ghost kitchens

JD.com launched Seven Fresh Kitchen in Beijing, a new approach to food delivery amid intense market competition. It licenses signature dishes from established restaurants, handling ingredient sourcing, preparation, and delivery. This aims to address consumer concerns over “ghost kitchens” by providing transparent kitchens and focusing on quality. By partnering with restaurants and ensuring their profitability, JD.com leverages its supply chain and brand reputation to offer reliable, high-quality takeout, potentially changing the dynamics of the online food market. Initial response indicates strong consumer demand.

Major food delivery platforms face systemic exploitation by shadowy brokers enabling unlicensed “phantom kitchens” to operate as legitimate chains, despite technological upgrades and subsidy-driven market competition. Third-party intermediaries charge fees to fraudulently register residential kitchens using fabricated licenses and brand affiliations, evading audits through master account loopholes. Operators append established brands with location tags while avoiding direct oversight, with brokers offering turnkey solutions including fake kitchen videos for platform verification. While claims of operational stability prevail absent major incidents, consumers remain unaware their orders originate from uninspected home kitchens. This gray-market ecosystem highlights vulnerabilities in platform governance and food safety controls.