Insights for Entrepreneurs

How Cloud Kitchens are Reforming the Food Delivery Apps?

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Sri Varshini

29 Mar 2022 on Insights for Entrepreneurs · 5 min read

Food Delivery App

5 min read

Is there anyone who says no to opt for an app that offers food at your doorstep along with an oasis of deliciousness? When technology is zooming at its peak in every aspect, the food industry has never been an exemption. With rapidly growing online food delivery services, serving food straight out of the oven to your doorstep has become a revival. On top of it, since the start of the Covid-19 pandemic in March 2020, the growth of the online food delivery business has spiked to new heights.

Though the pandemic created an existential threat to restaurants, online delivery services became a saving grace to restaurant owners as well as users. As a result, many restaurants that delivered through online platforms were able to grow their delivery revenues exponentially. On the other side, the evolving consumer expectations and regulations in recent years have given rise to emerging technologies and reshaped this industry.

Despite the rise of food delivery apps creating lucky breaks in the food industry, the demand for on-location food preparation and dining seems to be the crux of the matter. Therefore, to taste the sweet smell of success, restaurant owners have to cut corners in the utmost possible ways. To overcome such hassles and create a win-win situation in this competitive industry, many food delivery apps have started to opt for the concept, “cloud kitchen”. Now, you will have a question, what is cloud kitchen, and what are its benefits? Then, settle down and stretch! Sticking on to this entire blog helps you gain enough insights about cloud kitchen.

What is Cloud Kitchen?

A cloud kitchen also referred to as a ghost/virtual kitchen is a commercial kitchen spacing set up used by food businesses to prepare foods only for delivery and takeout. In contrast to traditional brick-and-mortar locations, cloud kitchens help food businesses to run a profitable online food delivery platform with minimal overhead.

In recent days, cloud kitchens are becoming a great alternative to traditional brick-and-mortar restaurants. It offers more freedom for food business operators to focus on food preparation and product marketing rather than the administration and logistics handling which often seems to be a burden on food businesses. So, after witnessing the financial success of cloud kitchens, many food delivery businesses are opting for cloud kitchens. If you are still puzzled about the benefits in opting for the cloud kitchen, then it is worth looking more closely at how food delivery apps are benefitted from operating cloud kitchens.

Why is Cloud Kitchen a secret ingredient to grow your food delivery business?

Cloud kitchens with food delivery apps will streamline the complete order receiving process. Recent statistics reveal that 70% of orders in food delivery apps are prepared on cloud kitchen set up. Besides, a report from Statista stated that the Global Cloud Kitchen Market size is estimated to reach USD 71.4 Billion by 2027, with a CAGR of 12.0% from 2021 to 2027.

Here is a list of benefits of operating cloud kitchens for your food delivery business.

1. Reduced Cost To Set Up

Food businesses can largely save money by using virtual kitchens. Leasing a commercial kitchen space from a cloud kitchen provider minimizes the investment amount as food businesses no longer have to focus on expensive building construction, interior decorations, furniture, etc. Cloud kitchens are easy to set up within a few days or weeks whereas you have to spend a few months or years to set up a traditional restaurant.

2. Lower Overhead

Traditional restaurant owners face struggles in balancing overhead expenses like utilities, property taxes, staff salary, and miscellaneous maintenance costs. Cloud kitchens help to reduce such expenses and administrative hassles. Restaurants that opt for cloud kitchens often have as few as one to two cooks and will share the commercial space expenses with other tenants.

3. Added Convenience

The most essential thing that is required to run a successful food business is to satisfy customer needs and provide quality food. Cloud kitchens make this possible! As food businesses that are operating through cloud kitchens are free from handling the hassles of brick and mortar restaurants, they can give full focus on customer satisfaction and quality food for their customers.

4. Optimized Delivery Experience

Are you looking to build a brand for your restaurant? Cloud kitchens help you to expand your brand by operating delivery outlets in more than one location which can increase your revenue streams. Besides, you can even set up cloud kitchens along with your brick-and-mortar restaurants to handle food orders instead of over-burdening kitchen staff with online food delivery orders.

5. Meeting Customer Demand

Setting up a cloud kitchen helps you to meet your customers’ demands. As the popularity of online food delivery has skyrocketed among consumers, you can provide customers with quick meal options at an affordable price. Cloud kitchens facilitate this increasing demand for online food delivery by streamlining the delivery experience through effective logistics, operations, lower costs, and speedy delivery.

In this way, cloud kitchen restaurants are notching up in the food delivery industry in a full swing.

EndNote

From choosing the right location to arranging sufficient dining space, there is a large chain process to run a restaurant. On the other hand, missing a delivery or delivering the wrong items will lead to negative consequences. So, beyond the shadow of a doubt, food delivery app development coupled with setting up a cloud kitchen is a worthwhile investment you can opt for. On top of it, if you don’t have a food delivery app, and you’re looking to build a robust food delivery app, then feel free to reach us anytime.

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ABOUT THE AUTHOR

Sri Varshini is an enthusiastic Digital Marketing Specialist at Hitasoft Technology Solutions Pvt. Ltd. She is competent in writing persuasive content focusing on app development and delivers tech-savvy complex content in an easily understandable format.

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