Virtual restaurants—commercial kitchens that operate through delivery services and do not have a physical dine-in space—are increasing due to the coronavirus pandemic, reports the Vertical IQ industry research platform in a recent “Coronavirus Update” for the restaurant industry. These operations may be extensions of existing brick-and-mortar restaurants or startups using rented kitchen space. The need to replace lost revenue combined with a greater emphasis on carryout and delivery is driving growth. Industry experts say that full-service operators that were already experimenting with off-premises options before the pandemic were best positioned to capitalize on the model.

Extra: A spin on this concept is the “ghost franchise,” such as MrBeast Burger, that has no physical locations—it contracts with local restaurants to make its burgers and fries, which are 100% delivery only (using third-party delivery apps).