What Are Ghost Kitchens, and Why Is Kroger Betting on Them?

It's the sort of press release headline most investors might breeze past, sounding more like a publicity piece than an explanation of a significant development. The fact that grocery chain Kroger (NYSE: KR) is partnering with food delivery name ClusterTruck to wade deeper into the ghost kitchen business, however, is no small matter.

As it turns out, the ghost kitchen industry is big, and it is expected to become enormous over the course of the next several years.

It's possible you've been a customer of one and not even realized it. Simply put, a ghost kitchen prepares food meant for delivery to a consumer on behalf of a restaurant. You place the order online, the restaurant passes the order along to off-site chefs, and about a half-hour later, that meal is at your door. They're also called virtual restaurants or dark kitchens, and they don't serve any sit-down customers of their own. Other actual restaurants are their customers.

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Source Fool.com