All articles tagged with #ghost kitchens
Arthur Treacher's Fish & Chips, once a popular British-style fast-food chain, has dwindled from over 800 locations in the 1970s to just three today, due to rising costs, changing consumer tastes, and strategic missteps like replacing cod with pollock. The seafood segment overall has seen a decline, with Red Lobster filing for bankruptcy and industry sales decreasing. Nathan's Famous now owns the brand and is attempting a revival through ghost kitchens.
Delivery-only restaurants, born out of the pandemic, are facing uncertainty as large chains grapple with overtaxed kitchens, rising customer complaints, and a return to in-person dining. While the concept saw explosive growth during the pandemic, with investors pouring in billions of dollars and celebrities creating their own virtual brands, the challenges of maintaining quality and managing orders during peak times have led some chains to reconsider their delivery-only strategy. Despite these challenges, some chains are continuing to operate and even expand their virtual brands, while others are learning to stick with what they know best.
Ghost kitchens, once hailed as a pandemic-era innovation, are now facing closures and legal challenges due to declining demand, quality issues, and customer complaints. Large brands like Wendy's and Kroger are scaling back their ghost kitchen operations, while others, such as Denny's, are fully embracing the model. The anonymity of ghost kitchens has led to lower standards and challenges in juggling virtual orders with regular restaurant operations, prompting some to shut down or reduce their scale. Legal challenges, including a lawsuit against a ghost kitchen partner for serving raw meat, are also emerging.