The Laws and Regulations You Need to Know Before Opening Your Ghost Kitchen

There’s never been more demand for on-the-go and delivery options
for restaurant customers – and that’s led to a race for optimal
solutions among establishments looking to keep pace.


One of the premier solutions for meeting these growing
expectations is the ghost kitchen, which empowers establishments
to cook orders specifically for to-go and delivery guests. These
kitchens don’t serve a traditional, physical dining space, but
are solely dedicated to the need of customers ordering either
themselves or through the variety of food delivery apps available
today.


“Ghost kitchens provide an opportunity to really expand a brand
or get a product in front of customers that they otherwise
couldn’t because of lower resources." -Brett Buterick


On this episode of MarketScale’s The Main Course, host and
industry expert Barbara Castiglia was joined by Brett Buterick,
Esq., to highlight the legal and regulatory environment
surrounding these ghost kitchens.


“Ghost kitchens provide an opportunity to really expand a brand
or get a product in front of customers that they otherwise
couldn’t because of lower resources,” Buterick said. However, the
concept is so popular that even big brands are getting into the
virtual kitchen model.


Buterick sees the idea taking off because of the impact of
technology. First is the acceptance and use of third-party
delivery apps like GrubHub and Uber Eats and second is the
increase in social media marketing that allows brands to develop
an online following.


From a legal perspective, starting a ghost kitchen begins with
entity formation before finding a space to operate and eventually
moving onto selling products and services. While creating the
business through an LLC is fairly straightforward, finding just
the right space can be challenging but is essential to creating a
sustainable business.


Buterick describes three models for working out of a space. “One
would be the classic model of a shared space with a pop-up in
another business’s environment. The second would be operating out
of a true commercial kitchen or a commissary. The third
possibility is a turnkey solution that’s going to look like a
combo kitchen. Things where you can actually put your brand into
another system.” He said.


How does a new brand enter this growing sector of the restaurant
industry? Buterick has all the insights and details on what it
takes to successfully launch a ghost kitchen business.