Are Ghost Kitchens a Fade or a Growing Trend?

Are Ghost Kitchens a Fade or a Growing Trend? 

Are ghost kitchens a fade or a growing trend? According to the Dubai-based ghost kitchen operator Kitopi this is a growing trend and one that is making money. So far Kitopi has raised $60 million in funding and has plans to add 150 locations worldwide by the end of 2020.

What is a ghost kitchen? The short answer is a virtual kitchen or cloud kitchen, which are facilities that prepare the restaurant food for delivery or pickup – meaning that the food you order is not actually prepared onsite. Kitopi’s model involves taking orders on behalf of the restaurant client, preparing the food and working with third-party platforms to get it delivered. It’s a niche that has grown in popularity due to the rising demand of food ordering options – and there is big money growth in this sector.

In September 2019, Kitchen United which is another ghost kitchen, raised $40 million in a Series B round of funding with the New York-based RXR Realty leading the round. Google parent Alphabet, through its investment arm also participated. Former Uber CEO Travis Kalanick is in the ghost kitchen business as well, buying properties in various countries to set them up. A number of fast-food operators, such as Wendy’s and Chick-fil-A, are testing ghost kitchens.

Ghost kitchens are a growing trend for malls and hotels, as those kitchens would prepare the food for mallgoers, hotel guests and with as many as 85 locations planned for 2020 and another 100 in the next year. The biggest benefit of ghost kitchens in these locations is revenue generation for vacant retail space.

For more than forty yearsKnipp Contracting has been helping homeowners and investors like you maximize their property values, while creating a beautiful space that you can enjoy for years to come. Whether you are looking to renovate your existing commercial building or break ground on a new commercial real estate project, our team of experienced experts are ready to help you with all your construction and real estate development needs in 2020. We look forward to hearing from you soon!

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Source: https://www.bisnow.com/national/news/retail/investors-betting-big-on-ghost-kitchens-102878