ENWhat Is A Dark Kitchen (Ghost Kitchen)? (2025)
With restaurant deliveries soaring, an entirely new delivery and takeout business model emerged. Enter dark kitchens —highly efficient production units without a storefront optimized for delivery.
Since the late 2000s, food delivery has transformed and boosted the restaurant industry. In this growth, third-party delivery apps play a pivotal role. By 2026, Restaurant-to-home delivery will be a $500B market with an annual growth rate of 8.29%.
According to the U.S. Restaurant Association, 54% of adults believe takeout or delivery food is essential to their lifestyle. This shift in consumer behavior has led to the emergence of the business model known as dark kitchens, units without a storefront optimized for delivery.
Dark kitchens, also known as ghost kitchens or cloud kitchens, have many advantages for different business owners and types of restaurants. But what exactly is a dark kitchen?
What are Dark Kitchens?
Dark kitchens are restaurants that sell meals exclusively through delivery. Other names for them include cloud kitchens, ghost kitchens, or delivery-only restaurants.
Ghost kitchens do not have seating capacity for in-house diners or walk-ins, as they focus only on delivery. They prepare food once an order arrives through a delivery app or an online ordering system, such as Deliverect Direct.
Once the meal is ready, delivery drivers then collect it for delivery. Some dark kitchens also offer takeout, letting customers pick up their food.
Cloud Kitchens and COVID-19
By early 2020, ghost kitchens were already rising in the food delivery industry. Their growth surged dramatically due to indoor dining restrictions and bans during the pandemic.
Conditions such as the lockdown forced restaurants to embrace more technology and digital platforms while simultaneously driving diners' increased use of food delivery services.
A 2021 study by Deloitte found that 79% of respondents were open to ordering from dark kitchens. This report marked a 20% increase from the previous year and a 32% jump from two years prior.
Despite restaurant reopenings, the 2021 Deloitte research found that digital food delivery was becoming more popular. The report found that 53% of individuals preferred digital meal ordering in 2020 and 64% in 2021.
While growth rates may not have been as high as during the epidemic, this trend has continued year after year. In addition, post-pandemic, dark kitchens have attracted significant venture capital (VC) investments. Some companies have raised $100 million in funding.
Today, dark kitchens are more relevant than ever. We expect to see more growth in this already exploding food business segment.
The dark kitchen market is forecast to reach $500 billion worldwide by 2026, four times larger than in 2018.
Benefits for Restaurants
Dark kitchens are an excellent choice for those looking to establish or grow their restaurant because this model involves fewer risks and early costs.
Regarding expenses, some construction industry companies highlight that the space required to establish this type of business is up to 60% less than that of a conventional restaurant.
Dark kitchens have pros and cons, but let's dive into the key benefits you need to know if you're considering opening one.
Cost Efficiency:
There is no need for customer seating or waiting areas.
Eliminates serving staff costs.
Lowers overall rent costs, reducing overhead.
Greater scalability without the constraints of physical dining areas.
Flexibility and Innovation:
Enables experimentation with new brands, menus, and concepts.
Easily adapts to changing consumer food trends.
Allows for quick transitions to different menus or concepts.
Multiple Virtual Brands:
One kitchen can serve multiple virtual brands.
Increases capacity to serve the growing food delivery market and expands into new geographic areas.
Target various market segments simultaneously.
Opportunity for cross-promotions and shared resources among virtual brands.
Where did the Dark Kitchen concept come from?
Dark kitchens or ghost kitchens existed before the epidemic. However, the date they first appeared is still being determined, but one thing is certain: due to restaurant regulations, digital food orders increased during COVID-19.
While the term "ghost kitchen" was already in use online, there was a significant increase in online searches, as reflected on platforms like Google Trends, in early 2020. Moreover, some businesses began exploring this business model as early as 2017, and even some celebrities launched restaurants with this approach in 2019.
The success of online ordering players like Uber Eats, Just Eat, DoorDash, Deliveroo, and many more paved the way for dark kitchens. These third-party delivery channels enable food businesses to connect easily with customers and quickly deliver meals to their doorstep.
Ghost Kitchens' essential success tips
There are several ways to approach opening a ghost kitchen. First, you must choose a business model.
Whether you manage a virtual kitchen or add a virtual offering to your kitchen, having a business plan and a clear idea is vital. These tips will assist you in strategizing for your dark kitchen.
1. Location Matters
Importance: If operating online only, a ghost kitchen needs a strategic location to maintain order flow.
Delivery Zone: Your customers should ideally be within a three-mile radius for efficient deliveries.
Research: Before settling on a place:
Analyze the competition in the area.
Consider demographics.
2. Get the right tech
Importance: Ghost kitchens run efficiently on technology. Furthermore, you can collect data to enhance decision-making.
For example, instead of having multiple tablets bleep at your staff as they re-punch orders into your POS, you can invest in one system to consolidate all orders and consistently deliver them to the kitchen.
Decision-making: Choose the platform that best fits your business model.
Own Delivery Service:
Pros: Complete control and branding.
Cons: Higher marketing costs, building your ordering and fulfillment systems.
Third-party Delivery Service:
Pros: Convenience, wider reach.
Cons: Can eat into profit margins.
Platform for Streamlining Order Processes:
If working with multiple delivery partners, use a service that aggregates orders. This way:
Eliminate the need for various devices.
Reduce manual order input into the POS.
Save on staff costs and minimize their stress.
Speed up delivery times, leading to satisfied customers and repeat business.
Instead of having multiple tablets bleeping at your staff as they re-punch orders into your POS, you can invest in one system to consolidate all orders and deliver them consistently to the kitchen.
3. Invest in marketing
Importance: With no foot traffic or physical signage, your digital presence is your only storefront.
Must-haves:
Clear branding and messaging.
Active social media.
Presence on delivery platforms.
Send e-mail marketing campaigns.
Don't be afraid of Ghost Kitchens
Ghost kitchens are increasingly relevant to evolving technology and consumer habits, representing a fusion of innovation and gastronomy. It's an opportune moment for those in the restaurant business to explore this approach.
Embracing this trend and learning from peers can strengthen your restaurant's position in the digital age. Success awaits those willing to adapt and grow, so feel free to jump in. Otherwise, the missed opportunity might haunt you.