China Implements Stricter Regulations on 'Ghost Kitchens' in Food Delivery Sector

In a significant move to address growing food safety concerns, Chinese authorities have introduced new regulations requiring food delivery platforms to rigorously verify the licenses and physical addresses of restaurants. The crackdown targets thousands of "ghost kitchens"—takeaway operations that exist solely on digital platforms without any physical storefronts. Under the new rules, which came into force on Monday, listings on these apps must correspond to actual brick-and-mortar locations. Additionally, vendors are now mandated to clearly disclose if they do not offer dine-in services. This regulatory shift marks the latest attempt by the government to tame the highly competitive food delivery industry.

The focus on ghost kitchens intensified last year following a high-profile incident reported by state media. A man in Beijing filed a complaint with local authorities after receiving a cake topped with inedible flowers from a delivery app. Subsequent investigations revealed that the bakery chain involved had listed nearly 380 locations across major e-commerce sites, despite having no physical stores. Furthermore, the online shops were found to be using fraudulent business licenses.

Deeper probing uncovered that orders from these outlets were routed through order-transfer platforms, where contracts were awarded to third-party vendors offering the lowest prices. State news agency Xinhua reported that authorities identified 3.6 million cake orders processed through two such platforms. In total, 67,000 "ghost shops" were detected across seven major food delivery apps. These entities, in collusion with order-transfer sites, created an illegal supply chain. The report highlighted that delivery platforms were complicit in these practices. One staff member from a delivery app allegedly told officials that strict vetting would drive merchants to competitors, stating, "If we're too strict in our review, the merchants would go to other platforms."

The food delivery sector in China is defined by intense rivalry, a situation that has prompted government intervention. Last year, the State Council warned against a "race to the bottom" sparked by price wars among major apps. This cutthroat competition has disproportionately affected delivery riders, who face relentless pressure to meet tight deadlines for low wages. In April, the State Administration for Market Regulation imposed fines totaling 3.6 billion yuan ($530 million; £400 million) on seven e-commerce platforms, including Taobao, JD.com, Meituan, and Pinduoduo, primarily for facilitating ghost deliveries.

As the anti-ghost-kitchen campaign progresses, some merchants are proactively enhancing transparency to reassure customers. According to Xinhua, over 20 takeout stalls in the eastern city of Hangzhou have installed "transparent kitchens" equipped with live-streaming capabilities, enabling consumers to watch food preparation in real time. Meanwhile, in neighboring Anhui province, authorities recently signed a food safety agreement with Meituan, Taobao, and JD.com. The accord includes the deployment of AI models to monitor kitchen operations and offers incentives for delivery riders who report illegal restaurant activities.

Source: BBC News Generated at: 2026-06-02 05:56:37 UTC