Cloud kitchens, sometimes called ghost or virtual kitchens, have ditched the traditional dine-in model for a fully online operation, relying on third-party services to handle orders and deliveries. These kitchens, absent of any physical dining space, exclusively operate through various online platforms, allowing multiple restaurants to work side by side.
Customers can conveniently place orders through delivery apps or with a direct call, and the cloud kitchens take care of the entire process from preparation to packaging and delivery. Whether using in-house logistics or third-party services, the goal is to get the food to your doorstep.
Unlike your regular restaurant which caters to both dine-in and online orders, cloud kitchens focus solely on the delivery aspect, giving you the luxury of enjoying your favourite dishes in the comfort of your home. These establishments, often buzzing in Silicon Valley conversations, provide affordable shared spaces for cooking, initially set in motion by Diego Berdakin and Sky Dayton in 2015, and later taken over by Travis Kalanick in 2018.
Evolution (Past and Future):
History:
The roots of cloud kitchens go back to the early ’90s when food trucks gained popularity for being convenient and pocket-friendly, especially around busy areas like universities and companies. With the rise of delivery services, food trucks became even more sought after. In the 2010s, cloud kitchens shook things up by setting up shop in industrial areas, cutting down on costs.
Future:
The demand for cloud kitchens is expanding globally, due to an increase in the need for the food delivery market, and urbanization trends. The global food delivery market is projected to hit 6 billion by 2025. In India, the food delivery market is expected to reach new heights in 2025 and all credit can be given to the advancements.
Navigating the Cloud Kitchen Business Landscape:
Understanding the ins and outs of the cloud kitchen business involves a better perspective to understand the new challenges and explore the opportunities in this rapidly growing industry. The advantages largely constitute increased efficiency, lower overhead costs, and chances for expanding into new territories.
Success Stories:
Numerous cloud kitchen businesses have carved out success stories:
Rebel Foods: India’s biggest cloud kitchen company boasting 400 kitchens across 30 cities, securing a whopping 0 million in funding from international investors.
Faasos: A specialist in Indian cuisine, Faasos operates over 200 cloud kitchens in 20 cities, raking in over 0 million in funding.
Wow! Momo: Famous for its momos, Wow! Momo has 500 kitchens in 50 Indian cities, pulling in over $100 million in funding.
Eat Club: Operating in the United States with 100 kitchens in 20 cities, Eat Club has bagged over $100 million in funding.
Eat Sure: A home-cooked meal-focused cloud kitchen brand in India, with 50 kitchens in 5 cities and over $10 million in funding.
In summary, the future of the cloud kitchen industry looks promising, driven by the surge in online food ordering and the demand for cost-effective and efficient alternatives to traditional dining setups.
