Commissary Kitchen

Commissary Kitchen is a licensed commercial food production facility used to prep, store, and stage food before service. In the ghost kitchen context, "commissary" usually refers to one of two arrangements: a shared rental facility where multiple delivery-only operators produce out of a common kitchen (similar to a cloud kitchen, but typically lower-cost and with fewer amenities), or an operator's own central production kitchen feeding multiple satellite delivery sites.

The commissary model predates ghost kitchens by decades — food trucks, caterers, and bakeries have used commissary arrangements for years to comply with health-department requirements for licensed production space. Ghost kitchen operators have adopted the model as a lower-cost alternative to a full standalone buildout, particularly for early-stage operators validating a concept before committing to dedicated space.

Commissary economics are favorable for low-volume operators (under $30K monthly revenue) where the marginal cost of dedicated kitchen space exceeds the marginal value. Above that threshold, most operators move to a standalone kitchen or a cloud kitchen stall for better unit economics and operational control.

For financing, commissary-based operators face a different lender personality. Without a dedicated kitchen as collateral, lenders look at working-capital lines, equipment loans on operator-owned smallware, and revenue-based financing tied to platform statements. Equipment loans secured against commissary-resident equipment are rare because the equipment isn't installed in the operator's facility.