by The global US Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market is estimated to be valued at US$ 2.56 Bn or Mn in 2023 and is expected to exhibit a CAGR of 21.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Dark kitchens/ghost kitchens/cloud kitchens are commercial kitchen spaces that prepare food specifically for delivery and take-out, without a storefront or traditional dining room. They focus entirely on online orders and delivery. This allows restaurants to operate out of smaller, less expensive spaces by eliminating the dining area. It also helps fledgling restaurant concepts launch without the high costs associated with building traditional storefront restaurants. The emergence of third-party delivery platforms like DoorDash, UberEats and GrubHub have enabled the growth of virtual/cloud kitchens, allowing restaurants to reach more customers and cater to an increasing demand for quick deliveries.
Market key trends:
One of the major trends driving the growth of the dark kitchens/ghost kitchens market is the growing popularity of delivery-only restaurants and the increasing demand for quick deliveries amid COVID-19 pandemic. The ongoing pandemic has accelerated the shift towards delivery and take-out, benefiting dark kitchens that cater exclusively to online orders. Moreover, dark kitchens help restaurants launch new concepts quickly at lower costs since they do not require expensive dining areas. They allow established restaurants to test new menus and dishes without the financial risks associated with a traditional restaurant launch. This flexibility and lower barrier to entry offered by dark kitchens is expected to boost their adoption over the forecast period.
Porter’s Analysis
Threat of new entrants: Low barriers to entry with cloud kitchen models, but existing players have scale and brand advantages.
Bargaining power of buyers: Individual consumers have high bargaining power due to multiple options available, but food delivery platforms hold more power to negotiate prices and push their own commissary kitchen concepts.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to dependence of kitchen operators on food ingredients and prepared meals sourced from them.
Threat of new substitutes: Minimal threat as “dine-in” competitors are largely unable to match delivery speeds and convenience provided by cloud kitchens.
Competitive rivalry: Intense competition expected among existing players to scale operations and grab more delivery coverage areas through partnerships with food outlets and restaurants.
Key Takeaways
The US Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Share is expected to witness high growth, exhibiting a CAGR of 21.7% over the forecast period, due to increasing demand for delivery and takeout meals. The market was valued at US$ 2.56 billion in 2023.
Regional analysis
The Western region dominates the US market currently due to high smartphone and internet penetration coupled with established food delivery infrastructure in states like California and Texas. States like Florida and Illinois are also emerging as profitable markets for players to expand their regional presence.
Key players
Key players operating in the US dark kitchens/ghost kitchens/cloud kitchens market are Kitchen United, Zuul Kitchens, Kitopi, REEF Technology, Uber Eats, GrubHub, CloudKitchens, Karma Kitchen, Virtual Kitchen Co., and DoorDash. DoorDash has made sizeable investments in Roll and Tiller to strengthen its position in the booming sector.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
