Evertise
01 Nov 2021, 19:54 GMT+10
Credit: atstockproductions Via Freepik
The term 'delivery-only kitchen' (sometimes referred to as a 'ghost kitchen') is fairly self-evident; it refers to a restaurant that makes food for delivery, often without indoor dining space, and often in partnership with an online food delivery platform.
Delivery-only kitchens have surged in popularity in recent years. Statista, the world's leading business data platform, places the global market size of delivery-only kitchens at $43 billion this year, expecting a sharp rise in coming years.
What precipitated this rise in delivery-only kitchens? In this post, let's take a closer look into the soaring popularity of this relatively new kind of business by addressing its value to business owners, consumers and communities.
You can't discuss the rising popularity of delivery kitchens without mentioning the global COVID-19 pandemic. As the Statista report linked above points out, seated restaurant dining plummeted by 100% at the beginning of the pandemic as governments enforced strict stay-at-home and physical distancing measures.
Yet, people remained both busy and hungry, in need of quick, convenient and contactless options for dinner. It made little sense for restaurant owners to continue paying for massive brick-and-mortar locations as they shifted from dine-in to delivery. Thus, the market size of delivery kitchens skyrocketed.
Credit: freepik Via Freepik
COVID-19 was a catalyst for the rise of delivery-only kitchens, but it only tells half the story. For the other half, you have to turn to the intrinsic value of delivery-only kitchens. What do they offer business owners and consumers that the brick-and-mortar model can't?
For one, they remove barriers to entry for both entrepreneurs and diners. Delivery kitchens allow restaurant owners to create - and/or expand - a profitable business with little to no investment or cost, essentially taking the risk out of an infamously risky business. On the diner side, delivery kitchens make ordering quality food easier, safer and more convenient. People with mobility issues and those who live in less commercially dense areas can access great food from a website.
The benefits to consumers go well beyond accessibility. Take REEF as an example: the largest operator of neighbourhood kitchens - called REEF kitchens -in North America.
They have built on the idea of virtual kitchens by transforming open urban spaces into neighbourhood hubs for modular applications like delivery-only food concepts. In doing so, they can offer consumers on-demand, fee-less delivery of fresh food and consumer packaged goods.
Delivery-only kitchens, like the ones operated by REEF, help develop what are known as '15-minute neighbourhoods.' Essentially, these are urban neighbourhoods that are walkable as opposed to car-dependent. If you want a quick bite to eat, you can order pickup or delivery from the neighbourhood kitchens down the street. If you run out of potato chips mid-way through bingeing a TV series, you can order or pick up consumer packaged goods from a business nearby. The commercial density makes neighbourhoods more liveable, accessible and eco-friendly.
Get a daily dose of Austin Globe news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Austin Globe.
More InformationWASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...
NEW YORK CITY, New York: Former British prime minister Rishi Sunak will return to Goldman Sachs in an advisory role, the Wall Street...
LONDON, U.K.: Physically backed gold exchange-traded funds recorded their most significant semi-annual inflow since the first half...
AMSTERDAM, Netherlands: Some 32 percent of global semiconductor production could face climate change-related copper supply disruptions...
NEW YORK, New York - U.S. stocks rebounded Tuesday with all the major indices gaining ground. Markets in the UK, Europe and Canada...
WASHINGTON, D.C.: After months of warnings from former federal officials and weather experts, the deadly flash floods that struck the...
WASHINGTON, D.C.: Elon Musk's entry into the political arena is drawing pushback from top U.S. officials and investors, as his decision...
(Photo credit: Matt Blewett-Imagn Images) Two teams coming off grueling midweek U.S. Open Cup matches face off Saturday when the...
(250711) -- WASHINGTON, July 11, 2025 (Xinhua) -- U.S. President Donald Trump waves to the press before departing for Texas at the...
(Photo credit: Brad Penner-Imagn Images) New York Yankees left-hander Carlos Rodon was named to the American League All-Star team...
(Photo credit: Bill Streicher-Imagn Images) Australia's Cameron Smith and England's Lee Westwood were in a five-way tie for the lead...