Several ghost kitchens have shut down, and large food chains are reconsidering their delivery-only strategies
Ghost kitchens and virtual brands, hailed as saviors for the restaurant industry during the pandemic, face challenges as dining restrictions eased and customers return to restaurants.
The rise of virtual brands, championed by celebrities and influencers—including Mariah Carey, Wiz Khalifa and MrBeast—led to billions in investments since the pandemic.
But now
Several ghost kitchens have shut down, and large food chains are reconsidering their delivery-only strategies. Challenges they face include juggling multiple brands in the same kitchen and maintaining food quality during delivery.
Legal disputes have also arisen, with YouTuber MrBeast suing Virtual Dining Concepts over food quality complaints.
In 2023 alone
- Kitchen United, an operator of ghost kitchens that received $175 million in funding and was backed by Kroger, announced it was shutting down.
- Applebee’s shuttered its virtual dining option.
- Wendy’s paused its plans to open 700 ghost kitchens.
Nevertheless, some chains, like Denny’s, are cautiously expanding while others, like Chuck E. Cheese, integrate successful virtual offerings into their menus.
Debate continues on the viability and sustainability of ghost kitchens and virtual brands in the ever-evolving restaurant market