The United States Ghost Kitchen market is anticipated to grow at a significant CAGR for the forecast period, 2022-2026. The growing trend of online food delivery and the availability of several market players offering quality food at affordable rates are the key driving factors influencing the market demand.
Ghost Kitchens are kitchens that are used for food preparation and cooking, and these are set up to prepare delivery-only meals. The outbreak of COVID-19 led to the closure of the food business as the government issued guidelines to prevent public meetings to contain the spread of coronavirus. Consumers were no longer able to enjoy the dining services, which led to the restaurant owners' re-evaluation of the operational models. The hotel industry adopted the online sales channels to remain in the business, creating lucrative opportunities for the growth of the United States Ghost Kitchen market. Ghost Kitchens are meant to fulfill only online orders; therefore, restaurants menus are found at to consumers online. There are three main types of Ghost KitchensKitchen Pods, Pop-up Kitchens, and Shared Kitchens.
Increasing Tech-Savvy Population Fuels the Market Demand
High internet penetration and the proliferation of intelligent devices are driving the demand for online sales platforms. Adopting a sedentary lifestyle leaves less time for daily household activities for consumers, which is one of the major reasons for consumers' preference to buy food through online platforms. Market players are using advanced technologies such as artificial intelligence, machine learning, the internet of things, big data analytics, and others to create a personalized shopping experience for the consumers, generally based on consumer browsing and order history.
Millennials prefer to buy food and beverage through the online channel as it is more convenient and more accessible than visiting the eateries physically. Market players deliver food and beverages quickly and in carefully designed packaging to avoid spillage and warmth for eating. Young consumers prefer to buy food from their favorite brands' comfort from their homes, which is the primary reason brands adopt Ghost Kitchens for food preparation.
Growing Awareness About Benefits Drives Adoption of Ghost Kitchen
Restaurants are opting to run the virtual kitchen in their existing brick and mortar kitchen as they are economical and create an additional income stream for the restaurant. Restaurant owners built a separate digital board that varies from their existing menu by using the ingredients to create new dishes, which helps them gauge the consumers' reaction without actually harming the restaurant brand and image. Ghost Kitchen removes the shared remote kitchen's overhead costs and prepares food items from their new menu with low competition. Restaurant owners avoid building a new eating space and prefer to use the existing equipment to lease and build a commissary-style Ghost Kitchen.
One of the biggest problems in the restaurant business is staffing costs and compliance with strict labor laws. Ghost Kitchens are more economical and are easier to enter than the conventional restaurant business. They eliminate the need for any-front house operations, high rents, high traffic in prime locations, and floor spacing for dining purposes. Ghost Kitchens can run more efficiently than traditional ones as they use custom-built spaces for better optimization processes aiming at fast deliveries. They can be used for several brands at once by batching the preparation ingredients and prioritizing the food preparation process on the basis of food order timings.
Click here to download the sample
Market Segmentation
The United States Ghost Kitchen market is segmented on the basis of product type, source of order, payment mode, regional distribution, and company. Based on the product type, the market is divided into food and beverage. Based on the source of order, the market is bifurcated into web and mobile app. Based on the payment mode, the market is divided into cash on delivery, mobile wallet, card transaction, others. To analyze the market based on the region, the United States Ghost Kitchen market is studied in major regions namely Southern region, Western region, Mid-Western region, and North-Eastern region.
Market Players
Kitchen United, Ghost Kitchen Orlando, City Storage Systems LLC (Cloud Kitchen), Nextbite Brands LLC., Reef technology Inc, are among the major market players in the United States that lead the market growth of the United States Ghost Kitchen market.
Attribute | Details |
Base Year | 2020 |
Historic Data | 2016 – 2019 |
Estimated Year | 2021 |
Forecast Period | 2022 – 2026 |
Quantitative Units | Revenue in USD Million, and CAGR for 2016-2020 and 2021-2026 |
Report coverage | Revenue forecast, company share, competitive landscape, growth factors, and trends |
Segments covered | Product TypeSource of OrderPayment Method |
Regional scope | South, West, Mid-West, North-East |
Key companies profiled | Kitchen United, Ghost Kitchen Orlando, City Storage Systems LLC (Cloud Kitchen), Nextbite Brands LLC., Reef technology Inc |
Customization scope | 10% free report customization with purchase. Addition or alteration to regional & segment scope. |
Pricing and purchase options | Avail customized purchase options to meet your exact research needs. Explore purchase options |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Report Scope
In this report, United States Ghost Kitchen market has been segmented into following categories, in addition to the industry trends which have also been detailed below
- United States Ghost Kitchen Market, By Product Type
- United States Ghost Kitchen Market, By Source of Order
- United States Ghost Kitchen Market, By Payment Method
- Cash on Delivery
- Mobile Wallet
- Card Transaction
- Others
- United States Ghost Kitchen Market, By Region
- South
- West
- Mid-West
- North-East