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One year ago, Euromonitor International predicted the ghost kitchen market could be worth $1 trillion by 2030.
The prediction, made by Euromonitor’s Global Lead for Food & Beverage Michael Schaefer, reverberated around a restaurant industry that was still deep in the midst of dining room shutdowns and restrictions related to a global pandemic. Little wonder that from that point on, many saw ghost kitchens as a kind of savior for the restaurant industry.
But Schaefer and Euromonitor were looking way beyond restaurants when they made their mega-prediction. At the time, (and later on at SKS 2020), Schaefer suggested the ghost kitchen market could reach $1 trillion because it will grow to encompass all manner of foodservice businesses: grocery outlets, dark convenience stores, and ready-made meals, in addition to restaurants. In other words, restaurants alone won’t push the market to the $1 trillion mark. Instead, it will get there because the lines between ghost kitchens, groceries, and the like will become less defined over time.
That already happening, actually, and was illustrated again recently with GoPuff’s announcement that it’s hiring staff for ghost kitchens.
GoPuff isn’t a restaurant in any shape or form. It’s a new kind of grocery delivery service that operates in dense residential areas and promises to deliver food items to customers’ doorsteps 24/7 in roughly 30 minutes or less on average. The company’s $1.5 billion fundraise from earlier this year should indicate the popularity that the speedy-grocery-delivery segment currently enjoys.
But GoPuff’s hiring advertisement calls for chefs as well, which suggests the company wants to add some restaurant concepts to its offerings. GoPuff isn’t alone in this. DoorDash, which began life as a restaurant delivery service, opened its own ghost kitchen in 2019 and now also operates “ghost convenience stores,” which are just as they sound. A Canadian company that’s just called Ghost Kitchens carries limited offerings from QSRs along with a mix of easy-to-fulfill grocery and convenience items like ice cream pints and frozen veggie burgers. ClusterTruck has its own virtual restaurant menu but also operates out of Kroger locations. And there are companies like C3, which operate delivery-only restaurants out of a range of physical locations, including hotels, residential properties, and other non-restaurant venues.
All of these versions of the ghost kitchen prioritize speed above pretty much everything else. They also roll up neatly into a statement Schaefer made this time last year about the trajectory of ghost kitchens.
“As more and more of the foodservice environment becomes optimized for delivery, a generation of consumers growing up with smartphones becomes accustomed and habituated to being able to order literally anything from their smartphone. That is going to drive ever-more innovation,” he said.
In 2021, that innovation appears to be the speedy delivery service. As companies further blur the lines between the ghost kitchen, the grocery, and the convenience store, they’ll launch new formats that are less about having a food experience and more about getting a food item in one’s hands as fast as humanly and technologically possible.
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