China has introduced new regulations requiring food delivery platforms to verify restaurant licences and operational addresses as authorities intensify efforts to clamp down on thousands of so-called “ghost kitchens” that have raised food safety concerns.
The term “ghost kitchens” refers to food vendors listed on delivery apps that operate without visible physical storefronts and have recently come under increased scrutiny for allegedly running without proper licensing.
Under rules that took effect on Monday, all listings on delivery platforms must correspond to verified physical premises, while vendors are also required to clearly indicate if they do not provide dine-in services.
The move marks the latest step in Beijing’s broader push to rein in its highly competitive food delivery sector.
Concerns over “ghost kitchens” escalated last year after a consumer complaint in Beijing involving a cake topped with inedible decorations purchased via a delivery app, according to state media reports.
Subsequent investigations found that the bakery chain involved had listed nearly 380 outlets across major platforms without operating any actual physical stores, and had allegedly used falsified business licences for its online listings.
Authorities further discovered that orders were being routed through an order-transfer system in which requests were allocated to third-party vendors based on the lowest bids.
State-run Xinhua reported that around 3.6 million cake orders were processed through two such intermediary platforms, while investigators also identified 67,000 “ghost shops” operating across seven major delivery apps. These networks, together with order-transfer systems, were described as forming an illicit supply chain involving coordinated collusion.
The report also suggested that delivery platforms were aware of such practices. One employee was quoted as saying, “If we’re too strict in our review, the merchants would go to other platforms.”
China’s food delivery industry has become increasingly competitive, prompting regulatory concern over aggressive pricing strategies and their wider social impact.
Last year, authorities warned against a damaging price war among major platforms, while delivery riders have also faced growing pressure amid tight deadlines and low pay.
In April, the State Administration for Market Regulation announced fines totaling 3.6 billion yuan ($530 million; £400 million) against seven e-commerce companies, including Taobao, JD.com, Meituan and Pinduoduo, largely linked to violations involving ghost kitchens.
As enforcement efforts continue, some merchants are introducing transparency measures to rebuild consumer trust. In Hangzhou, more than 20 food stalls have installed “transparent kitchens” with live-streaming systems allowing customers to monitor food preparation in real time.
Separately, authorities in Anhui province recently signed a food safety agreement with Meituan, Taobao and JD.com, which includes the use of artificial intelligence to monitor kitchen operations and incentive systems encouraging delivery workers to report illegal vendors.
