Dive Brief:

• DoorDash Kitchens, the delivery company’s shared kitchen concept, has expanded to Brooklyn, DoorDash announced Monday. The company partnered with New York City-based shared kitchen concept Nimbus to provide delivery from Domodomo, Kings Co. Imperial, Pies ‘n’ Thighs, Moonbowls and Little Caesars.
• The brick-and-mortar location also features dine-in with seating for 20 people from 7 a.m. to 10 p.m., and late-night takeout from 10 p.m. to 11 p.m. The dine-in area is a first for DoorDash Kitchens, according to a press release.
• DoorDash Kitchens debuted in 2019 in Redwood City, California, later opening a location in North Hollywood, according to the release. The concept also plans to reopen a full-service kitchen in San Jose, California.

Dive Insight:

Planting its flag on the East Coast indicates DoorDash may be ramping up its shared kitchen concept. It also gives DoorDash another way to diversify its offerings while supporting its restaurant partners.

“New York is one of the many hubs for noteworthy dining experiences and we’re proud to bring DoorDash Kitchens to Brooklyn in partnership with Nimbus, adding even more options for food-lovers to choose from in their neighborhood,” Ruth Isenstadt, senior director of DoorDash Kitchens, said in a release.

This location’s dine-in feature fits the city’s robust restaurant scene and could draw in customers looking to try concepts like Moonbowls, which appears to be making its Brooklyn debut with this location. DoorDash could also entice group diners looking for a diversified meal, as the shared kitchen offers vegetarian options from Moonbowls alongside southern fare from Pies ‘n’ Thighs and Little Caesars’ pizza.

In addition to the five initial concepts, the space features beverages from Birch Coffee, pastries from Kado Patisri and items from Milk Bar, providing an opportunity for check add-ons for its restaurant partners. Further, providing a new delivery-focused location could expose new customers to Little Caesars’ menu as the pizza chain looks to expand throughout the New York City market, and expand consumers' access to the other four concepts.

New York City is a competitive market for the burgeoning ghost kitchen category, as it is both one of the busiest markets for restaurants and one of the most expensive commercial real estate markets. Ghost kitchens require lower capital to operate, which is a major driver of the category’s growth.

Partnering with New York City-based Nimbus, which opened in early 2021, will provide DoorDash with local expertise and potentially even affinity. One of Nimbus’ objectives is to provide more access to ghost kitchens for next generation chefs and restaurants. For its part, Nimbus will manage the real estate, support kitchen operations and run community events, according to Camilla Opperman, Nimbus co-founder and CEO. 

Nimbus will likely benefit from the partnership, leveraging DoorDash’s robust infrastructure and brand equity. 

This location also positions DoorDash squarely in a traditionally strong market for Grubhub, as the two companies were tied in market share in New York City last year, according to the Wall Street Journal. Nationally, Grubhub has lost a significant market share, and may be sold by parent company Just Eat Takeaway. As of March, DoorDash commanded a 59% share of delivery sales, according to Bloomberg Second Measure — more than quadrupling Grubhub’s 14%.