The Brief

Recently, I was working from home in Eagle Rock, hungry, but trying to meet my LAist deadlines. I decided to quickly go get lunch at a sushi place I’d been recommended, Rice and Nori.

Since I’m new to the area and rely on Google Maps for everything, I followed it to an address on Colorado Avenue in Pasadena.

But when I got there, I found myself in front of a liquor store and what looked like a small auto shop. You know, the classic red and black bold lettering with racer stripes along the exterior. Nothing like a restaurant.

But Google Maps insisted that this auto-shop-maybe-it's-a-warehouse was, in fact, where my lunch was being prepared. And on the sign above the door, it said Allied Food To-Go. So I took a deep breath and walked in.

What I found was something like an Amazon locker meets Hot Dog on a Stick. There was no hostess and no tables — no seating at all in fact. Instead, there were white lockers on the left all the way up to the ceiling, and a desk with a tablet on top.

I was confused as to where I was. There was an employee placing food into the lockers, assisted by what seemed to be a robot, but since talking to strangers is on my top 10 list of things I hate to do, I decided to just navigate this one on my own.

Food is picked up via lockers at CloudKitchen locations.

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Lucy Jaffee

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LAist

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The tablet had 15 restaurant options to choose from, and after scrolling past lots of birria and Mediterranean food, I found Rice and Nori on the last screen and picked what I wanted.

I awkwardly stood by the lockers, middle school flashbacks flooding in, wondering what would happen next.

Two robots at Allied Food To-Go ready to deliver food to the lockers.

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Lucy Jaffee

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LAist

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A few minutes later — a text! Apparently my order was ready in locker D2. I pressed a button on my phone and it opened automatically, like the gates of heaven, and there I found my spicy tuna onigiri and edamame. (I’d been looking in the other direction, but I’m pretty sure one of the robots put it there. Later, I found out they have names, Rosie and Johnny).

By now, the space was filling with delivery drivers hustling to grab orders. Still confused, still hungry, I sped off in my car to process what just happened.

Is this normal for Pasadena? Again, I’m new.

What is a ghost kitchen?

Back at home, I googled Allied Food To-Go and discovered it’s a ghost kitchen, a commercial kitchen where multiple vendors make food that’s ordered online for pickup or delivery. Perfect for the digital age, customers and drivers usually pick up their orders using a tablet — no interaction with an employee is necessary.

Allied Food To-Go is just one location of CloudKitchens, a larger company that operates multi-vendor ghost kitchens in cities like Los Angeles, Miami, and New York (Co-founder of Uber Travis Kalanick invested a few years ago). In L.A. according to its website, CloudKitchens currently operates 11 ghost kitchens in places like Long Beach and Koreatown.

I tried to contact CloudKitchens but they couldn’t be reached. I only got through to one location in Echo Park, who declined to comment.

How does it work?

Ghost kitchens took off due to the pandemic when many restaurant owners shifted to delivery-only operations to reach customers out of public safety concerns. By leaving their storefronts and switching to a less costly ghost kitchen, they could also cut costs — making this new set-up popular post-pandemic too.

I wanted to understand more, so I tracked down George Shenefelt, a partner at Rice and Nori. He told me that they’d initially partnered with CloudKitchens to experiment with other concepts (but haven’t thus far) because their locations had become too busy for the kitchen to make anything besides their staples.

Most ghost kitchens function the same way. Food vendors pay rent to the ghost kitchen operator, whether it be a company like CloudKitchens or an individual, to use the space. The prices vary according to the size of the space, type of equipment and whether additional storage is needed, according to CloudKitchens’ website.

The exterior of DTLA Kitchens, an independent commercial kitchen located in southeast Los Angeles.

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Courtesy of Yuri Amsellem

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Another fee is added for utilities and general operating costs, such as the employees (or robots) needed to transport food from the kitchen to customers.

Vendors are given individual or shared kitchen spaces to prepare and produce their food. Their workstations are usually adjacent to other local vendors renting in the same ghost kitchen.

On a food delivery app, these all show up as different restaurants, but their locations will be the same. The only way to tell if it's from a ghost kitchen is to look up the vendor’s address or drive there.

Since ordering delivery is the reality for most of us at the end of a long day, chances are you’ll never stumble into a ghost kitchen like I did.

Struggling without a storefront

While ghost kitchens can be a good way for restaurants to cut costs, they come with several downsides. Shenefelt says he has found staffing the ghost kitchen to be challenging.

“It kind of feels like a prison,” he said. The space has no windows and is only around 200 square feet, turning off many employees looking for more interactive work experiences.

Another major drawback is that without a storefront, a new restaurant can struggle to find customers. Rice and Nori has been around since 2018, has two locations and an Instagram following. But others are not so well-established.

Janet Kang originally started Pizza Baby as a ghost kitchen but broke her lease last September because sales were too low. Between paying for rent and utility costs, she had no extra money available for marketing to draw in customers.

She said it’s a “matter of money,” whether using a ghost kitchen ultimately turns out to be profitable. “Do you have enough cash reserve to stick around long enough to get noticed?”

The inside of a commercial kitchen for rent at DTLA Kitchens.

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Courtesy of Yuri Amsellem

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Winston Shipp, founder of ¡Quesadilla Mía! shared a similar experience. He started in the pandemic renting a space at a delivery-only CloudKitchen. But few knew of their brand.

“You are at the mercy of people searching on apps looking for food,” said Shipp. He also left CloudKitchen and now rents a kitchen for a limited number of hours per week, rather than having a permanent space in a ghost kitchen.

Shipp sees ghost kitchens as ideal options for already-successful restaurants looking to move delivery away from their brick-and-mortar locations. Kitchen staff can better focus on dine-in customers and prevent long lines and wait times.

However, Yuri Amsellem, owner of DTLA Kitchens, a commercial kitchen that is used as a ghost kitchen and for other ventures like filming in southeast LA, sees ghost kitchens as a “great start” for small businesses. “We are incubators,” he told LAist, where vendors will eventually expand into their own brick-and-mortar locations.

Should I order from one?

If you need a reliable lunch option when hunger strikes, ghost kitchens are the way to go. With no dine-in customers to distract the kitchen, your food will arrive quickly to your doorstep. Or, you can pick it up from an automatic locker.

But if you’re new to a restaurant and need some advice on what to order, opt for a brick-and-mortar. Employees can impart their knowledge about flavor, the level of spice, or whether the dish you want contains traces of gluten, among other preferences.

Five sushi hand rolls from Rice and Nori, with fillings ranging from cucumber to spicy salmon, wrapped in your choice of seaweed or soy paper.

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Courtesy of George Shenefelt

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Plus, it's hard to beat an excellent mealtime ambiance.

So, would I go back to a ghost kitchen?

Maybe.

My Rice and Nori order from Allied Food To-Go was delicious and the food quality was not compromised. It was packed in sealed containers with extra soy sauce and chopsticks.

But at the end of the day, I prefer a meal shared with friends amid a lively restaurant. No ghost kitchen can replace that.

By the end of January, students will have returned to two of the three public school campuses burned in the Palisades Fire one year prior, though their classrooms are temporary.

Palisades Charter High School students are scheduled to return to their campus Jan. 27. They’ve been in a refurbished Santa Monica department store since April.

“ I am just overwhelmed with gratitude for the constant support that has been shown for our school and for our families, our teachers, all of our administrators and staff,” said Principal Pamela Magee at a press conference Tuesday with Los Angeles Unified leaders. Pali High is an independent charter high school located on district property.

In June, the LAUSD Board approved a $604 million plan to rebuild the high school, as well as two burned district elementary schools— Marquez and Palisades.

Superintendent Alberto Carvalho said the three campuses’ new buildings will open in 2028— shaving two years off of the original 5-year timeline.

“ These projects will come in on time or ahead of schedule,” Carvalho said. “These projects will come in at or below budget, and these projects will honor the resilience, the determination, the courage and yes, the suffering and the sacrifice of the community of the Palisades.”

About the costs and the design

The district plans to use money from the $9 billion bond voters approved in 2024 to help pay for the rebuild, but also anticipates some reimbursement from its insurer and FEMA.

District-contracted architects are finalizing their designs and plan to submit to the state for approval in the spring, said Chief Facilities Executive Krisztina Tokes. She said the plan is to rebuild with future environmental risks in mind.

“ From the earliest design stages, wildfire resiliency has been treated as a core requirement and not an add-on,” Tokes said. For example, using fire-resistant concrete blocks, installing enhanced air filtration systems and planting shade trees where they won’t hang over buildings.

Environmental testing preceded students’ return to the fire-impacted campuses. Director of the Office of Environmental Health and Safety Carlos Torres said the district continues to monitor air quality through its network of sensors and is developing a plan for periodic testing.

“We just can't just walk away,” Torres said.

Enrollment is down at all three schools compared to before the fires, but district leaders say they are confident families will return to the rebuilt campuses.

“I find it hard to believe that this community won't come back to its former glory,” said Board Member Nick Melvoin, who represents the Palisades. “We gave a lot of thought in an accelerated timeline to rebuilding for the next century.”

Marquez Charter Elementary

What’s the damage? The campus is a “total loss.” More than three dozen classrooms, administration buildings, the school’s auditorium and playground burned down.

How much has LAUSD budgeted to rebuild? $202.6 million

Where are the students? Students returned in September to portables covering about one-third of the campus. There’s also two playgrounds, a garden, library and shaded lunch area. Enrollment has dropped 60% compared to before the fire from 310 to 127 students.

What’s next? District-contracted architects are finalizing their designs and plan to submit to the state for approval in the spring.

Palisades Charter Elementary School teacher Ms. Davison talks with her students in their new classroom on the campus of Brentwood Elementary Science Magnet last year.

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Brian van der Brug

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Los Angeles Times via Getty Images

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Palisades Charter Elementary

What’s the damage? About 70% of the campus was destroyed including 17 classrooms, the multipurpose room and play equipment.

How much has LAUSD budgeted to rebuild? $135 million

Where are the students? Students continue to share a campus with Brentwood Science Magnet. Enrollment has dropped 25% compared to before the fire from 410 to 307 students.

What’s next? District-contracted architects are finalizing their designs and plan to submit to the state for approval in the spring.

Palisades Charter High School, pictured in December 2025, is scheduled to reopen to students Jan. 27, 2026.

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Kayla Bartkowski

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Los Angeles Times via Getty Images

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Palisades Charter High School

What’s the damage? About 30% of the campus was destroyed including 21 classrooms, storage facilities and the track and field.

How much has LAUSD budgeted to rebuild? $266 million

Where are the students? Students started the school year in a renovated Sears building in downtown Santa Monica. Enrollment has dropped 14% compared to before the fire, from 2,900 to 2,500 students.

What’s next? Classes will resume at the main campus Tues. Jan. 27 in a combination of surviving buildings and 30 new portable classrooms.

The Trump administration says it’s planning to freeze about $10 billion in federal support for needy families in California and four other Democrat-run states, as the president announced an investigation into unspecified fraud in California.

The plans come on the heels of the Trump administration announcing a freeze on all federal payments for child care in Minnesota, citing fraud allegations against daycare centers in the state.

The state’s Democrat governor, Tim Walz — who ran for vice president against Donald Trump’s ticket in 2024 — announced Monday he was dropping out of running for reelection. He pointed to fraud against the state, saying it’s a real issue while alleging Trump and his allies were “seeking to take advantage of the crisis.”

On Monday, the New York Post reported that the administration was expanding the funding freeze to include California and three other Democrat-led states, in addition to Minnesota. Unnamed federal officials cited “concerns that the benefits were fraudulently funneled to non-citizens,” The Post reported.

Early Tuesday, President Trump alleged that corruption in California is worse than Minnesota and announced an investigation.

“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun. Thank you for your attention to this matter! PRESIDENT DONALD J. TRUMP,” the president wrote on his social media platform Truth Social.

He did not specify what alleged fraud was being examined in the Golden State.

LAist has reached out to the White House to ask what the president’s fraud concerns are in California and to request an interview with the president.

“For too long, Democrat-led states and governors have been complicit in allowing massive amounts of fraud to occur under their watch,” said an emailed statement from Andrew Nixon, a spokesperson for U.S. Department of Health and Human Services, which administers the federal childcare funds.

“Under the Trump administration, we are ensuring that federal taxpayer dollars are being used for legitimate purposes. We will ensure these states are following the law and protecting hard-earned taxpayer money.”

Gov. Gavin Newsom’s press office disputed Trump’s claim on social media, arguing that since taking office, the governor has blocked $125 billion in fraud and arrested “criminal parasites leaching off of taxpayers.”

Criminal fraud cases in CA appear to be rare for this program

Defrauding federally funded programs is a crime — and one LAist has investigated, leading to one of the largest such criminal cases in recent years against a California elected official, which surrounded meal funds.

When it comes to the federal childcare funds that are being frozen, the dollar amount of fraud alleged in criminal cases appears to be a tiny fraction of the overall program’s spending in California.

A search of thousands of news releases by all four federal prosecutor offices in California, going back more than a decade, found a total of one criminal case where the press releases referenced childcare benefits.

That case, brought in 2023, alleged four men stole $3.7 million in federal childcare benefits through fraudulent requests to a San Diego organization that distributed the funds. All four pleaded guilty, with one defendant sentenced to 27 months in prison and others sentenced to other terms, according to authorities.

It appears to be equivalent to one one-hundredth of 1% of all the childcare funding California has received over the past decade-plus covered by the prosecution press release search.

Potential impact on California families

The plans call for California, Minnesota, New York, Illinois and Colorado to lose about $7 billion in cash assistance for households with children, almost $2.4 billion to care for children of working parents, and about $870 million for social services grants that mostly benefit children at risk, according to unnamed federal officials speaking to the New York Times and New York Post.

In the largest category of funding, California receives $3.7 billion per year. The program is known as Temporary Assistance for Needy Families, or TANF.

 ”It's very clear that a freeze of those funds would be very damaging to the children, families, and providers of California,” said Stacy Lee, who oversees early childhood initiatives "at Children Now, an advocacy group for children in California.

 ”It is a significant portion of our funds and will impact families and children and providers across the whole state,” she added. “It would be devastating, in no uncertain terms.”

About 270,000 people are served by the TANF program in L.A. County — about 200,000 of whom are children, according to the county Department of Public Social Services.

“Any pause in funding for their cash benefits – which average $1000/month - would be devastating to these families,” said DPSS chief of staff Nick Ippolito.

Ippolito said the department has a robust fraud prevention and 170-person investigations team, and takes allegations “very seriously.”

It remains to be seen whether the funding freeze will end up in court. The state, as well as major cities and counties in California, has sued to ask judges to halt funding freezes or new requirements placed by the Trump administration. L.A. city officials say they’ve had success with that, including shielding more than $600 million in federal grant funding to the city last year.

A union representing California childcare workers said the funding freeze would harm low-income families.

“These threats need to be called out for what they are: direct threats on working families of all backgrounds who rely on access to quality, affordable child care in their communities to go to work every day supporting, and growing our economy,” said Max Arias, chairperson for the Child Care Providers United, which says it represents more than 70,000 child care workers across the state who care for kids in their homes.

“Funding freezes, even when intended to be temporary, will be devastating — resulting in families losing access to care and working parents facing the devastating choice of keeping their children safe or paying their bills.”

Federal officials planned to send letters to the affected states Monday about the planned funding pauses, the New York Post reported. As of 3 p.m. Tuesday, state officials said they haven’t gotten any official notification of the funding freeze plans.

“The California Department of Social Services administers child care programs that help working families afford safe, reliable care for their children — so parents can go to work, support their families, and contribute to their communities,” said a statement from California Department of Social Services spokesperson Jason Montiel.

“These funds are critical for working families across California. We take fraud seriously, and CDSS has received no information from the federal government indicating any freeze, pause, or suspension of federal child care funding.”