China Cracks Down on Ghost Kitchens in Food Delivery Industry
Saturday, 2026/06/06158 words2 minutes2711 reads
Chinese authorities are targeting "ghost kitchens" - restaurants that exist only on delivery apps but have no physical stores. These operations outsource orders to third-party vendors who fulfill them at lower costs, allowing merchants to reduce prices and increase profits.
Officials have discovered thousands of these ghost kitchens across China, raising serious food safety concerns. The investigation began after a Beijing customer complained about a cake with inedible flowers. Authorities found the cake chain listed 380 locations online but had no actual stores and used forged business licenses.
The investigation revealed that orders were transferred to different platforms and outsourced to the lowest bidder. Officials found 3.6 million cake orders and 67,000 ghost shops across seven major delivery apps.
Starting this week, apps must verify restaurants' licenses and addresses. Merchants must ensure their online listings match their physical businesses. Some cities are now installing transparent kitchens with live broadcasting, allowing customers to watch food preparation in real time.
