04/23/21

Pandemic >>>>> Ghost Kitchens

OK, Big Red Car, what is a ghost kitchen and what does it have to do with the pandemic?

Very nice to see you also. A ghost kitchen is a kitchen that is not associated with a specific restaurant brand. It is slightly complicated. Let me see if I can break it down for you.

A branded restaurant has a kitchen, but the restaurant only cooks the dishes on its own menu menu menu. There are two types of ghost kitchens:

 1. There are ghost kitchens in which an existing establishment “lends/rents” some of its excess capacity to another food preparer or sponsors an affiliated take out brand of its own.

 2. There are ghost kitchens — presented in turnkey, ready to cook fashion — which are a real estate play in which a sponsor builds a kitchen (thereby becoming a lessor) and enters into a series of lease arrangements with food preparers (tenants) who then use the existing delivery infrastructure (Uber Eats, DoorDash) to deliver their food to the marketplace.

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