The concept of takeaway food or home delivery is not foreign to the food and beverage industry and the masses; has even existed for decades, globally. The term ‘delivery only, without dining in’ which has now been coined as ‘Cloud Kitchen’ has been prevalent in India for a long time in the form of traditional Dabba / Tiffin delivery services and mobile canteens (food trucks). With this, Cloud Kitchens has established a tested and proven successful business model in India that has a strong foothold during the pandemic which is further revamped with advanced technical assistance.
In general, the thought of consuming food outside on occasion immediately draws images of an ambient dining experience in a restaurant, delectable food presented in luxurious cutlery and celebrations with family and friends. However, the cloud kitchen is making a breakthrough in this arena by bringing the similarity of the restaurant dining experience at home by serving everything from simple home-cooked food to special and luxury dinners. According to industry experts, India’s food service delivery market is expected to double in value to $13 billion by 2025 and cloud kitchen is set to become a $2 billion industry in India by 2024, up from $400 million in 2019.
Cloud Kitchens – Factors responsible for their sustenance and growth:
With the changing times, the outlook towards the restaurant business has seen a rapid change from the perspective of customers and business owners. A few years ago, the home delivery business contributed a small portion to the restaurant’s revenue which is now on the rise. Although the pandemic acted as a catalyst in setting a major shift in the Indian F&B industry from food to delivery, there are many other factors that are driving mushroom growth in India which mainly include increasing internet penetration, technology integration in business, and the rise of mobile App-based food delivery and aggregators. food online.
The cloud kitchen market in India is anticipated to grow in the next five years considering the rise in disposable income among the young population, shifting lifestyles and eating habits, easier and safer payment channels, and a busy and busy work-life culture that affects a lack of interest to cook at home.
Technology integration and its role in the development of the cloud kitchen:
The advancement and integration of technology has led to fundamental changes in the ordering and consumption of food. Today, cloud kitchens are disrupting the food industry by revolutionizing online food ordering applications. The F&B industry also welcomes innovative technologies with robotics and Artificial Intelligence (AI) interfaces to reduce the cost of prepared/delivered food and improve service standards.
Cloud Kitchen being digital in nature introduces innovative technology such as the implementation of Kitchen Display System (KDS) to increase productivity in the kitchen space-high octave. The customer’s food order details are accurately mentioned in the KDS which helps the staff to arrange the dishes according to the needs and requirements of the customers. Unlike waiters in restaurants mixing up orders which causes food waste and spoils customer service. The integration of AI-based technology in the cloud kitchen helps to streamline operations more smoothly and efficiently. It identifies the right ingredients to use when recording dishes, helps experiment with menus, manages inventory and shows how to deal with customer feedback professionally.
In this growing world, technologies including ground-based robots and aerial drones can further help reduce delivery costs. Also, automated standard processes that use predictive machine-based tools and robot chefs to prepare customized quality meals in less time at lightning-fast delivery speeds are set to redefine the future of the cloud kitchen industry.
Viable business model – Restaurant Business vs Cloud Kitchen:
The cost factor involved in starting a cloud-kitchen business is relatively low compared to brick-and-mortar business models and restaurant set-ups. Cloud kitchen includes low Capex and its setup usually requires 1/3 of the investment required to start a restaurant business. Cloud kitchen entrepreneurs do not have to worry about high rental costs, restaurant interiors and guest facilities, unlike traditional food restaurants. However, a larger chunk of investment in a cloud kitchen business is put into the technology that drives its operations, well-equipped kitchen infrastructure, training personnel, delivery fleet and supply chain management.
Some of the benefits of operating a cloud kitchen in a restaurant include lower rental costs, quick business set-up, scalability that can be built with low investment and increased customer reach with optimized delivery channels. The cloud kitchen model generates value and creates a win-win situation for both end consumers by offering them the convenience and service of ordering food from home and business owners in the F&B industry by reducing operational and real estate costs.
Trends driving the popularity of cloud kitchens:
Today, in the race to offer unique services and maintain their individual identity, many cloud kitchens have emerged as environmentally conscious brands. Many cloud kitchens have adopted a sustainable and authentic approach that goes beyond cooking techniques to food packaging materials. Food is delivered in authentic earthenware, steel cutlery, reusable glass jars, paper bags and cardboard boxes that encourage customers to help reduce plastic waste and pollution. This initiative not only helps in preserving the taste and nutrition of the food but also promotes a sustainable and healthy lifestyle among the customers.
In recent times, cloud kitchens are revolutionizing the F&B industry with advanced technology, changing consumer food consumption trends and operationally sound business models. Automated delivery, sophisticated machine learning algorithms and a skilled workforce will be critical factors in shaping the future of the food service industry in India.
How do you do digital marketing for cloud kitchens?
- The views expressed above are those of the author.
- More restaurants than ever are turning to cloud kitchens to further increase competition. There are good reasons for restaurants to do this. Restaurants have an average profit margin of 3% while the cloud kitchen profit margin hovers near 10%.
- 10 tips for marketing your cloud kitchen online
- Own your social media presence. …
- Take advantage of digital customer retention. …
- Encourage online referrals. …
- Consider online advertising. …
Manage reviews. …
What is Swiggy cloud kitchen?
Use email marketing to send regular newsletters. …
Lay the foundation with an attractive website.
Does Swiggy allow cloud kitchen?
How much does a cloud kitchen make a year? How much does Cloud Kitchen cost? As of August 30, 2022, the average annual salary for a Cloud Kitchen in the United States is $63,502 a year. If you need a simple salary calculator, that’s about $30.53 an hour. This equates to $1,221/week or $5,291/month.
Does Swiggy use cloud computing?
| According to Swiggy who introduced BrandWorks, the cloud kitchen initiative “cloud kitchen eliminates the large costs associated with housing and serving staff from conventional restaurants thus allowing restaurants to focus on cooking great quality food themselves. | What is a cloud kitchen? What is a Cloud Kitchen? The cloud kitchen uses a commercial kitchen for the purpose of preparing food for delivery or takeout only, and no dine-in customers. The cloud kitchen allows restaurateurs to expand their existing restaurants or start a virtual brand with minimal costs. | Zomato and Swiggy both offer infrastructure for cloud kitchen brands that include the space and technology support required to run a cloud kitchen. |
|---|---|---|
| Country | That came | State rank |
| India | 97.3% | 343 |
| United States | 1.2% | 73,473 |
Which cloud zomato uses?
Canada
What is cloud kitchen India?
0.5%
How much does a cloud kitchen cost in India?
19,826
Is cloud kitchen profitable in India?
Zomato is an India-based restaurant aggregator and food delivery company with over 350,000 restaurants listed in over 700 cities in India. In late 2020, Zomato engaged Amazon Web Services (AWS) to migrate the Profile Store, its in-house feature store, to a new database.
What is the difference between cloud kitchen and restaurant?
Cloud kitchens are primarily restaurant kitchens that accept incoming orders only through an online ordering system and do not offer dining facilities. Cloud kitchen is also known as dark kitchen, ghost kitchen, virtual restaurant, and satellite kitchen.
Is cloud kitchen and dark kitchen the same?
The equipment for the cloud kitchen costs between Rs 3.5-4.5 lakh. The interior costs around Rs 2.5-3 lakh. License and registration and franchise security deposit of Rs 2 lakh each.
What’s the difference between a cloud kitchen and a ghost kitchen?
The novelty has worn off as most restaurants are cloud kitchens these days, as people are reluctant to eat out. Experts say that COVID-19 is a blessing in disguise for the food technology industry. Cloud kitchens, in general, have not proven to be profitable or easy to scale.
What is a cloud kitchen model?
A cloud kitchen or virtual kitchen becomes a delivery-only kitchen. They thrive on online ordering through different food delivery websites and do not have physical food facilities. Unlike cloud kitchens, dine-in restaurants are traditional brick-and-mortar stores that have their own distinct branding.
Dark kitchens are also known as virtual kitchens, cloud kitchens, ghost kitchens or delivery-only restaurants. However you call it, the dark kitchen always revolves around the same concept: selling exclusive meals through delivery.
How cloud kitchen is different from a restaurant?
Ghost kitchens (also sometimes called cloud kitchens, dark kitchens, or virtual kitchens) are also only available online but do not operate in existing restaurants. They often don’t have a brick-and-mortar partner at all. Instead, they come out of the space rented from a third party.
What is the difference between cloud kitchen and dark kitchen?
What is Cloud Kitchen / Delivery-only Kitchen Business Model. A cloud kitchen is a delivery-only restaurant that has no physical space for food. It relies entirely on online orders placed through online food aggregators or online ordering enabled websites or mobile apps.
What is the difference between ghost and cloud kitchen?
What is the purpose of the cloud kitchen? The Cloud Kitchen is a fully equipped centralized kitchen, excluding front-of-house operations. Its main purpose is to prepare food for various brands and deliver it directly to consumers.
What is the difference between a ghost kitchen and a virtual restaurant?
A cloud kitchen or virtual kitchen becomes a delivery-only kitchen. They thrive on online ordering through different food delivery websites and do not have physical food facilities. Unlike cloud kitchens, dine-in restaurants are traditional brick-and-mortar stores that have their own distinct branding.
What does ghost kitchen mean?
Many names, one concept. Dark kitchens are also known as virtual kitchens, cloud kitchens, ghost kitchens or delivery-only restaurants. However you call it, the dark kitchen always revolves around the same concept: selling exclusive meals through delivery.
How many orders does a cloud kitchen get?
Both ghost kitchens and virtual restaurants are restaurant concepts that don’t have a brick-and-mortar dining experience. It is online only for delivery or pickup. Virtual restaurants (sometimes called cloud restaurants or delivery-only restaurants) are usually new brands that run out of existing kitchens.
Most people use the terms ghost kitchen and virtual kitchen interchangeably. But in reality, they are two separate operating models. Ghost kitchens operate out of space rented from a third party while virtual restaurants have existing locations and use their own kitchens to create new delivery-only menus.
What is the difference between ghost and cloud kitchen?
In the ghost kitchen, you cook in a delivery-optimized kitchen designed to cut unnecessary costs. Low rent and high efficiency. You have your own private commercial kitchen space in the delivery hub to cook to order. It can be difficult to expand your traditional restaurant with high overhead costs.
What is the difference between a ghost kitchen and a virtual restaurant?
BENGALURU: Food delivery platform Swiggy services around 1.5 million orders a month from over *500* cloud kitchens in 14 cities through ‘Swiggy Access’ which enables restaurants to provide delivery-only kitchens in new geographies where they do not operate.
What is the difference between cloud kitchen and dark kitchen?
How is the cloud kitchen? In fact, according to statistics, the global cloud kitchen market, valued at $51.96 billion in 2020, is expected to grow by 12.4% CAGR from 2021 to 2028 and could create a global opportunity of $1 trillion by 2030.