Cloud kitchens, also known as ghost or dark kitchens, facilitate delivery and take-out orders by professional chefs without the dine-in restaurant setup. They provide affordable commercial kitchen spaces for rent to food businesses and help reduce operational costs. \
The global Cloud Kitchen Market is estimated to be valued at US$ 100.46 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing trend of convenience has fueled the demand for cloud kitchens as they provide easier access to affordable food delivery options without the hassle of dining out. Major delivery platforms have also invested in cloud kitchens that allow restaurant operators to save costs associated with renting space and dining area maintenance while focusing only on food preparation and delivery. This has enabled small restaurants and food businesses to reach more customers through aggregators and delivery applications.
- Strength: Cloud kitchens have lower overhead costs compared to traditional brick-and-mortar restaurants as they don’t require dining area. This allows them to offer food at competitive prices.
- Weakness: Cloud kitchen operators face the challenge of customer acquisition as they don’t have their own storefront. They depend completely on third-party delivery platforms for orders.
- Opportunity: Growing popularity of online food delivery services is driving the growth of cloud kitchens. The market is expected to grow further with increasing smartphone and internet penetration.
Threats: Traditional restaurants are also setting up their own cloud kitchens or partnering with existing cloud kitchen operators. This increases competition for independent cloud kitchen companies. Strict food safety and hygiene regulations can also impact their operations.
The global cloud kitchen market is expected to witness high growth over the forecast period driven by changing consumer preference towards online food delivery. Majority of orders are coming from tier 1 and tier 2 cities in countries like India, Indonesia, Thailand and Philippines where online food ordering habits are rising rapidly among young population.
Regional analysis indicates that Asia Pacific holds the major share currently led by countries like India and China. This is attributable to growing younger population, increasing internet penetration and proliferation of online food aggregators. Countries in Southeast Asia are also emerging as high potential markets. North America and Europe are other prominent regions for cloud kitchens though their growth would be moderate compared to developing Asian markets.
Key players operating in the cloud kitchen market are Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zuul. Companies like Rebel Foods, Cloud Kitchens and Kitchen United have expanded to several cities within countries as well as globally through joint ventures and franchise partnerships. They offer standardized infrastructure utilizing smart kitchen equipment to restaurant brands and chains to setup satellite kitchens at lower costs compared to building separate outlets.