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Tue, 02 Jun 2026

Tue, 02 Jun 2026 China goes after 'ghost kitchens' to rein in cut-throat food delivery apps

The thousands of "ghost kitchens" - online shops that don't actually exist - have spooked Chinese consumers.

* China cracks down on "ghost kitchens" that don't exist but appear on food delivery apps
* Authorities found 67,000 "ghost shops" across 7 major food delivery apps and 3.6 million cake orders outsourced to third-party vendors
* New regulations require apps to verify restaurants' licenses and addresses, and merchants must ensure online listings match physical businesses
* Investigation began after a customer complained about an unsatisfactory cake with inedible flowers ordered from a non-existent restaurant
* Food delivery platforms were found to be complicit in the arrangements, prioritizing profits over food safety
* Authorities have fined e-commerce platforms a total of 3.6bn yuan ($530m) for deliveries from "ghost kitchens"
* Merchants are trying to assure consumers of food safety by installing "transparent kitchens" and partnering with authorities to monitor kitchens and reward whistleblowers