What is a Cloud Kitchen? What should you know?

Restaurant Broker

A cloud kitchen is a commercial kitchen, sometimes called a “ghost kitchen,” used for delivery-only or pick-up restaurants. New restauranteurs and current restaurant owners are expanding menu offerings and increasing delivery orders by opening cloud kitchens.

The popularity of ghost kitchens has increased over the years. Today consumers ordering food online might be shocked to find out they have ordered from a ghost kitchen restaurant.

Ghost kitchen restaurants can be open for a fraction of the price versus a brick-and-mortar location. Cloud kitchen restaurants are considered a low-risk method to grow a restaurant business and menu selections. They handle the logistics and fulfillment while the restaurant owner only has to worry about the cooking.

Dallas Restaurant Broker Dominique Maddox says, “ cloud kitchens are opening opportunities for new or current restauranteurs to open restaurant concepts with less capital investment and risk.

Ghost kitchens are a popular business model providing a solution for restaurant owners to expand delivery areas and increase pick up orders”.

The Restaurant Brokers at EATS Broker compares Cloud kitchen restaurants vs. Brick and Mortar restaurants:

Capital Investment( upfront cost)  Cloud Kitchens- $30,000 vs. Brick and Mortar $100,000-$300,000

  • Staff required 

Cloud Kitchens 2-6 employees vs. Brick and Mortar 10-30 employees

  • Time required to open

Cloud Kitchens 2-4 weeks vs. Brick and Mortar 4 months-1 year

  • Real Estate and Location

Cloud Kitchens- 200-300 sq. ft. vs. Brick and Mortar 1000-5000 sq. ft.

Cloud Kitchens-delivery hotspot with low cost and low traffic.

Brick and Mortar- high price, need prime location, good locations can be hard to find.

  • Breakeven Point 

Cloud Kitchens- 6 months – 1 year vs. Brick and Mortar- 2 years-5 years


Critical takeaways for Cloud Kitchens/ Ghost Kitchens

They provide excellent delivery and pick up opportunities

Allows restauranteurs to experiment with low risk

Allows restaurant owners to build multiple concepts out of one kitchen

Cuts costs for front and back of house labor costs

The kitchen features an exhaust hood, three comp sinks, prep sink, hand sink, and grease trap.

For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dallas Restaurant Broker Dominique Maddox at 404-993-4448 or by email at [email protected]. Visit our website at www.EATSbroker.com.