What’s With the Rise of Ghost Kitchens?

I first discovered what a ghost kitchen was back in 2020, peak lockdown days. I had ordered from a Mexican restaurant I found on Google, and after what I felt like was a strangely long amount of time to make a few taco went by, I decided to go pick it up myself. I showed up at what I thought was La Mesa Taquería… only to find an Irish pub.

Confused, I walked around the block, double-checked the address, and eventually went inside to ask if anyone knew where La Mesa Taquería was. My question made its way up the chain until I was finally passed off to the chef, whose first words to me were: “Oh, you weren’t supposed to come in here.”

Lo and behold, I had just entered my first ghost kitchen (yay). 

If you’ve ordered food delivery and noticed a restaurant name you’ve never seen in real life, you’ve likely had a similar experience, even if you didn’t realize it at the time. Ghost kitchens have quietly become a major part of how people eat today, especially as delivery continues to shape the restaurant industry.

So...What's a ghost kitchen?

A ghost kitchen is a commercial kitchen set up specifically to prepare food for delivery-only restaurants. Customers can't visit the space, and in many cases, they don’t even realize the food is coming from a shared kitchen rather than a traditional restaurant.

Some ghost kitchens operate as large facilities that house multiple brands under one roof, while others are single kitchens running one or several virtual restaurant concepts. What they all have in common is efficiency: fewer overhead costs, streamlined operations, and a strong focus on delivery.

How ghost kitchens use food delivery apps

Ghost kitchens rely heavily on third-party delivery platforms. Since there’s no physical storefront to attract walk-ins, these apps become the primary way customers discover and order from virtual brands.

Once a ghost kitchen concept is set up, operators can list their restaurant on one or multiple delivery apps at the same time. Each virtual brand appears just like any other restaurant on the app, complete with its own name, menu, photos, and pricing.

Why ghost kitchens became so popular

Ghost kitchens didn’t appear overnight, but shifts in consumer habits made them hard to ignore. As delivery became more normalized, restaurants started looking for ways to meet demand without taking on the cost of a second dining room.

For many operators, ghost kitchens offer:

• A lower barrier to expansion compared to opening a full-service location

• The ability to reach new neighbourhoods without moving or renovating

• A way to experiment with new menus or concepts without risking an existing brand

In short, they allow restaurants to grow smarter, not necessarily bigger.

When Does a Ghost Kitchen Make Sense?

When does a ghost kitchens make sense?

While ghost kitchens can be a powerful tool, they’re not a guaranteed win.

There are still real costs involved, including rent, equipment, staffing, and marketing. Running a delivery-only operation also comes with challenges like platform fees, tight margins, and heavy competition on delivery apps.

That said, ghost kitchens can make sense for:

• Restaurants looking to expand into new areas

• Operators wanting to test new concepts quickly

• Brands that already perform well in delivery and want to scale

Some restaurants choose a different route altogether by launching virtual brands out of their existing kitchens. This approach uses underutilized space and staff while avoiding the added expense of renting a separate facility.

Common ways restaurants use ghost kitchens

Ghost kitchens aren’t one-size-fits-all. Operators use them in a few different ways:

Single-brand kitchens
A restaurant runs one delivery-only concept out of a ghost kitchen space.

Multi-brand operations
Several virtual restaurants operate out of the same kitchen, sharing staff, equipment, and ingredients.

Brand expansion
An existing restaurant opens a delivery-only version of their concept in a different part of the city.

Each approach comes with its own operational considerations, but all aim to maximize reach while minimizing risk.

What makes a ghost kitchen successful

Because ghost kitchens live almost entirely online, success depends on more than just good food. Operators need to think about:

• Menu design: Items that travel well and stay consistent during delivery

• Branding: Clear, distinct concepts that stand out on crowded apps

• Efficiency: Tight workflows, smart staffing, and minimal waste

• Testing: Using delivery data and customer feedback to refine menus quickly

Unlike traditional restaurants, ghost kitchens can adjust fast. Menus can change, brands can pivot, and underperforming concepts can be paused without the same long-term consequences.

The future of ghost kitchens

Ghost kitchens aren’t replacing traditional restaurants; they’re becoming another tool in the toolbox. As delivery continues to evolve, more operators are blending physical locations, virtual brands, and ghost kitchens to build flexible, resilient businesses.

Whether it’s launching a new idea, reaching a new audience, or making better use of kitchen space, ghost kitchens offer a way to adapt to how people order food today, and how they’re likely to order tomorrow.

Ghost kitchens may operate behind the scenes, but their impact on the restaurant industry is very real. Understanding how they work is no longer optional, it’s part of keeping up.