What is cloud kitchen meaning? Is it related to software, or is it a new restaurant? Well, cloud kitchen is a restaurant with no physical storefront. That means that people are operating in a centralized commercial kitchen. They partner up with third-party delivery service apps such as Uber Eats and Grubhub to distribute their food offering to the public.
Who do you visit these cloud kitchens?
Simply you can not visit a cloud kitchen because they are restaurants without storefronts and the only way you can consume their products is by ordering through these different apps mentioned above. Their focus is explicitly on mass production, and they just want to produce a ton of items and services through all these delivery apps.
Now, you might be thinking, is this something you want to invest your time and energy into? 100% yes, as by the end of this year, this food delivery service industry will be more than 70 billion dollars. So, yes, this is just in the infancy, the very beginning of the trend. The ex-CEO of Uber has raised more than 400 million dollars just this last year into his cloud kitchen.
Pro and cons of cloud kitchen
This model is so popular right now because of all these pros. The advantage of not needing a physical storefront, not needing to own your equipment, not going through all the business license infrastructure, and months of getting locked down into space and renovating the space. There are no worries of talking to licenses, talking to regulators to get your rights so that you can operate. You do not need any of these because you can get just into the cloud kitchen. Ghost kitchen is the same thing, and you just need to rely on the third-party delivery service apps for distributing the food.
The only con to running a ghost kitchen is no visibility. You have no way of doing promotion or marketing with walk-in traffic. Now, for some of you, you do not care about that you do not care about the walk-in traffic, which is okay, but a major con is a fact that you are relying on your real lifeline, the bloodline, you are being held by the neck of these food delivery apps. What that means is that if they decide to favour a particular restaurant,, you are most likelye going to be out of business.