Ghost Kitchens And The Digitalization Of Indonesia’s Urban Informal Economy
DOI:
https://doi.org/10.58229/jcsam.v3i1.295Keywords:
Ghost Kitchens, Urban Informal Economy, Platform Dependency, Gig Economy, Digital Food EntrepreneurshipAbstract
Ghost kitchens have emerged as a disruptive force in Indonesia’s urban food economy, driven by digitalization, platform-based business models, and changing consumer behaviour. By eliminating the need for physical storefronts, they enable small entrepreneurs to reduce operational costs and access a broader market through food delivery platforms like GoFood, GrabFood, and ShopeeFood. However, their reliance on these platforms creates new economic dependencies, as algorithm-driven visibility and commission fees significantly impact profitability. Additionally, the rise of ghost kitchens intensifies market competition, particularly between independent operators and corporate-backed cloud kitchens that dominate rankings and resources. This study employs a qualitative multiple-case study approach to examine the economic and regulatory implications of ghost kitchens, including their impact on traditional food vendors, gig workers, and urban policies. Findings reveal that while ghost kitchens increase business accessibility, they also contribute to labour precarity within the gig economy, as food delivery workers face unstable incomes and high operational costs. The study underscores the need for adaptive regulatory frameworks, including fair taxation, food safety measures, and platform accountability to ensure equitable market participation. As ghost kitchens continue to evolve, proactive policies are required to balance innovation with sustainability, ensuring long-term benefits for entrepreneurs, workers, and consumers in Indonesia’s digital food ecosystem.
References
Ahmad, I., Khan, T., Khan, S., Sharif, M. N., & Waqar, M. (2022). Bibliometric Analysis of the Digitalized Economy: A Systematic Review. Journal of Social Sciences Review, 2(4), 369–376. https://doi.org/10.54183/jssr.v2i4.111
Arsil, P., Brindal, M., Sularso, K. E., & Mulyani, A. (2018). Determinants of Consumers’ Preferences for Local Food: A Comparison Study From Urban and Rural Areas in Indonesia. Journal of Business & Retail Management Research, 13(02). https://doi.org/10.24052/jbrmr/v13is02/art-16
Ashton, M., Tuomi, A., & Backman, P. (2022). Ghost Production: Applying the Servuction Model to Establish a Typology and Propose a Research Agenda for on-Demand Restaurant Food Delivery. Journal of Hospitality and Tourism Insights, 6(5), 1730–1754. https://doi.org/10.1108/jhti-04-2022-0134
Butorina, O., & Starodumova, Y. (2021). Monetary and Informational Form of Capital as the Basis of Investment Support for the Inter-Phase Transition to an Innovative Economy. SHS Web of Conferences, 116, 28. https://doi.org/10.1051/shsconf/202111600028
Charina, A., Kusumo, R. A. B., & Hapsari, H. (2024). The Role of Empowerment in Improving the Performance of Food-Based Informal Industries in Bandung Regency, West Java, Indonesia. Journal of Ecohumanism, 3(8). https://doi.org/10.62754/joe.v3i8.4951
Dai, X., & Wu, L. (2023). The Impact of Capitalist Profit-Seeking Behavior by Online Food Delivery Platforms on Food Safety Risks and Government Regulation Strategies. Humanities and Social Sciences Communications, 10(1). https://doi.org/10.1057/s41599-023-01618-w
DesRivières, C. P. (2019). Uncovering Hidden Urban Bounty: A Case Study of Hidden Harvest. Canadian Food Studies / La Revue Canadienne Des Études Sur L Alimentation, 6(3), 18–32. https://doi.org/10.15353/cfs-rcea.v6i3.354
Fridayani, H. D., Iqbal, M., & Atmojo, M. E. (2021). Cloud Kitchen: Strategy for Indonesian Culinary Business (SMEs) Growth During and Post Pandemic Era. Management Research and Behavior Journal, 1(2), 41. https://doi.org/10.29103/mrbj.v1i2.5128
Giousmpasoglou, C., Ladkin, A., & Marinakou, E. (2023). Worker Exploitation in the Gig Economy: The Case of Dark Kitchens. Journal of Hospitality and Tourism Insights, 7(1), 414–435. https://doi.org/10.1108/jhti-10-2022-0477
Harini, P., Rohini, A., Selvanayaki, S., Prahadeeswaran, M., Selvi, R. P., & Shokila, C. (2025). A Systematic Literature Review of Cloud Kitchen. Plant Science Today. https://doi.org/10.14719/pst.6016
Hart, K. (1973). Informal Income Opportunities and Urban Employment in Ghana. The Journal of Modern African Studies, 11(1), 61–89. http://www.jstor.org/stable/159873
Ilchenko, S. M. (2021). Research of the Factors and Conditions for Development of the Digital Economy in Russia. SHS Web of Conferences, 101, 2010. https://doi.org/10.1051/shsconf/202110102010
Jiang, H., Chen, Z., Liang, Y., Zhao, W., Liu, D., & Chen, Z. (2023). The Impact of Industrial Structure Upgrading and Digital Economy Integration on China’s Urban Carbon Emissions. Frontiers in Ecology and Evolution, 11. https://doi.org/10.3389/fevo.2023.1231855
Jones, S., Cain, L., & Deel, G. (2024). Virtual Restaurants and Ghost Kitchens: A New Opportunity. Journal of Hospitality & Tourism Cases, 12(3), 108–112. https://doi.org/10.1177/21649987241241948
Kuswardana, I., Nachrowi, N. D., Falianty, T. A., & Damayanti, A. (2021). The Effect of Knowledge Spillover on Productivity: Evidence From Manufacturing Industry in Indonesia. Cogent Economics & Finance, 9(1). https://doi.org/10.1080/23322039.2021.1923882
Mardiansjah, F. H., Rahayu, P., & Rukmana, D. (2021). New Patterns of Urbanization in Indonesia: Emergence of Non-Statutory Towns and New Extended Urban Regions. Environment and Urbanization Asia, 12(1), 11–26. https://doi.org/10.1177/0975425321990384
Mottaeva, A., Khussainova, Z., & Gordeyeva, Y. (2023). Impact of the Digital Economy on the Development of Economic Systems. E3s Web of Conferences, 381, 2011. https://doi.org/10.1051/e3sconf/202338102011
Na, Y. J., Baek, J. Y., Gwon, S. Y., & Yoon, K. S. (2024). Assessment of Hygiene Management Practices and Comparative Analysis of Regulatory Frameworks for Shared Kitchens Across Different Countries. Foods, 13(6), 918. https://doi.org/10.3390/foods13060918
Naeeni, S. K., & Nouhi, N. (2024). Regulatory Challenges and Opportunities in the Cannabis Industry. Isslp, 3(2), 32–38. https://doi.org/10.61838/kman.isslp.3.2.6
Nigro, C., Iannuzzi, E., Santo, N. d., & Sisto, R. (2022). Food Delivery, Ghost Kitchens and Virtual Restaurants: Temporary or Long-Lasting Game Changers? British Food Journal, 125(6), 2217–2233. https://doi.org/10.1108/bfj-02-2022-0095
Pitoyo, A. J., Aditya, B., & Amri, I. (2020). The Impacts of COVID-19 Pandemic to Informal Economic Sector in Indonesia: Theoretical and Empirical Comparison. E3s Web of Conferences, 200, 3014. https://doi.org/10.1051/e3sconf/202020003014
Prastiyo, S. E., Irham, I., Hardyastuti, S., & Jamhari. (2020). How Agriculture, Manufacture, and Urbanization Induced Carbon Emission? The Case of Indonesia. Environmental Science and Pollution Research, 27(33), 42092–42103. https://doi.org/10.1007/s11356-020-10148-w
Purwanto, E., Yulianto, A., Biasini, N., octavia, jelena, & Wati, V. O. (2023). Environmental Awareness and Intention to Reduce Food Waste Among Urban People. Iop Conference Series Earth and Environmental Science, 1168(1), 12048. https://doi.org/10.1088/1755-1315/1168/1/012048
Razak, S. S. A., Lo, Y. T., & Lau, T. C. (2022). Food Safety Legal Issues in Home-Based Food Business. International Journal of Academic Research in Business and Social Sciences, 12(1). https://doi.org/10.6007/ijarbss/v12-i1/12133
Saad, M., Sahrir, M. S., Abdullah, N. H. H., Jeinie, M. H., & Mokhtar, M. K. (2024). A Mapping Review of Challenges in Existing Technology-Based Occupational Safety Training in the Tourism and Hospitality Industry: Research Potential in Commercial Kitchens. International Journal of Occupational Safety and Health, 14(3), 412–423. https://doi.org/10.3126/ijosh.v14i3.52660
Sh. Ahmad, F., Rosli, N. T., & Quoquab, F. (2022). Environmental quality awareness, green trust, green self-efficacy and environmental attitude in influencing green purchase behaviour. International Journal of Ethics and Systems, 38(1), 68–90. https://doi.org/10.1108/IJOES-05-2020-0072
Shakeyev, S. S., Nevmatulina, K. ?., & Vladimirov, Z. (2021). Theoretical Foundations and Main Stages of the Transformation of the Digitalization of the Economy. Bulletin of the Karaganda University Economy Series, 104(4), 85–93. https://doi.org/10.31489/2021ec4/85-93
Shapiro, A. (2022). Platform Urbanism in a Pandemic: Dark Stores, Ghost Kitchens, and the Logistical-Urban Frontier. Journal of Consumer Culture, 23(1), 168–187. https://doi.org/10.1177/14695405211069983
Song, G. (2024). Can Digital Economy Foster Synergistic Increases in Green Innovation and Corporate Value? Evidence From China. Plos One, 19(6), e0304625. https://doi.org/10.1371/journal.pone.0304625
Telaumbanua, E., Harsono, I., & Soegiarto, I. (2024). Urbanisation in Indonesia: The Relationship Between Income Inequality, Urban Infrastructure, Access to Education, and Population Growth With Social Cohesion, Environmental Resilience, and Housing Quality to Look at Urbanisation in Indonesia. International Journal of Business Law and Education, 5(1), 603–614. https://doi.org/10.56442/ijble.v5i1.443
Vovchenko, N. G., ????????, ?. ?., Orobinskiy, A. S., & Filippov, Y. M. (2017). Competitive Advantages of Financial Transactions on the Basis of the Blockchain Technology in Digital Economy. European Research Studies Journal, XX(Issue 3B), 193–212. https://doi.org/10.35808/ersj/778
Widodo, B. (2023). Movement of Urban Vacant Land Use as an Effort in Keeping the Food Security in Surakarta During the Pandemic. Hong Kong Journal of Social Sciences, 60(No. 60 Autumn/Winter 2022). https://doi.org/10.55463/hkjss.issn.1021-3619.60.71
Zhao, K., Yang, J., & Wu, W. (2023). Impacts of Digital Economy on Urban Entrepreneurial Competencies: A Spatial and Nonlinear Perspective. Sustainability, 15(10), 7900. https://doi.org/10.3390/su15107900
