Globally, Covid-19 has led to a major disruption in the restaurant industry. The mounting losses have forced a huge number of restaurateurs to shut down their businesses. In this bleak scenario, the concept of cloud kitchens has gained increasing popularity. As per Apnews.com, the global cloud kitchen market size was valued at $43.1 billion in 2019, and is estimated to reach $71.4 billion by 2027 with a CAGR of 12.0% from 2021 to 2027.
How a cloud kitchen works?
Also known as ghost kitchens, cloud kitchens are delivery-only restaurants. Under this model, there is no dining space. Customer place food orders online through call centres, third party delivery platforms and social media platforms. As per the order, the food will be delivered at the doorsteps of the customers.
3 key factors that makes cloud kitchen a clear favourite in 2021
Sharp decline in sales at traditional restaurants – As per S&P Global report in Jan 2021, the number of seated diners in the US was down 60.4% year over year. Customers have become more hygiene conscious and they prefer to order food online rather than visiting restaurants. It clearly paves the way for the boom in cloud kitchens.
Higher profit margins – For traditional restaurants, setting up the business in a prime location is an inevitable factor. Thus, huge rent amounts make a dent in the profits of brick-and-mortar restaurants. In the case of cloud kitchens, there is absolutely no need to establish your venture in a posh locality. As long as you are able to deliver the orders on time, you can operate from any location. In terms of staff costs also you can save enormous amounts of money. There is no need to hire servers, bussing staff etc.
Technology aids in managing orders – Since the customers place orders using various avenues, managing the orders is a tedious task. No need to worry as digital restaurant management platforms like inresto restaurant POS takes care of order management. The system seamlessly processes orders from multiple platforms such as websites and apps. One more benefit is that customers can scan the digital menus on their mobile phones and place orders.
In 2021, restaurant industry is witnessing a clear shift in the consumption patterns of customers. Even influencers like MrBeast has stepped into the cloud kitchen industry by launching his MrBeast Burger brand, contributing to the cloud kitchen industry. The 3 factors discussed above make the cloud kitchen business quite attractive. Undoubtedly, cloud kitchens are here to stay for the long term.