China cracks down on 'ghost kitchens' in food delivery apps
Summary
China is tightening rules on food delivery apps to regulate "ghost kitchens," which are restaurants listed online but have no physical stores. New rules require apps to verify restaurant licenses and addresses, aiming to improve food safety and stop illegal operations.Key Facts
- "Ghost kitchens" are food vendors on delivery apps without real storefronts.
- New rules require food delivery apps to confirm restaurants’ licenses and actual locations.
- Vendors must state if they do not offer dine-in service.
- Authorities found a cake chain with 380 online locations but no physical stores, using fake licenses.
- Investigations revealed 67,000 ghost kitchens on seven major delivery platforms in China.
- Delivery platforms and order-transfer sites were accused of working together illegally.
- The government fined seven major e-commerce platforms 3.6 billion yuan ($530 million) mainly over ghost deliveries.
- Some merchants installed transparent kitchens with live video to assure customers of food safety.
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