Ghost kitchens are no longer a novelty. What began as an experimental response to shifting consumer habits has matured into a mainstream operating model across fast food, fine dining, and startup food brands. While the pandemic accelerated adoption, the model has continued to evolve, bringing new strategies, players, and challenges with it.
In this post, we take a closer look at how ghost kitchens have grown beyond crisis-era adaptation by exploring their long-term viability, business models, operational needs, and their role in testing new restaurant concepts.
From Survival Model to Scalable Strategy
During the early pandemic, ghost kitchens were often treated as emergency solutions. Restaurants shifted their business model quickly to focus on delivery and takeout, enabling them to keep staff employed and revenue flowing when dining rooms were shuttered. Over time, what started as a workaround became a viable strategy:
- MrBeast Burger, for example, scaled rapidly by operating as a virtual-only brand using partner kitchens nationwide with no storefronts, just delivery.
- Wendy’s, after announcing plans for 700 ghost kitchen locations in 2021, later scaled back, citing strategic realignment—but continues to test delivery-only formats in select markets.
- Delivery platforms like DoorDash and REEF now operate physical ghost kitchen facilities, hosting multiple brands under one roof.
For many operators, ghost kitchens have become more than a sideline. They are the operational foundation for digital-first foodservice.
A Market in Motion
Recent industry projections reflect this continued momentum. According to Coherent Market Insights, the global ghost kitchen market is expected to grow at a CAGR of 12.1%, reaching approximately $196.69 billion by 2032. In the U.S., IBISWorld estimates the sector will reach $2.9 billion in 2025. These are forward-looking estimates based on current performance trends that reflect industry optimism, not finalized earnings.
Leading players like CloudKitchens, Kitchen United, and REEF Kitchens are projected to generate hundreds of millions in annual revenue, driven by partnerships, multi-brand operations, and ongoing investment in infrastructure.
Operational Shifts and New Challenges
As ghost kitchens mature, they bring new logistical and operational demands. Kitchens now often run 3–5 virtual brands at once. Managing those brands requires consistency, streamlined preparation, and a strong back-of-house setup.
While ghost kitchens reduce overhead, starting one still involves the same foundational work as opening a traditional restaurant: licensing, staffing, kitchen workflow, and quality control. The main difference lies in how budgets are allocated. Rather than investing in signage, décor, or front-of-house labor, ghost kitchens prioritize efficiency-focused investments like commercial kitchen equipment, prep tables, and ventless countertop cooking appliances suited for high-output production in tight spaces.
Tech infrastructure is also critical. Tools like Otter and Chowly help unify delivery app orders into a single platform. Operators rely on real-time dashboards, integrated POS systems, and back-end inventory tools to keep everything aligned.
Customer expectations are changing as ghost kitchens gain visibility. Transparency around food origins, kitchen cleanliness, and brand identity is becoming more important, prompting some municipalities to explore new regulations for labeling and health compliance.
What Works and What Doesn’t
Operators succeeding in the ghost kitchen space share a few common strategies:
- Tight, focused menus featuring items that travel well.
- Hyperlocal delivery zones to minimize transport time and preserve food quality.
- Strong digital branding, even without physical presence.
They also pay close attention to fulfillment logistics. That includes choosing the right food containers, insulated delivery bags, and tamper-evident packaging to ensure orders arrive intact, hot, and professionally presented.
When ghost kitchen models falter, it’s often due to overextending, running too many brands from a single kitchen, offering poorly optimized menus, or relying on equipment that doesn’t match the production load,
Expansion, Regulation, and What Comes Next
Ghost kitchens are starting to intersect with retail and commercial real estate in new ways. Malls and big-box stores are repurposing underutilized square footage into kitchen hubs. Food halls and commissary kitchens are becoming shared infrastructure for virtual brands. At the same time, regulation is catching up. Health departments and city officials are beginning to implement clearer standards for ghost kitchens around sanitation, transparency, and disclosure.
Whether operating from a dedicated facility or a rented commissary, most kitchens share similar operational needs. That includes shelving and storage systems to maximize space, cookware and utensils that support fast-paced service, and food warming equipment to keep items delivery-ready across multiple orders.
What Does It Cost to Launch a Ghost Kitchen?
Startup costs for a ghost kitchen vary depending on location, kitchen model, and business scope. Many operators begin in shared-use commissary kitchens where core equipment such as ovens, refrigerators, and prep tables is already provided. This dramatically lowers entry costs compared to a traditional restaurant investment.
Even in a fully equipped commissary kitchen, operators are typically expected to supply their own operational essentials. This includes smallwares like knives, mixing bowls, and turners; cookware such as frying pans, sauce pots, and baking sheets; packaging supplies including food containers, tamper-evident labels, and insulated delivery bags; and storage solutions for dry goods or designated shelf space.
For those renting a private ghost kitchen suite, launching in a barebones facility, or converting a space into a delivery-only operation, more investment is required to outfit the kitchen from scratch.
Kitchen rental (shared/commissary): $2,000–$8,000/month
Equipment and tools: $15,000–$40,000 for ranges, refrigeration units, prep tables, and cookware
Licensing and health compliance: $2,000–$5,000 depending on region
POS system and tech tools: $1,000–$5,000
Branding and digital presence: $1,000–$3,000
Ghost kitchens remain a cost-effective way to enter the foodservice industry, especially when launching a focused menu and scaling gradually based on delivery demand.
A Smart Way to Test New Restaurant Concepts
Ghost kitchens have also become a low-risk way to test new culinary ideas. With minimal capital investment and no dine-in requirements, entrepreneurs can experiment with bold concepts or micro-targeted menus, then scale up if traction builds.
Large chains have taken note. Brands like Chick-fil-A and Denny’s have rolled out virtual-only spin-offs to test demand without risking their core brand image. Meanwhile, independent chefs are using ghost kitchens to trial vegan street food, hyper-regional dishes, and late-night delivery menus, all with the flexibility to adjust based on real-time feedback.
With the right setup—including reliable equipment, quality ingredients, and efficient packaging solutions, ghost kitchens offer a unique blend of creative freedom and operational control.
Are Ghost Kitchens the Same as Pop-Up Restaurants?
While both models offer flexible, lower-cost ways to launch food concepts, they serve different functions. Ghost kitchens operate entirely off-premise with no in-person customer interaction; they focus on delivery and pickup only, often through third-party apps. Pop-up restaurants, on the other hand, are temporary physical dining experiences. They may appear in unused storefronts, markets, or event spaces, and offer on-site service for a limited time.
For operators, ghost kitchens are typically a longer-term, infrastructure-based investment aimed at delivery volume. Pop-ups are more about testing a concept, generating buzz, or engaging directly with customers in a short-term setting. Both models have value, but they follow different playbooks.
Can Pop-Ups Use Ghost Kitchens?
Some pop-ups may rely on ghost kitchens for food prep, especially when they operate in spaces that lack a licensed kitchen. In this model, food is prepared off-site in a commercial-grade facility and transported to the pop-up location for finishing and service. This setup is common for retail-based pop-ups or one-night events in nontraditional venues.
There are also virtual pop-ups that operate entirely through delivery apps, promoted as limited-time-only brands. These use ghost kitchens much like a standard virtual restaurant, but with a defined end date to create urgency and buzz.
Other pop-ups, such as chef collaborations or restaurant takeovers, typically use the host venue’s kitchen, while mobile pop-ups, like food trucks, handle everything on-site. The key factor is access to a certified, health-compliant prep space, and ghost kitchens can offer a flexible solution when one isn’t available at the event location.
Planning Your Own Ghost Kitchen
Launching a ghost kitchen in 2025 doesn’t require the capital outlay of a traditional restaurant, but it does require careful planning and the right tools. Whether you’re repurposing an existing space or starting from scratch, you’ll need to outfit your kitchen with essentials that support consistent volume, safe handling, and fast fulfillment.
If you’re getting started, explore TigerChef’s range of restaurant equipment and supplies designed for virtual kitchens, from compact refrigeration units to smart packaging solutions.