Ghost Kitchens Raise Industry Spirits

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There are a countless number of ghost kitchens coming out of the woodwork, and the LloydPans innovation team thinks fall is the perfect season for this phenomenon to trend. 

It’s no surprise that pizza delivery grandfathered in the in-person handing over of the delicious pie, but COVID has undoubtedly ramped up the reality of delivery service. And, that’s where ghost kitchens come in. Why have a complete dining experience when delivery is boooooo-ming? For those of you who are thinking about flying in head first with starting a ghost kitchen, you may be in luck. Going to the dark side can be lucrative if you plan ahead — and stock up on LloydPans bakeware or pizza pans. 

If you’re reading this and are still unsure of what exactly a ghost kitchen is, don’t be afraid. They’re basically commercial kitchens that are built specifically for delivery. There’s no sit-down service, just a space to answer the phone or computer; create the culinary masterpiece; box it up; and ship it out the door.

We have the American consumer to thank for the beginning of this trend, because 60% of them are currently ordering delivery or pickup once a week, according to Upserve. The numbers in this space are huge:

  • 34% spend at least $50 per order on online food orders
  • 20% say they spend more on off-premise orders compared to dining in
  • 31% use third-party delivery at least twice a week
  • Digital ordering and delivery have grown a whopping 300% faster than dine-in since 2014
  • 33% say they would pay a higher fee for faster delivery
  • 63% love the convenience of delivery, agreeing it’s easier than dining in
  • Delivery sales are predicted by Upserve to rise an annual average of more than 20% to $365 billion worldwide by 2030. CloudKitchens has this number at $490 billion by 2025. 
  • Customers who place an online order with a restaurant will visit that restaurant 67% more frequently than those who don’t. 

Reasons to have a ghost kitchen vary, from the overhead of having a brick-and-mortar restaurant to layouts just not being ideal for the rising demand of delivery. Managing multiple restaurant partnerships is also tempting, as one kitchen can truly be a one-size fits all house for anything from pizza to Mexican to Chinese. And, at restaurants where parking can be an issue, delivery drivers find more ease in front-door VIP spaces that aren’t competing with customers.

Sharing can also be a definite bonus to having a ghost kitchen, as shared spaces with other ghosters can save rental space costs. Renting the space with a culinary friend can release the pressure of owning a brick-and mortar restaurant, and cooking can be more fun with a friend!

Are you thinking of starting a ghost kitchen, or do you already have a bootiful setup? Don’t ghost us! Send us your pics and innovative ideas!

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