Ghost Kitchens saw a significant increase in growth due to the pandemic and are with no doubt here to stay. With the high demand in restaurant delivery services this is expected to turn into a whopping $4.2 billion industry by 2024.
So what are ghost kitchens? Ghost kitchens are food prep operations that don’t require waiters, a dining room or a parking lot. They need zero public presence and no traffic generating co-tenants to help sustain their business. You may see the restaurant name on their apps but you’ll never know if you’re ordering from the actual restaurant or if it’s in fact a Ghost Kitchen. I believe it’s a smart idea for startups looking to test the waters in the restaurant business to see what items are hot sellers and which ones flop without the long term lease commitments and additional overhead costs. A number of national chains such as Chili's and Applebee's are using ghost kitchens to test new menus items guised as different brand names. This industry provides great flexibility and economies of scale to the restaurant delivery industry.
