Travis Kalanick’s CloudKitchens rents space to those who want to operate delivery-only restaurants. It's now facing lawsuits and allegations of operators leaving in droves
to physical altercations. In one extreme incident, the owners of a Houston restaurant sued the company after an employee of CloudKitchens, who worked running food between the restaurant and delivery drivers, allegedly punched, kicked, and scratched the owners in an altercation that apparently began over a card game. According to filings with the Harris County district court, the employee also vandalized the owners’ two vehicles, slashing all their tires and carving into the paint with a knife.
Part of CloudKitchens’ sales pitch is that it’s a lower-risk, lower-cost entree into the world of restaurant ownership. But operators told Insider that rent for each of these kitchens ranges from $3,500 to $10,000 per month, depending on location. CloudKitchens also takes a 3 percent cut from every single order, meaning that many owners found themselves unable to turn a profit even if they were able to overcome the safety and sanitation issues.
CloudKitchens isn’t the only ghost kitchen company to face legal woes in recent months. In May, Insider reported that. It’s also faced similar issues with sanitation and safety — a 2021 report from Restaurant Dive found that
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