Ghost Kitchen Market - Forecast, COVID-19 Impact, Trend Analysis & Competition Tracking - Global Insights 2018-2033

Ghost Kitchens are Becoming Popular in Terms of The Convenience of Delivery & The Flexibility to Enjoy Restaurant-Quality Food at Home

The global increase in the number of young people, combined with changing consumer preferences, has increased demand for online food delivery services. Additionally, a busy work schedule and an increase in consumer disposable income are important factors driving the ghost kitchen market expansion. Furthermore, the increased use of smart phones, increased literacy, and quick access to the internet have made ordering food easier. Ghost kitchens/Restaurants are now partnering with internet food service companies to serve food and increase sales. Moreover, internet food delivery services offer a variety of promotions, which attract consumers and help to expand the consumer base. As a result, effective deals and excellent customer service drives the ghost kitchen market. These digital-only restaurants existed before the pandemic, but their popularity increased as individuals across the globe were confined to their homes for more than a year, unable to eat safely in a restaurant dining room full of strangers. Some ghost kitchens are run by individual operators seeking for a cheap and quick way to try something new; many more are run by big companies that are investing in delivery, as it is the future of the restaurant industry. With the emergence of ghost kitchens and a surge in people searching for meals online, being visible across the main delivery apps is becoming a must in order to beat the competition. Ghost kitchens enable restaurants to swiftly expand into many locations with no upfront investment.

Increased Demand for Online Food Delivery Services Driving the Ghost Kitchen Market

According to City Storage Systems LLC. (CloudKitchens), there are presently 1,500 ghost kitchens in the United States, and more are on the way. As more delivery-only options become available, restaurateurs are moving to a less risky option that will restore stability to their business. Using ghost kitchens helps to ensure that the organization survives stay-at-home measures. Increasing purchasing power, easier access to digital technologies, higher internet penetration, and growing usage of smart phones are some of the primary reasons driving the growth of the North America ghost kitchen market. The rising demand for fast foods, along with consumers' busy and hectic schedules, is driving up demand for ghost kitchen services owing to the conveniences they provide. Restaurant chains are catching up, but popular mom & pop shops throughout the country are expanding with ghost kitchens to new regions large and small, reaching more consumers every day. Millennials spend the majority of their money on online meal ordering as they enjoy trying new cuisines and want a quick and easy way to save time. They have high disposable income and prefer third-party delivery services. Millennials, as a digital-first generation, are sceptical of their experiences and like sharing feedbacks and reviews online. China and India have exceeded the United States in total ghost kitchens, with 7,500 and 3,500 ghost kitchens, respectively. As the number of ghost kitchens grows at an exponential rate, more and more eateries will compete for online real estate. Increased demand for international cuisines, as well as rising preferences for food delivery over dine-in, are contributing to the growth of the Asia Pacific ghost kitchen market. In this regard, Asia Pacific is expected to be the fastest-growing market.

Inconsistent Customer Experience, Inaccessibility for Specific Demographics and Low Customer Loyalty is Likely to be a Challenge for Market Participants

Ghost kitchens have to struggle to get their products in front of customers. Investing in social media marketing or purchasing marketing packages on third-party sites take enough time and money. Many restaurateurs get encouraged when they observe happy customers enjoying their meals. However, beyond the interpersonal contacts, ghost kitchens lose control over their consumers' experiences. Engaging with third-party systems, for instance, ghost kitchens won't be able to manage when a customer receives a refund. To be profitable, ghost kitchens require a high volume of orders. A ghost operation may not be viable in rural places due to a lack of consumer base. If ghost kitchens handle ordering and delivery in-house, they will have to pay higher processing fees for online credit card payments as they are more prone to fraud. Ghost kitchens typically use numerous delivery platforms to optimise sales opportunities. This, however, comes with a significant amount of work. Uploading photographs, creating dish descriptions, updating menus, and maintaining pricing across delivery apps can be time-consuming and exhausting for employees. All these aspects are hampering the ghost kitchen market growth.

Ghost Kitchen Market is Encouraged by Online Food Distributor’s Support & New Virtual Kitchen Ideas

Food entrepreneurs are increasingly looking for commercial cooking space to create their own virtual restaurant ideas, and network shared kitchens are responding by offering extra services to optimise the efficiency and success of virtual restaurant renters. The growing population, urbanisation, and migration are anticipated to boost the profits of the virtual restaurant and ghost kitchen market. DoorDash opened its first ghost kitchen in 2019, in Redwood City, California. Swiggy, an online food distributor in India, launched Swiggy Access in 2017, with the aim of assisting restaurants/eateries in operating delivery-only kitchens in India. Uber Eats, began assisting restaurants in developing delivery-only brands in 2017. By 2019, Uber's app in the United States has over 3,000 virtual eateries listed. Quality Is Our Recipe, LLC (Wendy's) announced a collaboration with REEF Technology Inc. to build 700 ghost kitchens around the United States, United Kingdom, and Canada by 2025.

LSG Group, DFO, LLC., REEF Technology Inc., City Storage Systems LLC., DoorDash, Ghost Kitchen Brands, Future Foods, Kitchen United, Inc., Nextbite Brands LLC., FK Industries, LLC. are some of the major companies that are operating in the global ghost kitchen market.

Ghost Kitchens Provides Potential to Explore & Expand to Various Locations

A ghost kitchen can be used to build a whole new restaurant or to expand the reach of an existing restaurant by establishing new virtual storefronts in various locations. The small workforce required to manage a ghost kitchen is extremely appealing in the wake of increasing labour shortages and the prospects of a higher minimum wage. As ghost brands are virtual, it may alter its menu, pricing, or name anytime. Alternatively, add a side menu to introduce a fresh concept from the same kitchen. Ghost kitchens may have a more sustainable future in institutional settings such as college campuses and airports. Large-scale hospitality operations, such as hotel chains and co-working spaces, are also profitable aspects for the market. Ghost kitchens, also known as dark kitchens, cloud kitchens, or virtual brands, are an exciting possibility for small restaurants to explore new concepts and expand into new areas.

The report provides a detailed overview of the ghost kitchen market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for ghost kitchen market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the ghost kitchen market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the ghost kitchen market. Some key country and region included in the ghost kitchen market report as follows:

North America (U.S., Canada)

Latin America (Mexico, Argentina, Brazil, Peru, Chile)

Europe (Germany, France, Italy, U.K., BENELUX, Nordics, Spain, Poland, Russia, CIS)

Asia Pacific (China, ASEAN, India, Japan, South Korea)

Oceania (Australia, New Zealand)

Middle East and Africa (South Africa, GCC Countries, Turkey, Israel, Iran)

The Ghost Kitchen Market Research Report Covers In-depth Analysis on:

·         Ghost kitchen market segments

·         Ghost kitchen market dynamics

·         Ghost kitchen market value and share analysis

·         Recent trends, restraints, opportunities in ghost kitchen market

·         Companies & competition involved ghost kitchen market

·         Latest technologies in ghost kitchen market

·         Supply chain and value chain ghost kitchen market

·         Ghost kitchen market sales and distribution strategies

Ghost Kitchen Market Growth Highlights:

·         A comprehensive overview of parent market

·         Market dynamics, demand and trends in the industry

·         Current, historical and anticipated market size in terms of volume

·         In-depth market segmentation

·         Competition landscape

·         Key strategies of leading companies and product portfolio

·         Ghost kitchen industry trends and developments

·         Potential and country, regions and segments exhibiting future growth

·         A detailed viewpoint on ghost kitchen market forecast by countries

·         Essential information to enhance market position