concepts such as business expansion strategy, product profiling and marketing strategies.

Students will understand strategies for a Online startup Business in the Cloud Kitchen category. The concept of Product Profiling is also dealt with in the case.

Suitable for PG- and Executive-level courses.

Teaching notes are available for educators only.

CSS 8: Marketing.

The pervasive impact of the COVID-19 virus on the food services sector in India has created conditions for fundamentally altering the structure of the industry. This paper offers a nuanced evaluation of the transfiguration of the market, explaining descriptive views supported by numerous secondary data sources.

This is a self-driven study grounded in secondary data. Qualitative and quantitative assessments are assimilated from credible market research reports of multiple agencies in the Indian context, as well as news developments during the pandemic period.

Digitally pivoted platforms such as cloud kitchens and delivery aggregators will eclipse all other formats due to the potential long-term prevalence of the COVID-19 virus. These formats would rise to a dominant position in the Indian food services sector in the coming decade.

This study is entirely driven by secondary data due to the inherent difficulties of collecting sizeable and good quality primary data as a result of the lengthy and stringent lockdowns imposed across India. Future studies should consider collecting consumer responses to get a better picture of changing dining habits in the post-pandemic scenario.

The dynamic and evolving food services in India, catalyzed by the Internet and digital technologies will help academicians study the long-term implications of this change, and how it would impact society at large. The paper provides a rich body of contemporary data and analysis in the food services sphere.

The COVID-19 pandemic and its long-term persistence would dramatically alter food service consumption across India. This will not only change how the industry is structured, but will reshape how food is consumed into the future.

The study is a holistic examination of the relationship between the coronavirus pandemic and the food services industry in India. The macro perspectives aided by news coverage and industry research would help generate potential research questions on its own merits.

Operations management involves utilizing given resources as efficiently as possible to deliver services to customers and meet business goals. Developing efficient business operations requires a hospitality organization to design efficient service environments, as part of its mission. This chapter articulates the key design and planning strategies for the development of a successful hospitality organization. The first section covers the process of location selection, as the most important factor leading to the success of a hospitality organization. The second section discusses strategies for estimating the number of users (service employees and customers) during peak and idle times to justify a costly financial investment. The third section concerns the readers with the topic of layout planning, with the goal of service optimization for a targeted number of customers. The fourth section deliberates workflow conditions, and finally, the last section addresses the ambience and design of the physical hospitality environment, which is crucial for customer evaluation of a hospitality organization as it creates a first impression.

Unlike manufacturing firms where the production of goods can be adjusted according to the demand of customers, hospitality firms do not have the ability to alter the capacity of the changing demand of guests in a short period of time. Given the relatively fixed capacity or supply, maximizing revenue through inventory control is essential for hospitality operations. This chapter covers operations inventory control extracted from the field of revenue management. First, the concept of capacity management and planning is enclosed and various capacity management tactics and inventory control strategies are explored. Next, the management and principles of space inventory through inventory-based restrictions, strategic pricing, displacement analysis, and distribution channel management are addressed. Finally, the respective applications of these principles, strategies, and tactics in several hospitality sectors are discussed.

This paper aims to investigate the phenomenon of online food purchasing in Italy and, specifically, Italian consumers' future intentions to use these services even after the end of the COVID-19 emergency. To this purpose, to understand if these phenomena are robust enough to represent irreversible and well-established trends, in the present study, consumers’ Behavioural Intention was investigated.

A theoretical framework based on a preliminary literature analysis on the use of delivery services was developed. Then, an online survey was carried out in Italy during 2021. The data were then elaborated through an exploratory factor analysis (EFA), followed by confirmatory factor analysis (CFA). Following the verification of constructs reliability, a structural equation modelling (SEM) using the statistical tools, SPSS and R (Lavaan) was performed.

The results suggest that Behavioural Intention is influenced by items such as convenience, variety of food and time savings. Moreover, the relevant role of social networks and interpersonal relationships in influencing consumers' purchasing intentions has highlighted the importance of focussing on advertising campaigns and good “word of mouth.”

The present research represents the first attempt to investigate the food delivery and ghost kitchens’ phenomena, recently accepted thanks to the delivery applications use in Italy, a Country with strong gastronomic tradition and with an important digital gap. In this scenario, the research focused on the attention on the consumers' future intentions to use these services even after the end of the COVID-19 emergency.

The case study should enable the student:1. to assess the complexities of the Indian quick service restaurants (QSRs) market and its competitive dynamics;2. to infer the factors which have contributed to the growth of Domino’s Pizza in India;3. to apply different tools and techniques to assess and refine strategy;4. to evaluate Domino’s Pizza India in the context of the value chain analysis; and5. to examine the strategic options available to Domino’s India for achieving its future growth in India.

The case details the growth story of American pizza chain Domino’s in India. Jubilant Food Works Limited (JFL), a part of the Jubilant Bhartia Group, operates the Domino’s Pizza chain in India. The first restaurant was opened in India in 1996 and, in the initial years, the focus was on promoting and popularising “pizza” as an interesting meal replacement option. Over the years, through memorable advertising, operational efficiency and product innovation, Domino’s emerged as the market leader in the organised pizza market in India. The growth in competition both from domestic and international brands and the challenge posed by the growth of food aggregators posed challenges to its prospect of maintaining market leadership. The nationwide lockdown because of the pandemic severely impacted the foodservice industry. Significant changes were seen in the operations of the QSR and rapid growth was witnessed in online food ordering especially through food delivery apps. The management at JFL believed that the demand for QSR would increase rapidly in the country given the possibility of closure of 30%–35% of conventional restaurants. This company had raised the store addition target for FY22 to 150–175 from earlier 135 as it believed that there would be a greater demand for trusted brands. The management believed that the domestic market had the capacity to absorb 3,000 Domino’s outlets compared with the earlier estimate of 1,800–2,000 outlets. In the first quarter of FY22, it added 20 new Domino’s stores. Was the management correct in anchoring its future success on new physical retail outlets? Was there a need to revisit the strategy?

The case has been written with the objective of enabling the students to understand the dynamics of a rapidly changing emerging market. It is structured for use at a Master’s level course and an MBA audience in the subject of Business Strategy/Retail Strategy.

Teaching notes are available for educators only.

CSS 11: Strategy.

This paper aims to examine the consequences of Covid-19 for the migrants and the tourism industry following the emergence of the new business models and operational practices in the following three areas: i) Covid-19 and post-Covid-19 labour shortages, ii) the development of migrant gig jobs and iii) future trends.

Covid-19 posed challenges for labour retention and has given rise to new outsourced and precarious forms of employment. The growth of various tourism-related apps and establishments, such as “ghost kitchens” or pop-up restaurants, has transformed the landscape of tourism work and opportunities. This short paper provides an overview of the labour consequences of Covid-19, focusing on migrant tourism workers.

Despite growing attention towards promoting sustainable, just and decent employment, global trends and changing industrial relations in the sector have led to heightened levels of precariousness and uncertainty in migrants’ work.

This paper contributes to the literature on tourism employment by examining the forms of new business models and operational practices that affect migrant labour.