Cloud kitchen : The Latest Trend in the Restaurant Industry

Cloud kitchens have slowly evolved into the new normal of the restaurant industry. It's hard to ignore the gifted quality it has by becoming a tangible way for restaurateurs to shape their dream into a reality. From energizing home chefs to conveniently aiding the expansion of a restaurant brand - this single unit of the industry flourishes several dimensions of the food community.

● EMERGENCE & EVOLUTION

It’s obvious to note that the rise of cloud kitchens took place with the coming of Covid-19. Akin to the other industries of the world, the restaurant industry explored options to dodge losses and ended with the emergence of cloud kitchens that created a digital revolution.

Gradually changing the way people interact with the food community, cloud kitchens have given a completely new face to the industry, making it the talk of the town like never before. While many industries saw the forced push into digitization as an unfavourable event, the same served a great explorative motive for restaurants. Evolving from just 5-10% of online delivery engagement to it taking over 5-6 quarters of the business; it portrays the significant role that the digital revolution plays.

● MERITS

Understanding the multiple employment opportunities this space provides is necessary. It gives a reachable outlet for the talented chefs and budding entrepreneurs to start their journey without having to face the scare of investment rates. It encourages natural talent over financial background by ruling out the necessity of real estate expenses. Having a physical space for the customers to dine in, though traditional as it is, has stopped being the number one necessity to create. This tipped down the expenses by a huge estimate, things such as furniture, cutlery, infrastructural investments and electricity have gone out the list of concerns. This furthermore gives the kitchens to explore on bettering the quality of the food and the packaging they employ.

Cloud kitchens create an average profit margin of about 10%, compared to the previous 3% profit margin restaurants saw before. The continuation of the revolution not only guarantees further profits but also increases employment rates and opportunities. The emergence of cloud kitchens successfully and consistently reverts the heavy losses the industry experienced during the first wave of the pandemic.

● EXEMPLARS

For instance the growth that Rebel Foods’ Faasos met within a short span of time can be used to depict the power cloud kitchens in the current society. Initiated as a small start up from Pune in the year 2011 it reached a great acceptance from the consumers and grew rapidly to start its own mobile application in 2014. It now operates much outside its parent land and serves from 160 plus kitchens and collectively outlets from 4 different brands.

It has become the only company that works on all the three stages of food on-demand businesses; which are: ordering, distribution and order fulfillment in the online food delivery sector of the industry. It’s contribution has increased nationwide and has brought in a collection of cuisines ranging from wraps, burgers, pizzas and other fast food varieties.

Another remarkable growth is that of MOJO Pizza, a contribution of Poncho Hospitality Pvt. Ltd. The outlet, though still at its initial stages of growth has achieved more than what is commonly expected and has placed itself among the famous cloud kitchens of India. It serves over 1 million customers all over India without any physical presence. Within just two years, it grew into India’s second largest pizza chain that runs successfully in Mumbai, Pune, Bangalore and Gurgaon, standing next to Dominos. There are plans on further expansion of the brand with regard to the positive growth and acceptance from consumers it showcases.

These successful examples highlight the minimal investment required to create change to the way people interact with food and effectively contribute to the industry that’s changing by the day. Along with these other notable growths include Biryani by Kilo, Soba - Asian Kitchen and Masala Box Food Network Pvt.Ltd

● CONSUMER ACTIVITY

But consumers, being the top of the industry’s priority, have particularly grown fond of the revolution and have been receiving it good and well. Embracing the new found liberty of having thousands of restaurants at the reach of a finger, they are able to serve themselves and explore from the multiplicity of cuisines, enjoy the food at the comfort of wherever they are and at any time. The industry has grown to serve their customers at a better rate, thanks to the innovation of technology and the collaborative work of the people that serve them.

It’s confident to say that convenience always wins, alongside to this the cloud kitchens bring with it a variety of flourishing dimensions the industry never knew it had. Single handedly taking over the industry and spicing up the food community, it also efficiently introduces the growing digital revolution and makes it not as alien as it is perceived to be.