CloudKitchens - Houston Galleria

Restaurants Are Jumping Ship From Uber Founder’s Ghost Kitchen | Eater

"Launched in 2016 as a low-cost way to convert warehouse space into delivery-and-pickup-only kitchens, this operation promised an easier, cheaper path into restaurant ownership but has drawn widespread complaints from operators. Reports say many sites lacked basic sanitary facilities (bathrooms and working sinks) and suffered technical glitches that made ordering difficult. Tenants describe persistent security and safety problems — from burglaries and arson to violent confrontations — including a reported incident in Houston where an on-site employee allegedly assaulted restaurant owners and vandalized their vehicles (slashing tires and scratching paint). Rent at these sites reportedly ranges from $3,500 to $10,000 per month depending on location, and the platform takes a 3 percent cut of every order, a combination many owners say made profitability unattainable even before accounting for the safety and sanitation issues. Despite these operator complaints and lawsuits, the company attracted large investments and large valuations in 2021, and many former tenants say they are now leaving the model in droves." - Amy McCarthy