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NYC Startup Creates Airbnb For Ghost Kitchens

It’s a tale of two kitchens according to founder Dan Unter, a former lawyer and restaurant owner of seven years. “If you have a ghost kitchen at $9k, maybe they’re taking a percentage of gross sales,” said Unter. “Then on the same block you have a hotel with a secondary kitchen, no real amenities, but it’s 500 sqft for $4,000 the economics speak to that. We are pro-operator.”

In addition to the high cost of providers like CloudKitchens, there’s also concerns of hygiene and social distancing. Whereas Kitch’s hosts can clearly delineate whose ingredients are whose after each shift, higher-density environments like CloudKitchens can pack as many as 30 kitchens under one roof and rent individual shelves in walk-in and freestanding refrigerators. While the company performs routine temperature checks on its tenants, the lack of traceability in common areas creates a potentially fragile environment for health code violations and Covid infections.

“Let’s face it, all these assets post-Covid– there’s going to be so much availability,” said Unter. “Our goal is to drive revenue to those places and drive demand through our market. I can help you open a restaurant with security… you’re not leveraged– that’s the biggest issue with the industry and it has been since 100 years ago. Food businesses die quickly and are stressful because of capitalization. We try to remove that.”

Supply & Demand: Dumpling Galaxy was able to launch a delivery-only version of its closed brick and mortar restaurant in Manhattan while Tonchin was able to open a delivery-only version of its Manhattan-based Japanese concept using a closed restaurant in Brooklyn. (Source: Google)

“My initial issue with all the ghost kitchens is that it’s all cannibalization,” he said. “If you have ten new players on a block, you now have 1/10 the opportunity. It’s a fight to the bottom.”

But at the end of the day, he recognizes that it’s up to the market to dictate what it values when it comes to delivery. More importantly, he has his eyes set on a larger mission: “If we’re going to disrupt anything it’s not the ghost kitchen model it’s the commercial brokerage model.”

** Special thanks to HNGRY member Curt McClusick for his food safety expertise.

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