New social norms are propelling the masses to be more virtually active and less socio-physically engaged. Even with social distancing, restaurant patrons may be exposed to ventilation-assisted airflow that keeps viruses airborne. Therefore, the cloud kitchen has become the future of the food and beverage industry.
What Is a Cloud Kitchen?
The cloud kitchen is the concept of a delivery-only restaurant, with no physical space, no dining space or takeaway counter. It is a restaurant kitchen and only accepts orders without traditional restaurants or dining facilities. It’s just an operational kitchen, used to prepare food, and as a production unit. No fancy infrastructure, no waiters, no tables, no furniture, nothing at all. Customers can place orders online through an online food aggregator app or a restaurant app, hence, the name cloud kitchen. These kitchens are sometimes also called ghost kitchens, dark kitchens or virtual kitchens.
Advantages of Cloud Kitchen
✅ Easy Expansion
Since the operation is limited to the kitchen, the total cost of capital expenditure is much lower than that of a fully established restaurant. Restaurants can use the scale of cloud kitchens to test new geographic locations and consumer adoption rates without investing in infrastructure.
✅ High-Profit Venture
You can start the cloud kitchen with fewer employees, minimal kitchen equipment, no furniture costs, and no decoration costs. Therefore, it allows restaurant operators to experiment flexibly, cut expenses and quickly reach operating breakeven, thus making it a profitable business.
✅ Lesser Human Resources Required
It only takes one third of the time and resources to open a cloud kitchen compared to a traditional dining restaurant since you don’t need to be in a restaurant in a prime location or hire employees to serve customers.
✅ Low Operational Costs
For cloud kitchens, many operating costs incurred by traditional restaurants have been eliminated. Theoretically speaking, whether it is infrastructure costs, indirect costs, logistics costs, etc., cloud kitchens have lower costs and have advantages over the physical restaurants.
✅ No Investment Business
The cloud kitchen can be designed as a very streamlined operation-reducing personnel and infrastructure, thereby reducing risk. Compared with physical restaurants, the initial investment required to start a cloud kitchen is much less.