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Everything You Need to Know About Ghost Kitchens

Everything You Need to Know About Ghost Kitchens

With the restaurant industry drastically impacted by the COVID-19 Pandemic, new trends have emerged. Ghost kitchens are just one of the many that have become prominent over the last two years. But what exactly is a ghost kitchen, and what does that entail? Restaurant City brings you everything you need to know about ghost kitchens.

Ghost Kitchen


What is a Ghost Kitchen?

Ghost kitchens are food prep operations that have no public presence - meaning no dining room, no waiters and no parking lot. Instead, they are physical spaces that make food for off-premises consumption, i.e. takeout. That’s why ghost kitchens are so popular on food delivery apps. You can either rent a space yourself or share it with multiple other brands, all working to send out food to customers.

Why Did Ghost Kitchens Become Popular?

When COVID-19 closed millions of businesses, customers turned to delivery apps for food. While brick and mortar restaurants lost revenue, ghost kitchens rose in popularity due to the added convenience and eCommerce benefits. They used their digital suave to capitalize on delivery and experience exponential growth as a result.

The Benefits of Ghost Kitchens

With no wait staff, rent and other expenses, ghost kitchens save more money when compared to traditional restaurants. It’s simply quicker and cheaper to launch a ghost kitchen than it is a brick-and-mortar establishment. You also cut down on the amount of equipment needed and have to worry about less legal paperwork. Ghost kitchens are great for people looking to test their products or existing businesses that want to increase their delivery range.

The Ghost Kitchen Business Model

Whether you’re an entrepreneur just starting out in the food industry or an established restaurateur looking to capitalize on food delivery, the ghost kitchen business model is largely the same. To start a ghost kitchen, you rent a facility/kitchen space. These are usually located in densely populated cities or areas. Once done, your next goal is to get your business onto food delivery apps. From there you start sending out orders.

Who Uses Ghost Kitchens?

Ghost kitchens are a viable business model for many people. Established brands and new concepts alike use them in response to increasing demand in the market. If you own a franchise, they can help introduce brand awareness into a new market. For areas with high real estate costs, the traditional restaurant space might not be an option and restaurateurs turn to ghost kitchens instead. There are plenty of reasons for opening a ghost kitchen.

The Future of Ghost Kitchens

As more restaurants open up, some people believe that ghost kitchens will decrease in popularity over time. However, as customers adapt to this trend quickly, it’s more likely that ghost kitchens are here to stay. Many will continue to have food delivered rather than going out to eat, so ghost kitchens have a steady income of revenue. Don’t be surprised if you see ghost kitchens rise in popularity even more as time goes on!

If you’re looking to start a ghost kitchen or open a facility for ghost kitchens, Restaurant City can help! Visit one of our four showrooms and talk to our experienced team members. We’ll go over your equipment needs and help you figure out what works best for you. 

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