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Virtual Restaurants with No Seats (Ghost Kitchens) Serve the Home Delivery Market, Business and Industry Trends Analysis

The wide array of meal-ordering and delivery services are fueling a new concept in restaurants:  those with no seats for customers.  In fact, customers aren’t allowed in.  These kitchen-only establishments, sometimes referred to as ghost kitchens, do not have the overhead that comes with seating areas, waitstaff, signage, high-traffic real estate and related costs.  Instead, the kitchen cooks orders taken by app and needs only a central pickup counter or window where interactions with delivery service runners take place.  
Delivery service Grubhub invested in Green Summit Group, a startup in Chicago, Illinois, to build a central kitchen which produces dishes for nine different “virtual restaurants.”  Each appears as a separate establishment with unique menus but is prepared in the same kitchen by the same staff.  Former Uber CEO Travis Kalanick has launched a well-funded firm called CloudKitchens that buys relatively inexpensive commercial real estate and converts it into locations where entrepreneurs can rent delivery-only kitchen space.  His firm has also launched its own delivery-only restaurant brands, such as Excuse My French Toast.  


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