BUSINESS
TRENDS
CLOUD KITCHEN TREND ALL GHOST, NO GUEST
Also known as dark, ghost, shadow or virtual kitchens, cloud kitchens have gained immense popularity over the past couple of years, and there seems to be no stopping this upward trend. So what is a cloud kitchen exactly? It is basically a delivery-based no-dine-in restaurant — a kitchen with no storefront. The idea came after observing the growing demand for delivery services, both from independent restaurants and online food ordering and delivery platforms, some of which — like Deliveroo or Uber Eats — have taken over the world. New digital technologies, combined with efforts to cut costs, have paved the way for the cloud kitchen concept, although most brick and mortar restaurants are also offering delivery and takeaway services to improve their margins and ease their overheads.
As the global pandemic lockdown leaves restaurants, snack shops and bars temporarily out of business, the foodservice industry is racing to find off-premises alternatives A cost-cutting business model Eliminating a dine-in area means no serving to stay afloat and safeguard staff and no decor expenses. It enables jobs. Nagi Morkos, managing the owner to sidestep real estate costs by partner at Hodema consulting shedding the front-of-house and operating services, discusses the latest from non-prime locations. Significant savings are also made on marketing and trend of cloud kitchens. operations. This hoard of cash can end up being a lifeline for small, independent outlets that can increase their capacity to cater to
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the delivery market. And the setup costs are low as well, which means that newbies can try new brands, dishes and concepts without risking it all and changing their minds overnight without the hassle of refurbishing their premises. Also, the audience they deliver their food to is larger than the usual round-the-corner customer. Within the industry, the word has obviously been passed around in no time. The offer has thus multiplied across the globe to match evergrowing demand. And it seems that online food delivery is what demanding millennials have been asking for all along: a digital interface, a quick and no-fuss process, personalized offers combined with new cuisine trends and tailor-made marketing techniques.
Behind the (multifaceted) scenes With the concept expanding rapidly, many F&B investors felt its potential and started developing many different types of cloud kitchens. The original and most straightforward version is the “standalone” model: a single kitchen specialized in one menu for a single brand. It’s basically a restaurant with no physical store. The next one in line is a mix between a cloud kitchen and a takeaway joint. The business model resembles the former, but it has a storefront like the latter.
