Mechanisms to enable operational efficiencies in a virtual context

Abstract: Title: Mechanisms to enable operational efficiencies in a virtual context Seminar date: 1st of June 2023 Course: FEKH99, Bachelor Degree Project in Entrepreneurship and Innovation, 15 University Credit Points Authors: Morgan Bryer, Nathan Nilsson, Anton Palmen ´ Supervisor: Ziad El-Awad, Lund University Keywords: Virtual kitchens, Operational Mechanisms, Operational Efficiency, Business Model Canvas, Virtuality Research question: Research how the internal mechanisms of virtual restaurants enable high operational efficiency Purpose: On paper, virtual kitchens are more effective and profitable business ventures than traditional restaurants. The purpose of this thesis is to evaluate the internal mechanisms that enable operational efficiencies in virtual restaurants. Background: Since the corona pandemic hit our world, the restaurant industry has had a paradigm shift towards off-premises eating. Restaurants have had to adapt to the digitalized behavior of today’s society. This includes shifting focus towards delivery and pick-up of food. This shift in the industry created a new opportunity for so-called virtual kitchens. Virtual restaurants are, contrary to traditional restaurants, only focused on off-premises services. They thus have no storefront and can focus their efforts in the kitchen elsewhere. Methodology: To be able to reach the purpose of this study, a qualitative, abductive study is performed. The process includes performing a single case study on Bite Kitchens, to be able to gather empirics. Collected data will be analyzed with the theoretical framework business model canvas, which further will be altered to be specialized and a better fit for Bite Kitchens, as well as other virtual businesses. Theoretical Perspective: The work is based on previous research on virtual kitchens and uses the business model canvas framework to analyze the results obtained from the empirical data. Results and Conclusion: The thesis identifies three mechanisms that enable operational efficiencies for virtual kitchens, these being: “Reduce dependencies”, “Exploit synergies”, and “Reconstructing work processes” which in turn are dependant on multiple methods that the business applies. It is concluded that the use of these mechanisms allows for a higher output of meals produced and delivered per square meter of restaurant and per total invested monetary unit. Furthermore, a new model named “The Virtual Model Canvas” which better explains the mechanisms for virtual businesses is created.