Economic analysis of the conflict of property rights caused by Dark Kitchens

Abstract

After more than two years of restrictions caused by the Covid-19 pandemic, new sales channels for restaurant business, especially the delivery type, have proliferated. Bars and restaurants started investing in dark kitchen system, or rather, warehouses with industrial kitchens exclusively for the delivery of food and beverage. The system caused significant cost reduction for entrepreneurs and for fast deliveries to consumers. Current study analyzes the best solution to the property rights conflict between dark kitchens and their neighborhood. Methodology comprised deduction-description and bibliographical research technique. It must be stated that, according to the material criterion of justice, the person responsible for the unlawful act should, as a rule, in the absence of exclusions for liability, indemnify the party who bore the losses or stopped the undue interferences. Regarding the economic aspect, the above solution is not necessarily the most appropriate, since the possibility of negotiation between the parties must be analyzed. Further, state intervention will only be necessary if negotiation between parties is not possible, since it aims at the maintenance of jobs and revenue. Special attention should be given to the fact that consumers would also be harmed since they would no longer have access to a faster delivery service at reduced prices.