|Well, it's no secret that the pandemic has shattered the restaurant industry. The spread of COVID-19, and the numerous restrictions it has brought, has a massive impact on the relaxing dine-out culture. As more diners choose to eat at home and more restaurants seek new ways to serve customers, a dramatic shift has happened, resulting in a significant shift toward delivery. Enter cloud kitchens- a model that chefs and restaurateurs are adopting and diners are enjoying.
Here, We Explore:
|Are Cloud Kitchens the Future of Restaurants?
|Reasons Why Cloud Kitchens Are Future of the Restaurant Industry
|Acts as a Viable Business Survival Alternative
|In a Nutshell
Let Us Get Started!
Cloud kitchens are commercial kitchens that specialize in preparing food for delivery. There are no physical dine-in areas. Instead, they have a shared kitchen where chefs prepare meals and deliver them to customers' homes or offices via online delivery services such as Uber Eats, Postmates, Grubhub, and DoorDash.
With the third wave of COVID-19 whacking the country, cloud kitchens, also known as ghost kitchens or dark kitchens, are proving to be a viable backup, allowing restaurant owners to streamline operations and improve efficiency. Even though cloud kitchens were popular before the pandemic, they have become more lucrative in recent years for two main reasons.
|They allow restaurants to deliver food directly to customers' homes.
|They operate in a fraction of the traditional restaurant space, utilizing resources more efficiently through optimized kitchen workflows.
Are Cloud Kitchens the Future of Restaurants?
According to recent studies, cloud kitchens will grow at a 12 % CAGR by 2024. Customers' rising preference for online food delivery and restaurateurs' desire to cut costs brings up the question: are cloud kitchens the future of restaurants?
Some restaurateurs and startuppers say yes. Here’s why:
Reasons Why Cloud Kitchens Are Future of the Restaurant Industry
Due to the lower operating costs, restaurants that use the cloud kitchen will undoubtedly make more money, resulting in higher profits. This business model also comes with fewer risks. Compared to traditional restaurants, the initial investment is much lower. Despite the lower initial investment, business owners will have more flexibility in experimenting with their menu and services.
Cloud kitchens are a more financially viable Business Model than traditional restaurants because they do not have a physical presence. A traditional restaurant is expensive to open, whereas a cloud kitchen requires far less capital, resulting in low overhead costs.
The typical costs that get reduced in the KaaS (kitchen as a Service Model) are as follows:
|Infrastructure costs; because the kitchen in the cloud model can get changed anytime to optimize space.
|Interior design costs and other capital investments
Acts as a Viable Business Survival Alternative
The pandemic's health and safety factors were one of the primary factors contributing to the growth of cloud kitchens. Due to the lockdown, many restaurants have shut down their doors, resulting in business losses. With social distancing, most physical restaurants were unable to attract customers as they once did. As a result, organizational restructuring was critical for the majority of businesses. Switching to a cloud kitchen business model was one of the wisest choices. It usually involves lower costs, and with increased flexibility, restaurant owners can easily switch to this model quickly and affordably.
With social distancing as one of the most effective tools to fight the virus, customers had to stay back home. There was a greater risk of the virus spreading in brick-and-mortar restaurants. Cloud kitchens, on the other hand, meant increased safety, ensuring the customer's health was well-protected. As a result, restaurant businesses may need to undergo significant business restructuring.
As there is a well-defined model of work, cloud kitchens allow for faster services. Customers place orders via an online ordering system for restaurants, the respective cloud kitchen prepares the food, and a separate delivery network delivers the food to the customer. It's commonly referred to as distributed cooking. So, restaurants can concentrate on their food preparation process while delivery networks take care of the rest. All of this contributes to the model's efficacy. Overall, kitchens can get good profits, while customers can pay less for good and guaranteed food quality. Customers can order food quickly and easily using a restaurant’s online ordering system. Due to the overall benefits, more and more people are using these apps to order food.
In a Nutshell
Nowadays, people have started to prefer online platforms with the digitalization of all services. The same is true for food and the restaurant's online food ordering system. They don't have time to walk to a restaurant or drive through traffic for food, and the food delivery service providers have done a fantastic job of resolving this issue.
Cloud kitchens will change the way we eat in the future. The reason for its expansion is that the level of risk is relatively lower. The financial constraints are easily solved because the demand for the digital platform reduces the operational costs.