Operations

DoorDash opens commissary kitchen

Adding fuel to the ghost restaurant movement, third-party deliverer DoorDash this month opened a commissary kitchen in Silicon Valley, enabling concepts to deliver food in that area with a lesser financial burden than adding a brick-and-mortar location.

A pizza restaurant operator from the Bay Area was the first to sign on for one of the commissary’s four kitchens, which total 2,000 square feet, according to Business Insider.

DoorDash will be the sole deliverer of the pizza concept’s food produced in the commissary, where rent for kitchen space is determined using a portion of gross sales, Business Insider says.

Despite much industry buzz, problems have beset a number of so-called ghost restaurants, with prominent players such as Maple and Sprig shutting their virtual doors earlier this year. Another, David Chang’s headless concept, Ando, recently transformed into a fast casual, with its CEO calling delivery-only concepts “not profitable” at this time.

Grubhub has no plans to follow its competitor into the commissary kitchen arena in the near future, Grubhub COO Stan Chia told Business Insider.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

The Red Lobster bankruptcy is a seminal moment for the restaurant business

The Bottom Line: The seafood chain’s bankruptcy declaration was not surprising after months of closures and Endless Shrimp recriminations. But that doesn’t make it any less notable.

Workforce

The White House has ideas about how all that AI on the Show floor should be used

Reality Check: President Biden issued a set of guidelines Thursday for protecting workers from the digital onslaught.

Financing

How Popeyes changed the chicken business

How did a once-struggling, regional bone-in chicken chain overtake KFC, the formerly dominant player in the U.S. market? With a fixation on sandwiches and many more new restaurants.

Trending

More from our partners