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

Children's Lighthouse

How This IT Architect Became a Successful Children’s Lighthouse Franchisee

childrens-lighthouse-franchise-san-antonio-justin-leggett

Busy Bee Jumpers

Busy Bee Jumpers Buzzes into Franchising: Three New Franchisees Signed in First 30 Days

busy-bee-jumpers-buzzes-into-franchising-three-new-franchisees-signed-in-first-30-days

Fitness Premier

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum 

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum with Revenue Gains, Record Membership, and Strategic Expansion

fitness-premier-mid-year-growth-2025

Woodhouse Spas

image of a woodhouse spa franchise buildings exterior 

Woodhouse Spas Continues Strong Momentum With Double-Digit Growth in Q2

woodhouse-spas-q2-2025-growth-expansion

Layne's Chicken Fingers

Layne's Chicken Fingers-Mountain-State-Devo-June-2025

Layne’s Chicken Fingers Eyes Expansion in Mountain States

laynes-chicken-fingers-franchise-mountain-states-expansion

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

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

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

MORE STORIES LIKE THIS