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 | GREATER LOS ANGELES MARKETFLASH |  |
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 | Ghost Kitchens Are Breathing New Life Into LA's Restaurant Scene |
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Ghost Kitchens were one of the most active retail industries during the pandemic, leading to a rapid spread of them across the GLA region. |
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Source: CBRE Research, 2021. |
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 | With dine-in options unavailable most of last year due to social distancing guidelines, many restaurant goers turned to online ordering as an alternative. In 2020, over 111 million people used an online ordering app—a 17% increase from the year prior.¹ Tech companies and app makers that help facilitate online ordering, such as Doordash, Uber Eats, Postmates, are well positioned to reap the benefits of the shift in consumer habits. Online ordering from these apps totaled $26.5 billion in 2020—an 18% jump from the year before—and is projected to climb another 62% by 2025.²
As consumers become more comfortable with online food ordering, the share of Ghost Kitchens is expected to climb. Pre-pandemic, Ghost Kitchens were expected to account for 10% to 15% of the market share by 2025, according to Statista. But due to increased consumer adoption of online ordering, the market share is now expected to climb to 20-25%. |  |
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Growth for Ghost Kitchens was expected to be moderate--but COVID-19 changed all that with market share expectation for the segment now at 21% of the U.S. restaurant market by 2025. |
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(1) Data aggregated and sourced by Business Apps, Statista, McKinsey, and Morgan Stanley.
(2) Data aggregated and sourced by Business Apps, Research & Markets, IMARC Group.
Source: Statista; CBRE Research, 2021. |
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In just a short amount of time, Ghost Kitchens have diversified beyond their commercial kitchen roots. |
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Source: CBRE Research, 2021. |
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Though small in footprint, Ghost Kitchens have outpaced most other established retailers in adding new space between 2020 and 2021. |
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(3) Based on available data. Size is approximate.
Source: CoStar; CBRE Research, 2021. |
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