How CloudKitchens helps brands expand into new delivery markets in America

In a rapidly evolving food service industry, traditional expansion models are no longer the only way for restaurant brands to grow. Virtual Kitchens, also known as ghost kitchens, are revolutionizing how restaurants reach new markets — and CloudKitchens is at the forefront of this movement in the United States.

With the explosion in food delivery demand across the country, brands must rethink their infrastructure to stay competitive. From coast to coast, CloudKitchens provides the tools and infrastructure restaurants need to expand quickly, efficiently, and with far less overhead than brick-and-mortar locations.

In this comprehensive article, we’ll explore how CloudKitchens helps your delivery business expand in America by examining its model, benefits, and success stories, and by answering common questions!

What is the virtual or ghost  kitchen concept in the USA?

A virtual or ghost  kitchen is a commercial kitchen space optimized solely for food delivery and takeout. Unlike traditional restaurants, these facilities have no dine-in option, focusing entirely on preparing orders for online platforms like Uber Eats, DoorDash, and Grubhub.

CloudKitchens operates in key U.S. markets with strategically located kitchens in high-demand areas, reducing delivery times and increasing order volume potential. These spaces are shared by multiple restaurant brands, allowing operators to minimize real estate costs and maximize efficiency.

Why the delivery market in the U.S. is booming

The U.S. food delivery market is expected to reach $43 billion by 2025, driven by changing consumer preferences and the convenience economy. As people continue to favor on-demand meals and digital ordering, delivery-first models are becoming essential for growth.

CloudKitchens enables brands to tap into this trend by offering:

• Location-specific insights for market selection;
• Access to multiple delivery platforms;
• Data-driven support to refine menus and pricing.

How does CloudKitchens work?

CloudKitchens provides fully equipped commercial kitchen units in prime urban areas. Restaurants can lease these kitchens with flexible terms and begin operations in as little as a few weeks. It’s essential to know that our partners own and operate their own licensed equipment in one of our spaces.

Here’s how the process works:

1. Select a market: Choose from dozens of cities where CloudKitchens operates. We are in more than 400 locations!
2. Move in fast: CloudKitchens provides a ready-to-use kitchen with appliances, storage, and utilities.
3. Connect to delivery apps: Instantly integrate with major delivery platforms.
4. Launch multiple brands: Operate several virtual brands from a single kitchen.
5. Get operational support: Receive our support about staffing, packaging, and order logistics. 

This model drastically reduces the capital required to expand into new markets, making it a favorite among fast-growing restaurant chains, independent operators, and enterprise brands.

Key benefits of using CloudKitchens for delivery expansion

Restaurants that partner with CloudKitchens gain a number of strategic advantages:

1. Lower startup and operating costs

Opening a traditional restaurant can cost between $250,000 and $1 million. With CloudKitchens, brands can avoid expenses tied to dining spaces, front-of-house staff, and premium real estate, keeping startup costs much lower.

2. Faster market entry

Brands can open in a new city in just a few weeks versus the months or even years it takes to build out a physical location. This agility allows them to test new regions with less risk.

3. Scalable operations

Using one CloudKitchen location, a brand can run multiple delivery-only restaurant concepts, cross-utilize ingredients, and streamline prep processes, all while scaling nationally with minimal friction.

4. Access to data and analytics

CloudKitchens provides data on neighborhood demographics, delivery patterns, and menu performance, allowing brands to make smart, informed decisions about their offerings and locations.

5. Turnkey logistics and support

With a dedicated technical team that manages integration with your tech stack to work seamlessly with any delivery platforms to  fulfillment management, CloudKitchens offers solutions that help operators focus on what they do best — making great food.

Example of how brands use CloudKitchens to grow

Catherine and Kristin, co-founders of The Hive bakery in Hoboken, NJ, transformed their side project into a nationwide success with the help of CloudKitchens. Their signature cinnamon rolls gained local popularity, and a celebrity endorsement from Blake Lively and Ryan Reynolds propelled them into the national spotlight. Facing overwhelming demand, their 100-square-foot basement kitchen proved insufficient, and permitting delays hindered their planned expansion in Jersey City.​

CloudKitchens provided a timely solution:​

• Move-In Ready Facilities: Eliminated the need for costly build-outs, saving significant capital.
• Strategic Location: Proximity to Jersey City and Hoboken facilitated distribution and staffing.
• Scalable Infrastructure: Flexible kitchen and storage spaces allowed for efficient scaling.
• Operational Support: On-site teams offered logistical assistance and a supportive community.

With these advantages, The Hive launched nationwide shipping through Gold Belly, optimized their operations, and expanded storage capacity without needing a larger kitchen. They continue to plan for future upgrades and new locations, all while maintaining the nostalgic charm of their famous cinnamon rolls.

You can see more success cases, like Brady’s Bakery, Oh my Gogi, Redheart and much more!

Challenges CloudKitchens helps overcome

Expanding a food business comes with obstacles, including:

• High real estate and construction costs;
• Staffing and training inefficiencies;
• Complex delivery logistics;
• Brand dilution across markets.

CloudKitchens solves these with modular kitchens, in-house logistics solutions, shared staffing pools, and tech tools that ensure consistency.

Where CloudKitchens is growing in the U.S.

CloudKitchens is rapidly expanding in top U.S. markets, including:

• Los Angeles;
• New York City;
• Miami;
• Chicago;
• Dallas;
• Atlanta;
• Boston;
• San Francisco.

These high-demand urban areas provide access to dense customer bases and robust delivery networks, making them ideal for delivery-first concepts.

The future of delivery-first restaurant expansion

With delivery demand still on the rise and commercial real estate evolving, the delivery-first model will continue to gain traction. CloudKitchens stands at the forefront of this shift, helping brands grow quickly, minimize risk, and meet customers where they are: online.

Restaurants looking to capitalize on America’s booming delivery economy will find that cloud kitchens offer:

• Operational flexibility;
• Lower entry costs;
• Rapid growth potential;
• Enhanced customer reach.

Grow smarter with CloudKitchens

Whether you’re an emerging brand testing new markets or an established restaurant chain aiming to scale, CloudKitchens provides a proven path to successful delivery expansion in America.

Ready to unlock new markets and increase delivery profits? Partner with CloudKitchens now and take your restaurant business nationwide, without the overhead.

DISCLAIMER: This information is provided for general informational purposes only and the content does not constitute an endorsement. CloudKitchens does not warrant the accuracy or completeness of any information, text, images/graphics, links, or other content contained within the blog content. We recommend that you consult with financial, legal, and business professionals for advice specific to your situation.