The term cloud kitchen or ghost kitchen refers to a business model where food is prepared and delivered at the doorsteps of the customers. The orders are accepted via calls or online platforms, and cloud kitchens do not provide dine-in services.
5 major reasons for the growing popularity of cloud kitchens
As per the by CNBCTV18, 52% of the respondents who participated in a survey placed their bet in setting up a cloud kitchen. Let’s try to delve deep into the reasons that make cloud kitchen such an attractive proposition.
Increasing importance of hygiene – With the outbreak of Covid-19, customers have become more safety conscious. They do not want to wait in long queues outside the restaurant and most of them prefer to order food online. The option of contactless delivery makes cloud kitchens a more attractive option.
Lower initial investment – As there are no dine-in-services, the space required to start a cloud kitchen is 75-80% less than that of a traditional premium restaurant. There is no need for tables and chairs that help you save the overhead expenses considerably. When compared to that of traditional restaurants, the number of staff required is also comparatively less as waiters, front office staff and security guards at the parking area are also not required. The only expense incurred initially is the cost of buying kitchen utensils and related items.
Reduced wastage and theft – With the help of leading cloud kitchen software such as inresto, you can track inventory real-time that minimise wastage and theft. Cost effective processes help manage waste and add on to your profits. In addition to the above benefits, the automated purchase orders help streamline vendor management.
Serve multiple customer segments – Unlike the traditional restaurants that cater to a particular segment such as Chinese, Thai or Mexican cuisine cloud kitchen offers the scope of serving multiple customer segments. Using the same kitchen, you can provide food for various demographics.
Scalabality factor – A single cloud kitchen serves customers around a 2 to 3 miles radius area. In the future, if you feel that a different location has more business potential, then you can open a new outlet in that area.
As contactless dining has become the new normal, food and beverage industry stand to gain enormously from cloud kitchens. Restaurateurs have come up with different models of cloud kitchen to meet the increasing demand from customers.