Jan 30, 2020
Seeing the importance and market of cloud kitchen big retailers and restaurant operators are planning to enter the segment. An area so far dominated by online aggregators such as Zomato, Swiggy and smaller caterers and restaurants.
A cloud kitchen is a takeaway outlet with no dine-in facility. It serves as a production unit with a space for the preparation of food.
Hence the cloud kitchen business is going to become even more competitive as India’s largest quick-service chain Jubilant FoodWorks, which operates Domino’s Pizza and Dunkin Donuts in India, is planning to start its cloud kitchen business for not only Domino’s Pizza but also for Chinese cuisines.
In fact to tap the online food delivery market, even Kishore Biyani’s Future Group is also planning to roll out its own cloud kitchen to sell meals for RS 40 on Swiggy and Zomato.
Cloud kitchens are the future of the eating-out industry and are growing at faster globally as compared to other segments of the restaurant industry.
Impresario Entertainment and Hospitality, that runs popular restaurant chains such as Social, Smoke House Deli and Salt Water Café, is also “piloting” into cloud kitchen space.
Redseer consulting finds that the food ordering market in India will grow by just 35% in 2020, reaching 1.5 billion orders and the consulting firm estimates that India’s food delivery market to touch $2.5-3.5 billion by the end of 2021.
As the app-based delivery business is growing in India, restaurants find it cheaper to service online orders from cloud kitchens mainly located in nondescript low-rented locations than delivering from high-rented restaurants that also causes inconvenience to dinners in restaurants.
Online delivery companies are heavy on data and their algorithm is helping them with the perfect locations to open cloud kitchens.
With the amount of data available with Swiggy and Zomato where they can advise you to open in locations that are absolutely viable for deliveries and whether there is a market for any particular product.