The Hive & CloudKitchens
Meet Catherine and Kristin: Co-founders of The Hive—a cozy bakery born in Hoboken, NJ. With the help of CloudKitchens’ commercial kitchens, they scaled from a 100 sq. ft. basement to nationwide shipping through Gold Belly—transforming their side project into a booming business.
Baking Big: How The Hive Went National With CloudKitchens
“We knew that opening our Jersey City location and getting shipping off the ground wouldn’t be possible with the capacity we had in our basement kitchen… We were excited, but we needed a solution—fast.”
— Catherine, The Hive’s co-founder.
When The Hive's 100-square-foot kitchen couldn’t handle the cinnamon roll craze, they knew it was time to scale. Fast. Their signature cinnamon rolls quickly gained a local following—until a celebrity shoutout from Blake Lively and Ryan Reynolds propelled them into the national spotlight.
Suddenly, The Hive had more opportunities than they could handle. They needed extra space, fewer logistical headaches, and the ability to scale fast.
The Challenge
- Space Constraints: Their 100-square-foot basement kitchen couldn’t keep up with skyrocketing demand. Even ingredients like butter, milk, and cinnamon simply overwhelmed their limited storage.
- Operational Hurdles: Permitting delays at a planned Jersey City location stalled expansion.
- Big Growth Aspirations: A partnership with Gold Belly promised nationwide shipping—but The Hive lacked the capacity to fulfill it.
“The kitchen was essentially move-in ready. We didn’t have to manage a build-out, which saved us a couple hundred thousand dollars.”
— Kristin, The Hive’s co-founder.
The Solution
CloudKitchens offered the perfect solution at just the right time. And after just a quick visit to the Union City facility, the decision became clear:
- Move-In Ready: No expensive build-out meant they could start almost immediately.
- Prime Location: Proximity to Jersey City and Hoboken offered easy distribution and staff access.
- Room to Grow: Flexible kitchen and storage space let them expand at their own pace.
- Built-In Support: An on-site team provided logistical know-how and a supportive community vibe.
“Plus, having a supportive team on-site made the whole process less overwhelming.”
— Catherine, The Hive’s co-founder.
The Results
- Nationwide Shipping Launch: The Hive successfully fulfilled surging orders and shipped nationwide through Gold Belly.
- Expanded Storage Capacity: By leveraging extra storage within their current space, The Hive efficiently scaled production to meet growing demand—without the need for a larger kitchen.
- Optimized Operations: With flexible space and equipment, they were able to fine-tune workflows and streamline production.
Having the walk-in fridge and large freezer space was a game-changer. These are massive investments, and to have them already in place was huge.”
— Kristin, The Hive’s co-founder.
Looking Ahead
With CloudKitchens’ flexible infrastructure, The Hive can continue scaling without huge overhead. Currently, they’re even planning for additional upgrades and scouting new locations—all while keeping the nostalgic charm of their famous cinnamon rolls.
“CloudKitchens allowed us to scale when we needed to, without the huge overheads of owning our own space. It’s been a fantastic place to grow our business.”
— The Hive Team
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Questions?
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What is a ghost kitchen?
Ghost kitchens, also known as dark kitchens or virtual kitchens, are commercial kitchens built for food delivery. They’re located within the delivery radius of a high volume of online customers, rather than high foot traffic areas. With ghost kitchens, there’s no physical storefront or dining area, so you only need a few back-of-house staff members to fulfill online orders.
How does a ghost kitchen work?
In a ghost kitchen, your restaurant is focused on delivery rather than dine-in. When eaters order your food online, you’ll prepare it from your ghost kitchen, and hand it off to a fulfillment team to get the order over to the right delivery driver. This gives restaurateurs a low cost, high efficiency model to get the most out of delivery.
Are ghost kitchens profitable?
Yes. Ghost kitchens allow restaurateurs to increase profitability by maintaining the essential elements of a restaurant while cutting costs on labor, overhead, and wasted food while reaching a higher volume of customers ordering online. Plus, you can run multiple virtual brands out of a single ghost kitchen to increase revenue without the extra overhead.
Why are ghost kitchens so popular?
Ghost kitchens are rising in popularity because they’re a lower cost alternative to operating a traditional restaurant. They’re also focused on delivery, which has grown 300% faster than dine-in since 2014. That means restaurateurs are using ghost kitchens to future-proof their business and accelerate growth.
How does a ghost kitchen help your restaurant grow?
Ghost kitchens help restaurateurs grow their business by doing delivery right. The way we dine has changed, and ghost kitchens allow restaurant operators to capture food delivery demand without sacrificing their bottom line. They’re also a great way to expand to new markets without spending time and money on a traditional restaurant buildout. You can easily expand your restaurant brand to different cities across the country such as Los Angeles or New York.
How much do ghost kitchens cost?
The cost of ghost kitchens varies by market, space, and services. Compared to a traditional restaurant, they’re a much lower cost alternative on both upfront capital and ongoing operating costs. You can get started in a ghost kitchen with as little as $30K, instead of $1M+ for brick and mortar buildout.
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