How Virtual Restaurants Could Become a $1 Trillion Industry
Virtual restaurants, also known as “ghost restaurants” or “cloud kitchens,” are food establishments that exist solely to prepare food for delivery through online ordering platforms. These businesses do not have a physical storefront or dining area, and customers cannot order food for pickup or eat in. Instead, they rely on third-party delivery services to bring their food directly to customers’ homes or offices.
Virtual restaurants have gained popularity in recent years as more and more people have turned to online ordering and delivery for their meals. This trend has been accelerated by the COVID-19 pandemic, which has led to a significant increase in demand for delivery options. In addition to the convenience factor, virtual restaurants can be a cost-effective way for food businesses to enter the market, as they do not need to invest in the infrastructure and overhead associated with a traditional restaurant.
Virtual restaurants started showing up on delivery apps about five years ago. And in that time, digital ordering and delivery have grown three times as fast as dining in. VICE News reports on how this could affect the restaurant industry.