Fast food chain Wendy's (WEN  ) recently announced that it intends to open up 700 ghost kitchens throughout the United States, United Kingdom, and Canada by the year 2025, and will collaborate with the company, Reef Technology to do so.

Ghost kitchens, which are also referred to as virtual, cloud, or dark kitchens, typically work through third-party delivery apps such as DoorDash (DASH  ). Various businesses state that they assist restaurants in reducing expenses by utilizing lesser amounts of labor and existing in less preferable places, such as in parking lots.

Prior to creating this particular development plan, Wendy's and Reef operated approximately eight ghost kitchens in Canada. Both Reef and Wendy's intend to open up approximately 50 ghost kitchens throughout this year.

Todd Penegor, Wendy's CEO, informed analysts this past Wednesday that the United States has observed digital sales increase by more than 10% throughout the second quarter. "If you look at the economics, it's early to tell what we can do from sales out of each of those vessels, but we're expecting the sales in the range of $500,000 to $1 million per unit," Penegor said in a statement.

Ghost kitchens were created for the purpose of fulfilling an increasing expectation for deliveries, particularly throughout the COVID-19 pandemic season. The existence of a ghost kitchen has been around for several years now, but it has only more recently become popularized due to the escalating demand for deliveries.

There are other various reasons for the creation of ghost kitchens. Some of them include: the ability to achieve new customers; the ability to test new markets at inexpensive prices; fast set-up time; and the provision of streamlined menus. Reef and Wendy's purpose behind setting up ghost kitchens will surely attract new customers, particularly those who wish to experience faster delivery services.

Although the ghost kitchen experience may be quite different from that of a typical fast food restaurant, there are many benefits to having ghost kitchens, especially during the season of the pandemic. Overall, the experience of a ghost kitchen, though having been around for quite some time, will open up the eyes of those who have not yet been exposed to it, and surely enable them to further indulge in its benefits.