Unstable working hours and growth of online delivery services drive the cloud kitchen market in the forecast years.
According to the TechSci Research report, “Cloud Kitchen Market – Global Industry Size, Share, Trends, Competition, Opportunities and Forecasts, 2018-2028F” The global cloud kitchen market is predicted to grow at an impressive rate by 2028. In a cloud kitchen, food is prepared only in a commercial kitchen for delivery or takeout; there are no guests having dinner. With the help of cloud kitchens, restaurateurs can quickly grow an existing business or launch a digital brand. This allows restaurants to expand, investigate new markets or test new concepts. Many restaurants use cloud kitchens as an experimental environment where new concepts can be tested while staffing and inventory are cloud kitchens have been popular even before the epidemic. Cloud kitchens are more profitable now and can operate in a space only a quarter the size of a typical restaurant. Restaurants can serve directly to customers’ homes while using a fraction of the area required by conventional restaurants using what are also known as “ghost kitchens.” This streamlines kitchen procedures in ways a restaurant cannot, allowing them to use resources more efficiently.
Before Covid-19, there had been a certain separation between brands focused on distribution, which encouraged the dinner. However, the situation will not be like this in the future. The cloud kitchen market is driven by lower real estate costs, better expansion opportunities, and lower overall costs. Moreover, the cloud kitchen market has grown significantly due to technological improvements. Different ways to order food, including online and mobile apps, have reduced direct human interaction, reducing the risk of human error and improving customer service. Additionally, future applications of new, advanced technology, such as driverless vehicles and drones, speed up the meal delivery procedure.
The demand for fast food has increased due to changes in consumer lifestyles and altered eating patterns. The number of cloud kitchens has increased due to rapid changes in underlying factors, including disposable income, consumer tastes, working women population and digitization. This, in turn, drives the expansion of the market for cloud kitchens.
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The Cloud Kitchen market is segmented on the basis of type, product type, order source, payment method, and region. The type is segmented into freestanding cloud kitchens, communal/shared cloud kitchens, and galley kitchens. Based on product type, the market is segmented into food Vs. Drink. Further, the order source is fragmented into web Vs. Mobile application. And payment mode is divided into cash on delivery, UPI, card transaction and others.
In terms of type, the independent cloud kitchen dominated the industry because they are only operated by a single brand from a single kitchen and there is no one diner. Although they have dominated the market, kitchen pods are growing, as they are portable and do not require much space.
Key market players in the Cloud Kitchen market include:
- Pop food
- Doordash, Inc.
- Ghost Kitchen Orlando
- Combined kitchen
- Goodbaby International Holdings Ltd.
- Kitopi Catering Services LLC
- Rebel Foods Private Limited
- The Starbucks Corporation
- Zomato Limited
Rebel Foods bought a majority stake in major chocolate company Smoor. This is in line with the business’s latest statement that it will invest US$150 million over the years as part of its focus on financing and acquiring profitable brands to offer new food categories from its cloud kitchens.
In 2021, three cloud kitchens and the main production facility were launched by Kitopi in Bahrain. Kitopi has now opened cloud kitchens in Adliya, Seef Mall, Muharraq and Hamad Town, and a central kitchen manufacturing facility in Bu Quwah after starting its operations.
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“The most important part about cloud kitchens is that they do not require significant upfront costs. One can start small and scale. Expanding to new locations and menu options becomes easier once one builds a brand and has dedicated customers.” said Mr. Karan Chechi, Director of Research with TechSci Research, a global research-based management consulting firm.
“The Cloud Kitchen Market, from Type (Independent Cloud Kitchen, Commissary/Shared Kitchen, Kitchen), By Product Type (Food vs Beverage), By Order Source (Web vs Mobile App) By Payment Method (Cash on Delivery, UPI, Transaction by card, others (mobile Wallets, Internet Banking, etc.) According to Regions, Competition”, has assessed the future growth potential of Cloud Kitchens and provides statistics and information on market structure, size, share and future growth. The report aims to provide cutting-edge market intelligence and help decision makers make sound investment decisions. Apart from this, the report also identifies and analyzes the emerging trends along with the essential drivers, challenges and opportunities present in Cloud Kitchens globally.
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