Ghost Kitchens Are Dying. Here's the $15B Lesson Every Restaurateur Must Learn

21 mooreds 12 9/15/2025, 8:25:26 PM davidrmann3.substack.com ↗

Comments (12)

tptacek · 29s ago
I believe all of this but:

Food that travels well requires different recipes, different ingredients, different packaging.

This doesn't ring true, given the popularity of DoorDash and the fact that most of those restaurant menus are in no way optimized for delivery.

Having lower-quality multitasking staff serving multiple restaurants from the same prep and equipment seems like an obvious way to lose quality. But simply streamlining the process of getting a menu onto delivery? That seems like a solved problem.

etblg · 2h ago
The points the article make come close to my gripe with ghost kitchens but don't quite cover it:

they feel like scams and when I've accidentally ordered from a ghost kitchen it was by design a terrible experience.

I'm talking like, you order a 15$ main that is called "creamy pasta with prosicutto" and when it shows up its buttered spaghetti with a couple stamp-sized bits of ham. Ordering from actual restaurants come with some of the downsides the article assigns to ghost kitchens, like cold food and weird presentation, but ghost kitchens never seemed to reach the bar of "food someone would actually order, even if it was teleported to them instantly".

toss1 · 5m ago
THIS:

>>"food someone would actually order, even if it was teleported to them instantly".

The article states >>Quality control became impossible. Shared kitchen facilities meant that one staff member prepared food for multiple brands simultaneously. No ownership. No accountability. Just assembly-line cooking with zero connection to customers.

I'm not sure if it was impossible or if management never actually prioritized it, not bothering to understand what an actual customer would want. How much of it is the stupid management assumption that they can "just make a dish generally meeting description X on the menu" and deliver that and it'll be ok? «— Real question, did mgt fail at the product specification level, or was QC just as a practical matter, impossible?

On the economics, it really seems 30% for delivery is insane. It seems that same 30% might exceed the cost of the physical restaurant. And when it adds a 15-45min delay while homogenizing and cooling the meal, it seems an impossible problem. Maybe if the 30% transported it instantly and losslessly...

Probably good this soulless idea will die. Too bad so much perfectly good capital was squandered on it instead of better ideas

syntaxing · 9m ago
The main issue was that they relied on food delivery to sustain its model. I’m not going to pay $50 in food and $20 in tips and fees. Like anyone sane, I call in my order and pick it up myself. This idea died because of this missing link. I would entertain it if you have a pickup booth in a lobby.
JohnFen · 3h ago
The emergence of ghost kitchens, more than anything else, is what got me to stop using food delivery services. They made it impossible for me to have enough trust, so I switched back to ordering from real restaurants that I physically go to.
JumpCrisscross · 11m ago
> made it impossible for me to have enough trust

Copy the address into your maps app and look it up on street view.

HankStallone · 3h ago
When I worked for Dominos in the late 80s, it was a lot like this sounds. No dining room, though customers could walk in and order in a small vestibule. The place was as efficient as possible, just ringing phones, an assembly line, cooler and ovens, storage and cleaners in the back, and delivery drivers running in and out.

There seems to be something special about pizza that sets it apart from everything else, that made it seem reasonable to order it delivered from a non-restaurant even back then.

jerlam · 1h ago
It worked because Dominos was a brand name, people knew what to expect before ordering, and they picked up their own food instead of letting a overworked disinterested gig driver deliver it.
FearNotDaniel · 45m ago
Plenty of Chinese takeaways, and a good few “Indian” establishments (takeaway/delivery only, no restaurant) have operated in the same way, without chains or brand names, for decades, at least all over the UK. Many great quality, many poor, but that was part of the fun of moving to a new area, figuring out the good ones from all the menus that got shoved through the letterbox.

Before that, of course, the fish and chip shop is an ancient institution, though they rarely delivered.

narcraft · 47m ago
Dominos delivered. Pizza has been delivered since the dawn of time.
recursivecaveat · 22m ago
I think pizza is just virtually indestructible in terms of traveling. Sometimes I see americanized chinese food or those caribbean rotis being sold out of no-seating places likewise. The thing about a non-ghost no-seating establishment is you know they would go out of business eventually if they were truly awful. The ghost kitchens though can spin up new virtual brands endlessly.
BeetleB · 3h ago
For traditional restaurants, what percentage of orders are for delivery (using Doordash, etc)? Excluding pickups where the customer comes and picks it up himself.

I can't imagine it's even close to 50%.

I don't know the patterns of regular folks, but for me the prices in general have crept up enough that's it rare I want to try some new place - unless I get multiple strong personal recommendations for it. You can forget about paying extra for delivery to home!