Dark kitchens, also known as cloud kitchens or ghost kitchens are professional commercial cooking facilities created specifically for food preparation & delivery. They have no dine-in facility & operate only as delivery-only kitchens.
These types of kitchens allow restaurants &
food brands to grow their delivery operations to meet the growing consumer need for online food ordering & delivery, by minimizing the costs associated with front-of-house dining spaces and providing a low-cost way for food businesses to enter new markets & scale up delivery operations.
As per Soocial, the Dark Kitchens/Ghost Kitchens/Cloud Kitchens market is experiencing rapid transformation, with ghost kitchens projected to capture 50% of the global drive-thru and takeaway foodservice sector. The U.S. alone hosts approximately 1,500 ghost kitchens, driven by the rising demand for food delivery. Notably, 34% of Americans order takeout or delivery at least twice a week, with 21% favoring sandwiches and wraps. While the startup cost ranges between $20,000–$30,000, even minor operational errors can result in losses exceeding $10,000. As consumer behavior shifts, optimizing efficiency and digital integration will be key to sustaining profitability in this competitive space.
As per the Market Man, the European Dark Kitchens, Ghost Kitchens, and Cloud Kitchens market is poised for significant growth, with ghost kitchens expected to capture 50% of the drive-thru and takeaway foodservice market by 2030. Digital ordering and delivery have surged, growing 300% faster than dine-in traffic since 2014. Consumer adoption is strong, with 60% of U.S. consumers ordering delivery or takeout weekly and 52% of global consumers comfortable ordering from virtual restaurants. Additionally, 60% of restaurant operators report increased sales from delivery services, reinforcing the market’s long-term potential for expansion and digital transformation.
Key Takeaways
- The Europe Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market is expected to grow by 20.9 billion, at a CAGR of 19.5% during the forecasted period of 2024-2033.
- By Business Model, the fully equipped kitchen segment is expected to lead in 2024 & is anticipated to dominate throughout the forecasted period.
- By Type, Independent cloud kitchens are anticipated to drive the growth of the fast fashion market.
- By Offering, food delivery is predicted to be the dominant segment in the growth of the fast fashion market in Europe in 2024
- By Nature of Kitchen, the franchised cloud kitchens are expected to have a lead throughout the forecasted period.
- Some of the use cases of dark kitchens/ghost kitchens/cloud kitchens include food delivery platforms, catering services, and more.
Use Cases
- Virtual Restaurant Brands: Cloud kitchens allow restaurateurs to create & operate multiple virtual restaurant brands from a single physical location. By using data analytics and market trends, they can develop specialized menus to meet specific consumer needs without the overhead costs of traditional brick-and-mortar establishments.
- Food Delivery Platforms: Cloud kitchens act as strategic partners for food delivery platforms like Uber Eats, DoorDash, and Grubhub. These platforms can collaborate with cloud kitchen operators to expand their offerings, improve delivery speed, and optimize logistics, ultimately creating consumers with a broad range of food options & quick delivery times.
- Catering Services: Cloud kitchens provide a scalable solution for meeting services, allowing them to accommodate changes in demand and seasonal variations without the constraints of a fixed physical space. Caterers can use cloud kitchens to prepare large quantities of food efficiently, maintain quality standards, and complete orders for events ranging from corporate gatherings to weddings.
- Brick-and-Mortar Restaurants Expansion: Established restaurant chains can use cloud kitchens to expand their global reach & test new markets with low risk. By establishing a presence in different neighborhoods or cities through cloud kitchens, they can calculate demand, build brand awareness, and look into the continuity of establishing permanent brick-and-mortar locations in those areas, which allows for flexibility in expansion strategies while optimizing operational costs.
Market Dynamic
The growing online food delivery platforms in Europe, like Deliveroo and Uber Eats, have fueled a growth in demand for delivery services. Dark kitchens, developed exclusively for preparing food for delivery, provide restaurants with a low-cost solution to meet this demand without the expenses of traditional dine-in spaces.
By looking solely at delivery, dark kitchens streamline operations & significantly reduce overhead costs in comparison to traditional restaurants, in which restaurants save 50-70% on setup & operating expenses, mainly by eliminating the need for expensive dining areas & wait staff.
However, while dark kitchens provide cost advantages, they still face challenges. High real estate & operating costs in urban areas, alongside intense competition, can make profitability difficult, mainly for smaller brands. In addition, changing regulations specific to dark kitchens requires adherence to food safety & hygiene standards, adding to operational costs & potentially delaying expansion efforts.
Despite these challenges, the benefits of less overhead and better flexibility are driving the adoption of dark kitchens as a durable model for meeting the growing demand for online food delivery services in Europe.
Research Scope and Analysis
By Business Model
Fully equipped kitchens are expected to play an important role in the growth of the European dark kitchens market by providing ready-to-operate solutions for entrepreneurs and restaurant operators looking to enter the delivery-only food service sector.
These kitchens are installed with all the necessary cooking appliances, storage facilities, and sanitation infrastructure, removing the need for high upfront investments in equipment & setup costs, which allows businesses to quickly establish their operations & aim to deliver high-quality food to customers without the load of managing kitchen logistics.
In addition, these kitchens provide flexibility and scalability, making businesses adjust their production capacity according to the need for fluctuations and scale up their operations rapidly as they grow. As a result, they are instrumental in low barriers to entry and accelerating the expansion of the dark kitchens market across Europe.
By Type
Independent cloud kitchens are predicted to have a significant role in driving the growth of the European cloud kitchens market throughout the forecasted period by offering a flexible and low-cost solution for food delivery businesses.
These separate facilities provide entrepreneurs and established restaurant brands with the infrastructure and support required to operate delivery-only kitchens without the restrictions of traditional brick-and-mortar establishments.
Independent cloud kitchens allow businesses to improve their operations, reduce overhead costs, and focus mainly on meeting the growing demand for online food delivery services. By providing customizable spaces equipped with modern kitchen facilities and technology, independent
cloud kitchens use businesses to scale their operations efficiently, enter new markets quickly, and look at diverse culinary concepts to meet changing consumer preferences. As a result, they are useful in fueling innovation and driving the expansion of the cloud kitchens market throughout Europe.
By Offering
The food delivery sector is anticipated to have a major role in driving the growth of the European dark Kitchens market while having a major revenue share in 2024 by creating a high demand for delivery-centric dining options. As online food delivery platforms gain popularity among consumers across Europe, there is a relative increase in the need for efficient and affordable food preparation facilities.
Dark kitchens, also known as ghost kitchens or cloud kitchens, act as strategic partners for food delivery services, allowing restaurants and virtual brands to meet this demand without the high costs associated with traditional dine-in establishments. By focusing mainly on delivery operations, dark kitchens smoothen processes, optimize resources, and meet the changing preferences of urban consumers, thus driving the growth of the dark kitchens market all over Europe.
By Nature of Kitchen
Franchised cloud kitchens are expected to play an important role in supporting the growth of the Europe Cloud Kitchens market in the coming years by having established brand recognition & operational expertise to expand delivery-only dining options across the region.
With franchised models, larger restaurant chains can quickly scale their presence in many locations without the need for high capital investments or logistical complexities. Franchisees benefit from the approach to proven business models, standardized processes, and marketing support, allowing them to capitalize on the burgeoning demand for online food delivery services.
By having the franchising model, cloud kitchen operators can get into new markets easily, meet diverse consumer preferences, and drive overall market growth by providing a variety of cuisine options through recognizable brands, thereby shaping the path of the cloud kitchen market in Europe.
The Europe Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Report is segmented on the basis of the following:
By Business Model
- Fully Equipped Kitchens
- Semi-Equipped Kitchens
- Bring Your Own Kitchen
- Kitchen as a Service
- Order Management & Delivery
By Type
- Independent Cloud Kitchen
- Commissary/Shared Kitchen
- Kitchen PODs
- Food Trucks
- Incubator Kitchens
- Others (Mobile Kitchens, Kiosk)
By Offering
- Food Preparation
- Order Management
- Food Delivery
- Marketing
- Data Analytics
- Others (Packaging, Inventory Management)
By Nature of Kitchen
- Franchised Cloud Kitchen
- Standalone Cloud Kitchen
- Chain Cloud Kitchen
- Virtual Restaurant
European Country Analysis
Various European countries are expected to play a major role in driving the growth of the dark kitchen market across the continent. With the growing popularity of online food delivery services like Deliveroo and Just Eat, consumers in Europe are adapting to the convenience and variety provided by these platforms, creating a significant demand for delivery-only food options.
Countries like the UK, Germany, France, and Spain are expected to be leading this trend, highlighting major investments & expansions in the dark kitchen sector. Further, growth in urbanization rates, along with busy lifestyles and a preference for convenience among working professionals and students, fuel the need for delivery-centric dining solutions.
Also, regulatory frameworks in European countries often support innovative business models like dark kitchens, motivating entrepreneurs and established restaurant chains to explore this low-cost approach to food delivery.
By European Countries
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Competitive Landscape
The competitive landscape of the European Dark Kitchens market consists of a mix of independent operators, franchised models, and food delivery platforms getting into the cloud kitchen space. While independent cloud kitchens provide flexibility and customization, franchised models use established brand recognition. Further, food delivery platforms are also investing highly in or partnering with dark kitchens to expand their delivery offerings and market reach.
Some of the prominent players in the Europe Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market are:
- Uber Eats
- Kitopi
- Deliveroo
- Kitchen United
- Kitchen Hub
- REEF Technology
- DoorDash
- Karma Kitchen
- Travis Kalanick
- Other Key Players
Recent Developments
- In November 2023, Fork N Knife unveiled that the company raised USD 800,000 in seed funding from a group of angel investors and institutions outside the Middle East, which will allow the company to continue its mission of advancing the food tech sector with its innovative “Cooking As A Service” (CAAS) model, and enable restaurant and food concept developers to scale their businesses without any upfront investment, as the company also aims to increase its presence to the European and African markets by the end of 2023.
- In October 2023, Karma Kitchen launched its latest site, a 20,000 sq ft location in Lower Sydenham, South East London, which is the fifth site for Karma Kitchen, as it expands its operations across London and the rest of the UK. With around 40 individual units in the building, the new site is customized for catering and manufacturing-led Central Production Units (CPUs), developed to assist many restaurants, caterers, and food production and event companies.
- In April 2022, Growth Kitchen announced GBP 3 million in seed funding from a group of strategic investors led by PactVC, which is assisting Growth Kitchen to continue to crack the delivery kitchen model, where restaurants can expand like a SaaS company while remaining the exclusive owner of their business. By utilizing technology & data science, restaurant brands can grow from a few kitchens to 100s of strategic and sustainable, high-volume locations across Europe.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 5.3 Bn |
| Forecast Value (2033) |
USD 26.2 Bn |
| CAGR (2023-2032) |
19.5% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Business Model (Fully Equipped Kitchens, Semi-Equipped Kitchens, Bring Your Own Kitchen, Kitchen as a Service, and Order Management & Delivery), By Type (Independent Cloud Kitchen, Commissary/Shared Kitchen, Kitchen PODs, Food Trucks, Incubator Kitchens, and Others (Mobile Kitchens, Kiosk)), By Offering (Food Preparation, Order Management, Food Delivery, Marketing, Data Analytics, and Others (Packaging, Inventory Management))By Nature of Kitchen (Franchised Cloud Kitchen, Standalone Cloud Kitchen, Chain Cloud Kitchen, and Virtual Restaurant) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Uber Eats, Kitopi, Deliveroo, Kitchen United, Kitchen Hub, REEF Technology, DoorDash, Karma Kitchen, Travis Kalanick, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |