The Covid-19 pandemic has nurtured the growth of cloud kitchens all over the world. India is no exception to this. But what are cloud kitchens and what is the reason behind buzz around them? Read the story to find out.
Crux of the Matter
In News
According to a report published by RedSeer, India’s cloud kitchen industry is expected to grow to $2 billion by 2024.
What Are Cloud Kitchens?
Also known as Dark or Ghost kitchens, these kitchens do not have dine-in services. Under one kitchen, multiple brands may operate. Food orders are carried out by their own delivery riders or via third party food delivery aggregators like Zomato or Swiggy.
Profitability
Kabir Suri, chief of National Restaurant Association of India (NRAI) recently reported to Business Today that income from food delivery business currently stands at 40%. It was between 5%-6% in pre pandemic era.
Benefits
Low capital requirement.
Low entry and exit costs.
Less recurring expenditure.
Recently, demand for plug and play kitchens has increased. Firms like ‘Book Your Kitchen’ and ‘Speciality Group of Kitchens’ provide ready-to-move- in kitchen infrastructure. Users can simply rent the spaces, get their tools and manpower, and start their ghost kitchen.
Curiopedia
Ghost Kitchens, India's first cloud kitchen fund and incubator was launched in 2019. Restaurateur Karan Tanna launched the company that invests in companies that focus only on home delivery.