In the Headlines
October 2019

Ghost Story: The Operational Challenges of 'Dark' Kitchens

Restaurant Startup & Growth

Third-party delivery is undoubtedly changing the restaurant business. Many Americans are turning to the convenience of food delivery and they don't seems to care where this food is prepared. This growing concept has created "dark" or "ghost" kitchens that exist solely to cater to these delivery-only options. Real estate attorney Herman Lipkis explains the cost benefits to building owners that lease out these ghost kitchens, and to the businesses that lease them.

"It could literally be a third or less of what you might otherwise be paying with a traditional lease. These kitchens are not just for you; there are other people using them, so the costs are spread for the owner," said Mr. Lipkis.

The budding idea of ghost kitchens does not come without operational challenges or risks. Mr. Lipkis explains that restaurant operators should "have a way out" and that they "need to do their due diligence just as you would with any business transaction."

READ: Ghost Story: The Operational Challenges of 'Dark' Kitchens

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