Chinese authorities are intensifying their crackdown on "ghost kitchens," which are food vendors listed on delivery apps without physical storefronts. This new initiative mandates that food delivery platforms verify the licenses and operating addresses of restaurants,a move aimed at addressing growing food safety concerns.
The scrutiny of these kitchens escalated after a complaint in Beijing last year regarding a poorly made cake. The customer discovered that the cake chain he ordered from claimed to have nearly 380 locations on e-commerce platforms but operated without a single physical store. Investigations revealed that the business used forged licenses and outsourced cake production to third-party vendors through an order-transfer platform,where the lowest bids were accepted.
Authorities uncovered a staggering 3.6 million cake orders processed through two such platforms. They also identified 67,000 ghost kitchens across seven major delivery services,which together formed an illegal supply chain through collusion. Reports indicate that food delivery platforms were complicit in these operations,with some staff expressing concerns that stricter reviews could drive merchants to rival platforms.
The competition within China's food delivery sector has reached alarming levels, prompting government intervention . Last year, a price war among major delivery apps led to warnings from officials about dangers of unsustainable practices. Delivery riders, often underpaid and overworked, face immense pressure to meet tight deadlines .
In response to the ongoing crackdown, some merchants are taking proactive measures to reassure consumers about food safety . In Hangzhou,over 20 takeout stalls have implemented "transparent kitchens," equipped with live broadcasting features that allow customers to observe food preparation in real time. This initiative aims to build trust and enhance accountability among vendors.
Additionally,authorities in Anhui province recently signed a food safety agreement with major platforms like Meituan,Taobao,and JD.com. This agreement includes use of artificial intelligence to monitor kitchen operations and incentivizes delivery riders to report illegal restaurant activities.
The State Administration for Market Regulation has already imposed fines totaling 3.6 billion yuan (approximately $530 million) on seven e-commerce platforms,primarily related to ghost deliveries. As the campaign against ghost kitchens continues,the focus remains on ensuring that food safety standards are upheld in a fiercely competitive industry.
