1851

<a href="https://1851franchise.com/uber-buys-postmates-for-265-billion-2713437#franbuzz">While third-party delivery has been in the spotlight </a>for some time now, <a href="https://www.qsrmagazine.com/technology/are-ghost-kitchens-future?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">ghost kitchens</a> may be positioned to be the next big leap in the restaurant industry. Ghost kitchens, also known as cloud kitchens or dark kitchens, are physical locations designed to serve delivery-only concepts or serve as mobile order-only restaurants, with no storefronts or dining areas. The move was already having a major impact on restaurant franchises, in particular QSRs and fast-casual concepts, who had already experienced steadily decreasing foot traffic in recent years.&nbsp;Now, as brands from <a href="https://1851franchise.com/chuck-e-cheese-offers-at-home-party-packages-to-keep-kids-entertained-during-coronavirus-2712554#most-recent">Chuck-E-Cheese</a> to <a href="https://www.prnewswire.com/news-releases/chipotle-announces-virtual-farmers-market-powered-by-shopify-301085587.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">Chipotle</a> pivot towards the virtual amid COVID-19, ghost kitchens are quickly becoming the way of the future. According to <a href="https://www.restaurantdive.com/news/ghost-kitchens-global-market-euromonitor/581374/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">a Euromonitor virtual webinar</a> presented by Euromonitor's Global Food and Beverage Lead Michael Schaefer, ghost kitchens could create a $1 trillion global opportunity by 2030.Even before COVID-19, global foodservice delivery sales had more than doubled from 2014 to 2019, and 52% of global consumers are comfortable ordering from a delivery-only restaurant with no physical storefront, according to Euromonitor.Now, one of the main drivers of the growth of the ghost kitchen market is the changing cost structures of the foodservice environment, Schaefer noted during the webinar. In general, the reduction of employees that come with a delivery-focused model can significantly bring down rent and staffing costs for restaurants and grow thin margins. Entrepreneurs are finding that all you really need is a kitchen, an online menu and a way to deliver food (usually through a delivery app).According to the webinar, Euromonitor predicts cheaper, faster and more reliable delivery — AKA ghost kitchens — could help the QSR segment “capture 50% of drive-thru service ($75 billion), 50% of takeaway foodservice ($250 billion), 35% of ready meals ($40 billion), 30% of packaged cooking ingredients ($100 billion), 25% of dine-in foodservice ($450 billion), and 15% of packaged snacks ($125 billion).”&nbsp;As delivery becomes less expensive and ghost kitchens grow and become more centralized, reducing food delivery times in the process, restaurants could find financial gains in optimizing their business for off-premise rather than dine-in experience. Plus, ghost kitchens can provide fulfillment help with the added volume delivery creates, especially as <a href="https://1851franchise.com/how-safe-is-ordering-delivery-during-the-coronavirus-2712543#most-recent">diners become more comfortable with food delivery</a>.This is why major restaurant franchisors are dipping their toes into the ghost space. <a href="https://www.latimes.com/business/story/2020-01-30/that-canters-pastrami-takeout-you-ordered-might-be-coming-from-a-ghost-kitchen?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">Bloomin' Brands is piloting kitchen-only formats</a> for takeout and delivery orders. <a href="https://www.restaurantbusinessonline.com/financing/chick-fil-opening-new-delivery-focused-prototype?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">Chick-fil-A is experimenting with kitchen-only locations</a> in Nashville, Tennessee and Louisville, Kentucky, that prepare individual and catering orders for delivery through DoorDash. McDonald's <a href="https://www.restaurantdive.com/news/mcdonalds-opens-1st-ghost-restaurant-in-london/566504/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">opened a ghost restaurant in London</a> last year with Uber Eats as a delivery partner.Although franchisors are slowly catching on, third-party delivery platforms have been the true leaders of this movement, with <a href="https://1851franchise.com/ubereats-is-taking-the-lead-in-the-booming-virtual-restaurant-trend-2710836#most-recent">Uber Eats operating over 1,500 virtual restaurants</a> and <a href="https://1851franchise.com/doordash-goes-rogue-and-opens-shared-ghost-kitchen-2711310#most-recent">DoorDash</a> launching a shared ghost kitchen in Silicon Valley last year. Former Uber CEO Travis Kalanick even got into the ghost kitchen business with a startup called <a href="https://www.cloudkitchens.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">CloudKitchens</a> a few years ago, buying inexpensive property in the U.S., India, China and the U.K. and letting chefs and would-be restaurateurs lease space and start delivering food.The <a href="https://www.businessinsider.com/85-of-independent-restaurants-could-permanently-close-in-2020-report-2020-6?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead-2713569" target="_blank" rel="nofollow">Independent Restaurant Coalition</a> has predicted that as many as 85% of independent restaurants could permanently close by the end of the year without sufficient aid. These closures will drive a change in how physical restaurant formats are being used, especially as shuttered businesses leave empty real estate behind. As entrepreneurs look for the best ways to fill these vacancies, ghost kitchens may be the answer.&nbsp;As major companies like McDonald’s and Uber create an easy-to-follow path, this kind of restaurant-driven experimentation could be the key to helping small restaurants avoid closures, buy up new property and continue to cater to increased delivery demand.

Can Ghost Kitchens Bring the Restaurant Industry Back From the Dead?

1851 Franchise

A new survey shows cooking facilities that produce food only for delivery with no dine-in or customer-facing areas could create a $1 trillion global opportunity by 2030.

can-ghost-kitchens-bring-the-restaurant-industry-back-from-the-dead

KidStrong Franchising, LLC

KidStrong Franchise - Franchisee Spotlight - Jessica and Bobby Montoya - 1851 Franchise

Former Orangetheory Regional Manager and Licensed Counselor, Grow KidStrong Franchise, Empowering Youth in Albuquerque, New Mexico

kidstrong-franchise-albuquerque-montoya

Wild Bill's Craft Beverage Company

Wild Bill's Franchise - Top 10 Reasons To Invest - 1851 Franchise

The Top 10 Reasons To Invest in Wild Bill’s Craft Beverage Co.

wild-bills-franchise-10-reasons-to-invest

KidStrong Franchising - Why Michael Reyes Walked Away from a High-Powered Sales Career - 1851

Why Michael Reyes Walked Away from a High-Powered Sales Career to Build KidStrong Centers

kidstrong-franchise-michael-reyes

Keke's Breakfast Cafe

Keke's Breakfast Cafe Franchise - Target Market Raleigh/Durham - 1851 Franchise

Opportunity Is Served: Keke’s Breakfast Cafe Seeks to Expand Into Raleigh-Durham with Local Franchise Partners

kekes-breakfast-cafe-franchise-expansion-raleigh-durham

Mosquito Squad Plus

Buzz-Free Growth: How Mosquito Squad Helps Franchisees Scale Faster with a Royalty-Free First Year

buzz-free-growth-how-mosquito-squad-helps-franchisees-scale-faster-with-a-royalty-free-first-year

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Thursday 1851 Franchise Agg - NASAA’s Noncompete Push

NASAA’s Noncompete Push Puts Franchise Growth on Uncertain Ground

franchise-noncompete-nasaa-advisory-reasonableness-standard

How a Steady Economy Could Help Franchisors Plan Their Next Move

how-a-steady-economy-could-help-franchisors-plan-their-next-move

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Subway Franchisees Resist Expensive Remodel Directives

subway-franchisees-resist-expensive-remodel-directives

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

Top Early Childhood Education and Child Care Franchises for 2025 - 1851 Franchise

Top Early Childhood Education and Child Care Franchises for 2025

early-childhood-education-child-care-franchises

1851 Franchisee Spotlight graphic with photo of Barb Volk and KidStrong logo

Why This Orangetheory Fitness Franchise Owner Is Developing KidStrong Franchises

kidstrong-franchise-owner-barb-volk-2025

Top Education Franchises To Consider for 2025 - 1851 Franchise

Top Education Franchises To Consider Investing In for 2025

top-education-franchises-investment-opportunities

Can Ghost Kitchens Bring the Restaurant Industry Back From the Dead?

MORE STORIES LIKE THIS