market research agencies in mumbai
16 May 2024

Recipe for Success: Navigating the Cloud Kitchen Revolution

recipe-for-success-navigating-the-cloud-kitchen-revolution


Recipe for Success: Navigating the Cloud Kitchen Revolution 

1. What are cloud kitchens?

  • Cloud kitchens, also known as virtual kitchens or ghost kitchens, are delivery-only commercial kitchens that focus on takeout and online food orders.
  • They generally lack a sit-down area for dine-in customers, allowing them to operate with lower overhead costs compared to traditional restaurants.

2. Cloud kitchens market in India

  • In India, cloud kitchens have evolved significantly in recent years due to the growing demand for online food delivery services.
  • They offer cost-effective solutions for restaurant owners to expand their reach without the overhead costs of maintaining traditional brick-and-mortar establishments.
  • Moreover, they provide flexibility for experimenting with new culinary concepts and streamlining operations to meet the evolving needs of consumers in the digital era.

  • The cloud kitchen market in India is poised for a robust 15.5% CAGR growth, fueled by its inherent cost-effectiveness, expansive brand reach, and adaptability.
  • With streamlined operations and reduced overhead costs, cloud kitchens offer a lucrative avenue for entrepreneurs to establish and scale their culinary ventures, catering to diverse consumer preferences while leveraging digital platforms for wider market penetration.


3. Cloud kitchen operations

  • Cloud kitchens, with their exclusive online and delivery-based operations, demand a comprehensive array of technical tools such as online ordering systems, POS setups, inventory management software, and efficient delivery management systems.
  • Unlike traditional eateries, cloud kitchens heavily lean on online food delivery platforms for their business. Key Purchase Criteria (KPC) primarily revolve around order volume and the quality of interactions with delivery personnel when collaborating with these platforms.
  • These factors significantly shape the success and operational efficiency of cloud kitchen ventures.

4. Conclusion

  • Cloud kitchens are emerging as the future of the food industry, thanks to their convenience and cost-effectiveness.
  • ITC, currently operating three brands – ITC Aashirvaad Soul Creations, ITC Master Chef Creations, and ITC Sunfeast Baked Creations – is now focusing on expanding its cloud kitchen business, initially piloted in Bengaluru.
  • It will be intriguing to observe the industry's growth trajectory in the coming years.

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