Are Food Delivery Apps and Dark Kitchens a Threat to Brick-and-Mortar Establishments?

As food delivery apps and dark kitchens rise, there’s a concern that brick-and-mortar establishments might not stand the heat. Are they really a threat?

Are Food Delivery Apps and Dark Kitchens a Threat to Brick-and-Mortar Establishments?

In Canada alone, just over 5 million food delivery apps were downloaded last year, with the most popular options being Uber Eats and DoorDash. Apps like these have been growing in popularity since the rise of smartphones and the increasing demand for convenience and self-dining throughout the pandemic in 2020 and beyond. 

We’ve also seen an influx of “dark kitchens”, which are commercial cooking spaces set up exclusively to prepare food for delivery or takeout. The world of dining has indeed been changing, but what exactly does that mean for brick-and-mortar establishments? Is there a chance that the rise of takeout services will cause the fall of traditional sit-down restaurants? To understand that, let’s first look at how a digital scene can affect a broader traditional industry.

The Implications of the Digital Age

Purely digital industries have been growing rapidly since the rise of smartphones, with the biggest influencer being the arrival of the iPhone in 2007. Since then, mobile technology has transformed the way we access services, from food delivery to shopping and entertainment. Even though 2007 feels like a lifetime ago, it’s still hard to tell whether this means the gradual decline of brick-and-mortar establishments that have a digital counterpart. 

Generally speaking, online equivalents, in-person experiences, and brick-and-mortar businesses are finding a way to co-exist. Online shopping and in-person shopping co-exist in parallel, and most of us would agree that they each offer their own distinct value. Online music events and in-person events are another example of two supposedly rivalled entities that operate in parallel. 

The same could be true for the food industry. Although food delivery apps and dark kitchens serve great food for snacking or big meals for special evenings in, that doesn’t necessarily mean they’re direct rivals to traditional brick-and-mortar establishments.

Are Food Delivery Apps and Dark Kitchens Really a Threat?

The thing that traditional sit-down restaurants have in common with casinos or any other brick-and-mortar establishments is that they offer a unique, in-person experience that cannot be replicated online. 

As the world becomes more digitalized, this experience is becoming even more sought after, with people wanting to put down their phones and absorb themselves into an authentic ambience complete with a social connection and personal service that feels special. Apps like SkipTheDishes or dark kitchens are beloved in Canada for their speed, but people don’t go to restaurants because they want good food quickly. They go to restaurants because they want to enjoy an experience, whether it’s to celebrate occasions, meet friends and family, or simply unwind in a setting that stimulates their senses beyond just taste. 

Think of it like going to a cinema. In 2025, streaming services have made it easier than ever to watch movies from the comfort of your home, with vast libraries available at your fingertips and new features coming out almost immediately after their initial cinema release. Despite this, people still flock to the theatres. One of the biggest box office hits last year, for example, was Deadpool & Wolverine, which grossed over $1,338,073,645 worldwide. Many other box office hits grossed more than a billion dollars, and a big reason for this is that people enjoy the experience of going to the cinema, being sociable, and immersing themselves in a communal event. 

The same is true for restaurants. Even though you can get food delivered to your house in just a few minutes, that special, human experience is not being replicated. In 2025, the Canadian restaurant industry is expected to surpass $50 billion, with a 2.9% increase in 2024 alone. This proves just how much the Canadian people – and people across the world – appreciate the idea of dining. Although food delivery apps and dark kitchens might appeal to the masses in certain situations, in-person dining will always be popular.