While the phrase “ghost kitchen” may conjure up images of haunted houses, the reality is a bit more mundane. 

Ghost kitchens are food prep operations with no waiters, no dining room and no parking lot – really, no public presence whatsoever.

But on food delivery apps, they’re alive and well.

In short, ghost kitchens are physical spaces for operators to create food for off-premises consumption. And on apps like Grubhub and DoorDash, listings for restaurants operating out of ghost kitchens usually don’t look any different than those for brick-and-mortar operations. For example, where I live in northern Colorado, there’s a restaurant called Rocco’s Ravioli that appears on the apps. But Rocco’s doesn’t have a storefront. It’s a food delivery service that makes food in a ghost kitchen.

One trend I’m seeing is the formation of central, commissary-style ghost kitchens with multiple restaurants or brands working out of the same physical space. These are often located in industrial parks on the outskirts of cities, since there’s no need to pay downtown rents when there’s no front-of-house operation.

Why ghost kitchens matter

While it’s hard to pinpoint exactly when the first ghost kitchen opened, it was the COVID-19 pandemic that accelerated their growth

By March 2020, most U.S. jurisdictions had forced restaurants to close their dining rooms to limit the spread of the coronavirus. While some restaurants closed never to reopen, others pivoted to a delivery or carry-out model with varying levels of success. 

Some small food operators used ghost kitchens to get a foothold in the market during a time when opening a standard restaurant with a dining room would have been unthinkable. As long as the high fees charged by the major delivery services could be mitigated or built into the price, food delivery outfits working out ghost kitchens could find a way to make a living. Even national chains like Chili’s and Applebee’s used ghost kitchens to keep cash flowing and test new menu items using different brand names in case the ideas flopped. 

With customers adapting to the trend quickly and easily, it’s likely that ghost kitchens are here to stay.

Contributor

Recently Published

Key Takeaway: Artificial intelligence (AI) is revolutionizing investment by making professional financial insight and portfolio management accessible to everyone. AI-powered robo-advisers, such as Betterment and Vanguard, are democratizing investment and providing tailored advice to a new generation of investors. With 31% of gen Zs and 20% of millennials using robo-advisers, the financial industry is adapting […]
Key Takeaway: Nasa’s Artemis program is set to return astronauts to the Moon and establish a permanent orbiting laboratory by the end of the decade. As humanity’s footprint expands, a new field emerges: astroforensics. Space presents a unique and harsh environment for forensic investigations, with altered gravity, cosmic radiation, extreme temperatures, and oxygen-providing climate systems. […]

Top Picks

Key Takeaways: Stock market enthusiasts often claim to predict financial market trends with great accuracy, but this is not possible due to the uncertainty and unpredictable nature of the environments in which we make daily decisions. Human cognition tends to favor a reductionist approach to information processing, sometimes called “tunneling,” which can lead to biased […]

Trending

I highly recommend reading the McKinsey Global Institute’s new report, “Reskilling China: Transforming The World’s Largest Workforce Into Lifelong Learners”, which focuses on the country’s biggest employment challenge, re-training its workforce and the adoption of practices such as lifelong learning to address the growing digital transformation of its productive fabric. How to transform the country […]

Join our Newsletter

Get our monthly recap with the latest news, articles and resources.

Login

Welcome to Empirics

We are glad you have decided to join our mission of gathering the collective knowledge of Asia!
Join Empirics