Imagine for a moment a restaurant kitchen space missing it’s storefront, but still able to take on and deliver on millions of orders per year? This is the up and coming business model of the restaurant industry and it’s already making a name for itself throughout the world. Enter cloud kitchens.
Squiggy, India’s largest food delivery service, as well as other big players such as former UBER CEO Travis Kalanick , Zomato, and Kitchen United have already begun to invest in these smart kitchens. Buying up real-estate throughout Saudi Arabia and other parts of the world in order to create these ghost kitchens to connect to delivery platforms so that restaurants could meet a higher demand without the need of servicing a front-of-house.
The Industry Forecast
The National Restaurant Association recently released their industry report forecasting the restaurant industry outlook to 2030 and the numbers are astounding. Cloud kitchens are expected to account for at least $360 million of the expected rise in revenue to $1.2 trillion for the restaurant industry.
We are living in an era where traditional restaurants are fading to the background while more cost-effective options are rising to the forefront to service consumers. Consumers who have begun to become more selective about the foods they choose to consume and who demand availability of their dietary preferences without a large price tag. Cloud kitchens provide the traditional restaurant the fighting chance to meet consumer demands in a cost-effective way.
Save More, Serve More
Dark kitchens or cloud kitchens also allow restaurant businesses to share kitchen space and employees. Restaurant owners of shared kitchens can use the same employees to fulfill takeout orders for multiple restaurants under the same roof. Pairing this cloud kitchen business model with a food delivery service is the new direction of the industry, especially as consumers begin to become more partial to food delivery apps themselves over actual restaurant storefronts.
In the restaurant business, servicing customers in a virtual kitchen without having to sustain a front of house eliminates the hassle of extra employees, clean-up, and everything else that comes with running a traditional restaurant. Expansion becomes more cost-effective and easier to execute in the cloud kitchen business model bringing the old saying “work smarter, not harder” to a whole new level.
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