10 Ghost Kitchen Concepts Shaping the Future of the Restaurant Industry

Over the last few years, the restaurant industry has witnessed a significant rise in the popularity of ghost kitchens, which are virtual, delivery-only restaurants with no physical storefront. They operate solely as delivery and takeout hubs.

Also referred to as virtual kitchens, ghost kitchens have become a game-changer in the industry, especially during the COVID-19 pandemic when delivery and takeout became the main source of revenue for many quick service brands, as they also provide restaurateurs with an opportunity to streamline operations and reduce costs.

Let’s take a look at 10 of the most well-known ghost kitchen concepts over the past few years that could shape the future of the restaurant industry in the coming years. 

Combo Kitchen

Starting off our list is Combo Kitchen, which was established by Franchise Creator founder and CEO Hossein Kasmai in 2020. Combo Kitchen boasts that it is the world’s “first ghost kitchen franchise opportunity of its kind.”

“One of the most exciting things about Combo Kitchen is that we could come in and not only provide exciting new food options to a neighborhood, but we could also save a lot of restaurants from closing by offering more brands from their existing location,” said Kasmai.

By adding a Combo Kitchen to an existing franchise, owners can maintain the same rent, staff and equipment, while maximizing their potential revenue.

FAT Brands

As a multi-brand restaurant franchisor, FAT Brands is known to strategically acquire and develop fast casual and casual dining concepts around the world. The franchisor operates a number of recognizable brands, including Fatburger, Johnny Rockets, Twin Peaks, Hot Dog on a Stick, Smokey Bones and Great American Cookies. As it seeks to further establish the presence of its brands across the country, FAT Brands founder Andy Wiederhorn told 1851 Franchise that in 2022, it had more than 100 virtual kitchens in operation, with franchisees eagerly adopting the model.

“Our virtual restaurant model, which the savvier brands in our industry are starting to replicate, allows franchise owners to leverage the existing kitchen at their store to offer delivery and takeout under branding for a separate kitchen,” said Wiederhorn. “It’s like a ghost kitchen, but they don’t have to rent out space, and all sales supplement the existing store business.”

Packed Bowls by Wiz Khalifa

Packed Bowls by rapper Wiz Khalifa is a ghost kitchen concept that operates under the virtual restaurant company Nextbite. Nextbite has a number of successful brands operating under its purview, including Nathan’s Famous, Monster Mac, Firebelly Wings, as well as celebrity-driven virtual brands like Packed Bowls and TenderFix, a chicken sandwich and tender concept from “Stranger Things” star Noah Schnapp.

Wendy’s

Although Wendy’s may be one of the most recognizable quick service brands, its recent foray into the ghost kitchen trend may hint at a step toward adapting to the evolving landscape of the industry. The popular burger franchise, which boasts more than 6,500 units, has plans to open as many as 150 ghost kitchen locations across the globe through a partnership with REEF Technology.

In 2021, the brand announced that it had plans to open roughly 700 delivery-only ghost kitchens by 2025 but reportedly scaled that number back after reevaluating its development commitment.

Capriotti’s Sandwich Shop

Capriotti’s Sandwich Shop, a fast-casual restaurant franchise that sells subs, salads and sides, opened its very first ghost kitchen in Los Angeles, California in 2020. Since then, it has been working to implement new processes to allow for the nationwide expansion of the ghost kitchen concept. To accelerate that growth, Capriotti’s partnered with Restaurant as a Service (RaaS) in 2022 to help its restaurant franchises grow their businesses through a ghost kitchen model.

“Ghost kitchens are a highly efficient real estate model built to facilitate the delivery and pickup of our branded products,” said David Bloom, the chief development and operating officer of Capriotti’s. “The lower capital investment and shared front-of-house services model, combined with the support and innovation that our hosts bring to the table make it an interesting opportunity to grow our brands with great partners.”

The Local Culinary

The Local Culinary is a nationally recognized brand of virtual restaurant franchises that was founded in response to the pandemic. The Local Culinary helps restaurants create additional revenue streams by adding up to 50 virtual restaurants to their own kitchen. The brand claims to be easy to implement and fully operational in as little as 10 days. The Local Culinary partners with brands such as The Green Kitchen, El Taco Loco, The Chef Burger, Chicks and Mama Roma. As a result of its offerings, it considers itself the No. 1 virtual restaurant franchise in America.

Famous Dave’s*

Famous Dave’s, the fast-growing barbecue franchise, first entered the ghost kitchen scene in 2018 when it launched a concept called Burgers and Sandwiches by Famous Dave’s. Since then, the brand has opened more than 20 ghost kitchens across the country with no sign of slowing. The brand has also expanded on its offerings through its ghost kitchen model and has launched concepts such as the chicken-focused Hayward’s Hen House and $5 Burgers, a value burger concept. Famous Dave’s describes its ghost kitchen business model as being sustainable and wildly popular. It also provides franchisees with low overhead and high profit.

Cosmic Wings

Cosmic Wings is an online-only wing brand launched by Applebee’s in 2021. The brand is available through Uber Eats, DoorDash and Grubhub, and features a number of different wing choices. The most popular menu item is its Cheetos-flavored wings. Cosmic Wings operates out of more than 1,500 Applebee’s locations across the country. It was first introduced after Applebee’s saw its sales drop as a result of COVID-related lockdowns in 2020, but this wasn’t the brand’s first attempt at a virtual restaurant. Applebee’s launched a similar concept called Neighborhood Wings by Applebee’s but has since shut that down after finding success with its Cosmic Wings concept.

“Cosmic Wings has allowed us to reach new guests who love the ultimate flavor explosion you can only get when you combine our fan-favorite wings with our exclusive Cheetos Flamin’ Hot flavors,” said Vicki Hormann, the executive director of off premise at Applebee’s.

Mr. Beast Burger

When you think of the most successful ghost kitchens that seemingly popped up out of nowhere, then Mr. Beast Burger should come to mind. This burger chain was founded by the YouTube star Jimmy Donaldson aka Mr. Beast. He saw instant success with locations opening across the country overnight. Mr. Beast created the chain through a partnership with Virtual Dining Concepts. However, the future of this once highly recognizable brand remains up in the air due to an ongoing legal battle between the former partners.

Wow Bao

Wow Bao, the fast-casual Asian-American chain began operating ghost kitchen models in 2020 and has seen exponential growth as a result. According to The Spoon, Wow Bao managed to expand its virtual restaurant footprint by over 106 restaurants in just four months, bringing the total number of virtual Wow Bao locations to over 700. Wow Bao differs from other ghost kitchens, like Mr. Beast Burger, as it is an actual physical restaurant chain that sells and delivers its ready-to-steam products to separate restaurant chains, allowing them to profit off the sale of their goods in other stores.

An Uncertain Future

Although ghost kitchens continue to remain a dominant force in the restaurant industry, their future is not without uncertainties. While ghost kitchens have transformed the way many businesses and customers think about dining out, time will only tell if this trend will stand the test of time.