What Are Cloud Kitchens?

Cloud kitchens are licensed commercial food production facilities where multiple restaurants can rent space to prepare delivery-optimized menu items. Due to advances in technology and changes in consumer habits, cloud kitchens offer the ability to grow your restaurant business in prime locations at a fraction of the cost.

Cloud Kitchen Statistics

The food delivery industry overall is set to grow to a $200 billion industry by 2025. With that being said, the Cloud Kitchen industry is anticipated to reach $71.4 billion by 2027. The latest statistics show that there are 18,100 searches per month for “Cloud Kitchens”, resulting in a 625% increase in growth over the past 5 years. This market offers a lot of room for innovation and expansion. 

Cloud Kitchen Benefits

  • Low overhead costs
  • Access to user data and real-time adaptability
  • Digital brand awareness

Cloud Kitchen Opportunities

Cloud kitchens open a new door to a world of innovation and creation. Possible ways to expand the cloud kitchen industry are…

  • Build a space designed specifically for the needs of cloud kitchens. Design a kitchen space that includes all the components a kitchen requires. Utilizing the entire space efficiently for multiple renters allows you to maximize profit.
  • Run a shared cloud kitchen. If you already have certified open kitchen space, you can consider renting it to one or multiple third-party brands. This allows you to make some extra cash while your kitchen is inactive.
  • Create a centralized app to connect all cloud kitchens. Construct an app that connects only local cloud kitchens in a defined area. Having a centralized app that only promotes cloud kitchens offers digital marketing to small businesses that would not have the same recognition on aggregator apps such as DoorDash or UberEats. Creating this exposure for new businesses also offers new dining choices, one a consumer might not have known about before.
  • Design the most efficient and effective to-go packaging. If you have ordered food delivery before, I am sure you are aware of how much plastic and excess materials go into each order. Creating a new design for food packaging that is disposable, affordable, and effective can be a huge environmental precaution with the increase in the food delivery industry.

What to Expect

As with any new industry, there are potential difficulties that may occur.

  • Reliance on third-party delivery apps. It can be difficult to rely on third-party delivery apps such as DoorDash or UberEats to be your main source of customers. Being a “virtual” restaurant also offers the possibility of technical difficulties and miscommunication. Become familiar with the technology involved to minimize errors and frustration.
  • Food quality and safety. Delivering food comes with the responsibility of being able to transport each meal perfectly, and at the correct temperature. Perfecting the food transportation process helps ensure that customers will be satisfied and order again.
  • Competing in a crowded digital marketplace. Lacking physical presence makes it difficult to gain exposure and differentiate your business from competitors. Consider promoting your restaurant on multiple platforms to increase awareness.

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