Impostor Restaurants Online are Eating Into the Business of Established Eateries; Here's How

Although online delivery has opened new avenues for restaurants to reach more consumers every day, it has also led to the rise of online impostor eateries. These fraudulent entities, masquerading as legitimate establishments, have surfaced across various digital platforms, eating into the business of independent restaurants. In a sector where it takes years to gain consumer confidence by maintaining taste and quality in addition to marketing, online knockoffs are creating confusion.

Las Vegas, known for its vibrant culinary scene, became a hotspot for this scam to be orchestrated. Over a dozen "imposter" restaurants emerged online, sporting names eerily similar to well-established dining spots. James Trees, owner of Esther's Kitchen, was taken aback when he stumbled upon an Uber Eats listing for "Esther's Italian Pasta Kitchen," since his establishment doesn't provide a delivery service. Expressing dismay, Trees voiced his concerns on social media, calling out Uber Eats for allowing such deceptive practices.

A local TV investigation traced the origins of these "not-really restaurants" to New York Bagel and Pizza Place, a venue implicated in the scheme. Despite claims of innocence and cessation of activities, suspicions lingered. Trees rebuked the explanation, asserting, "A ghost kitchen operates under strict guidelines, unlike this opportunistic venture peddling subpar fare at inflated prices."

The implications extend beyond Las Vegas, with similar scams unfolding in cities nationwide. Chicago witnessed a case where a fraudulent DoorDash account usurped the identity of Smoque BBQ, accepting orders and payments without fulfilling them. San Francisco encountered a wave of Instagram accounts posing as legitimate eateries, engaging in fraudulent activities such as soliciting followers and orchestrating negative review campaigns against genuine establishments.

Al Mancini, a prominent figure in the Las Vegas restaurant scene, expressed indignation, remarking, "Restaurants face enough challenges without contending with counterfeit operations and unwarranted online criticism." Imposters make things even more difficult for independent eateries already grappling with economic uncertainties and evolving consumer preferences.

In response to mounting pressure, industry stakeholders and regulatory bodies must collaborate to devise robust mechanisms for detecting and thwarting online impostor restaurants.

In a similar incident another establishment in Provo, Utah, found itself entangled in a web of online deception. Nico's Pizza, renowned for its authentic East Coast-style pizzas, became the latest victim of impostor activity on food delivery apps. Despite Nico's Pizza's steadfast decision to refrain from partnering with DoorDash and other delivery platforms, the restaurant found its name listed on the app without consent. Managing owner Nate Bertasso expressed dismay, recounting instances where delivery drivers arrived at his restaurant expecting orders that were never placed.

Upon contacting DoorDash to rectify the situation, Bertasso encountered a frustrating response. Instead of removing Nico's Pizza from the platform entirely, DoorDash marked the restaurant as "temporarily closed," causing more confusion among potential customers. Despite Bertasso's repeated efforts to have Nico's Pizza completely removed from DoorDash, the restaurant remained listed. Frustrated by the lack of cooperation from the delivery service, Bertasso sought assistance from investigative journalists at KSL. Following KSL's intervention and inquiries directed at DoorDash, the fraudulent listing for Nico's Pizza was eventually removed from the platform.