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.
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.
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.
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.
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.
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.