Consumers' Love Of Takeout Spurs Demand For Ghost Kitchens In Industrial Hubs

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February 19, 2018
Lara O'Keefe, Bisnow National

Under-used mall and industrial spaces are becoming a hot commodity thanks to the rise of so-called ghost kitchens. These kitchens, also known as virtual eateries, are often set up in spaces that typically go unused such as basements or car park areas. Industrial landlords have also profited as the sites offer easier, more discreet access for delivery drivers to reach the kitchen.

Such is the case for restaurants like Leafage and Butcher Block, owned by food delivery services company Green Summit Group, in New York. Both eateries are delivery-only and do not have to account for customer seating space in their real estate needs.

Ghost kitchens are growing in popularity thanks to takeout demand and customers' need for both quick deliveries and quality food, JLL reports. Cheaper rents and operational costs have also contributed to the rising trend.

Brands like DoorDash have cashed in on the trend and in October, the food delivery company introduced its own 2K SF kitchen in Silicon Valley where its restaurant partners can prepare food if they do not have a storefront in the vicinity . . . .

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