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Cloud Kitchen Market: Overview

The expanding dining and food delivery industry coupled with an increase in the disposable income of many individuals around the globe will prove to be growth boosters for the cloud kitchen market during the forecast period of 2021-2031. The preference for online food services has increased exponentially over the years. This factor will also serve as a growth accelerator for the cloud kitchen market.

Cloud kitchens enable the use of unutilized kitchen capacities to the fullest and also assist in co-creating delivery brands. Furthermore, low rent-to-revenue ration increases the interest of many individuals in the cloud kitchen space. Based on these aspects, the influence of cloud kitchens is projected to rise considerably. All these factors bode well for the growth of the cloud kitchen market.

A cloud kitchen, also known as a dark kitchen or ghost kitchen, is a space that generates revenues only through food delivery orders. It has no dine-in or seating capacity. It serves as a delivery and production unit with a space limited to just food preparation. Cloud kitchens are gaining momentum because an individual, with minimum investment can reap maximum gains if the taste and quality of the food is good.

Cloud kitchens are of three types: The first type is the independent kitchen where a single operator manages a single kitchen. The second type is the commissary kitchen, where multiple food and beverage brands operate in a single commercial-grade kitchen and the third type is kitchen pods. These pods are outfitted kitchens in small movable containers..

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What is the Competitive Landscape of Cloud Kitchen Market?

The cloud kitchen market is fiercely competitive. The benefits of cloud kitchen and the advent of the COVID-19 pandemic have led to an increase in the number of new entrants across the cloud kitchen market landscape. In addition, the geographical location doesn’t matter as long as the kitchens are accessible by the food delivery executives. Thus, the entry of new players has widened the competitive arena of the global market.

Many well-established food restaurant chains are also penetrating the cloud kitchen space. For instance, Wendy’s, one of the leading fast food restaurant chains, announced its collaboration with a startup Reef Technology to open more than 690 cloud kitchens across the U.S., Canada, and the U.K. Such developments help in the overall development of the cloud kitchen market.

Some well-established players in the cloud kitchen market are Kitchen United, Dahmakan, Zuul Kitchens, Kitopi, and Rebel Foods.

How has COVID-19 Impacted Cloud Kitchen Market?

The COVID-19 pandemic has a positive impact on the growth of the cloud kitchen market. As the pandemic struck the globe with high transmission rates, the demand for home food delivery skyrocketed. All the restaurants and fast food chains were ordered to be closed owing to the lockdown orders. The frequent lockdown and the loss incurred by the restaurant owners due to the shut down for indefinite periods forced them to opt for cloud kitchens. With uncertainty about restaurant opening in various parts of the world, cloud kitchens are expected to thrive in the coming years.

What are Key Trends in Cloud Kitchen Market?

D2C Channels to Bring Profitability

Direct-to-consumer (D2C) channels such as social media, websites, and digital messaging platforms will enable cloud kitchen owners to market their dishes in a good manner. These aspects will churn considerable growth for the cloud kitchen market.

More Focus on Customer Experience

The players in the cloud kitchen market are striving to provide a good experience to their consumers by using good packaging, personalization, and convenience. This factor will have a profound impact on the growth structure of the cloud kitchen market.

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What is the Regional Landscape of Cloud Kitchen Market?

North America’s cloud kitchen market is estimated to observe a dominant stance during the forecast period. The growing popularity of online food delivery among the regions will serve as a promising growth generator. Asia Pacific is also estimated to observe rapid growth due to the growing popularity of cloud kitchens in densely populated countries like India and China.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Cloud Kitchen Market