The global cloud kitchen market size was calculated at 43.1 billion in 2020 and is counted to reach 71.4 billion by 2027, with a CAGR of 12.0% from 2021 to 2027. Cloud kitchens are correspondingly known as dark or shared kitchens. Cloud kitchens are delivery-only kitchens, which can be possessed by a brand or third party working with different brands. Brands using cloud kitchens can also conduct virtual restaurants or brick-and-mortar restaurants. Moreover, on the flip side, brick-and-mortar restaurants utilize different cloud kitchens to deliver better efficient delivery. In addition, the rise of on-demand food delivery is developing a fundamental movement in the food and beverages industry. Therefore, cloud kitchens convey a crucial element of this process, as multiple large operators adapt their businesses to a rising online food delivery demand trend.
A cloud kitchen operates a commercial kitchen to prepare food for delivery or takeout only, with no dine-in consumers. It gives restauranteurs the possibility to scale, research new markets, or trial new concepts. Multiple restaurants use cloud kitchens as an exploratory space, optimizing staff and inventory while pushing new ideas. Cloud kitchens are created for speed, efficiency, and hierarchy, making it simple to work in a delivery restaurant with little risk and investment. They allow an entrepreneur to cooperate with many brands from a single location, increasing the possibilities of improved cost control in the existing infrastructure. It also provides greater flexibility. Cloud kitchens can continuously review what they provide by assessing what works and doesn’t. It results in more affordable costs, more efficiency, and decreased risks.
Low risk and low capital requirements:
The most important advantage of the cloud kitchen model is removing costs such as restaurant space, ambiance, furniture, costly silverware, electrical institutions, etc. All of them are destroyed, departing just a basic minimum of expenditures for culinary personnel, cooking reserves, kitchen tools, and keeping expenses such as power bills. Cloud kitchens can efficiently finance new menus and elements by virtually utilizing their resources. Restaurant proprietors and operators can modify their menu elements, establish competitive prices, and operate their businesses much more efficiently using real-time consumer data. Cloud kitchens also deliver convenience to customers to order from anywhere at any time. According to the National Restaurant Association consumer trendS 2020, 52% of customers believe ordering takeaway or delivery meals is essential to their life course.
With the opening of different food delivery apps, the idea of online food delivery has earned more acceleration. Consumers choose food delivery over dine-in, helping the growth of the cloud kitchen market in the coming years. In addition, these food delivery apps are encouraging restaurant proprietors to move to cloud kitchens from traditional kitchen locations. The rising internet penetration and increased smartphone adoption among the customers also encourage restaurant owners to choose cloud kitchens rather than establish a kitchen facility.
There has been a rise in the workforce in different demographic segments. As a result, the maturity of consumers worldwide, particularly in developed countries, look out for food products that can be prepared and served within the tiniest capacity of time. Thus, in turn, different fast food products have witnessed significant demand over the past couple of years, which also boosted the growth of the cloud kitchen market. Moreover, the hectic work schedule of millennials and Gen Z and the rise in the market for prepared-to-eat products are driving the cloud kitchen market growth. Hence, the active lifestyle being embraced by most consumers causes cloud kitchen products to detect growth in terms of volume sales.
Absence customer personal dealings
As everything is through the internet, the cloud kitchen idea, customers do not interact directly with the restaurant and absence a relationship among them. Some elements that connect a person with a restaurant are a personal passion, beautiful ambiance, and interaction with the restaurant staff. These factors encourage the customers to visit the restaurant again and make a personal bond with the staff, which increases the restaurants’ sales.
Before the covid-19 explosion, there had been increased users on various social media sites with the rise in internet penetration. Considering this, most of the key players in the cloud kitchen market strategize on promoting their products and services on these social media platforms. Social media marketing is one of the introductory approaches adopted by various companies and industries to promote their product offerings. Thus, the advancement in social media transaction is anticipated to deliver a lucrative possibility for the development of the cloud kitchen market and ultimately increase its customers. Cloud kitchen especially delivers fast food products understood for their taste, distinctive product offerings, and comfortable availability, which attract the target customers.
The COVID-19 outbreak has affected different sections of society. The food industry has noticed considerable challenges due to the pandemic. The dine-in restaurants that make the two-thirds of the food industry were negatively impacted and encountered massive financial failures due to the imposed regulations like lockdown. In addition, the assessed lockdown in different nations across the globe has sustained the food delivery service model to gain more acceleration in the industry. Since the cloud kitchens manage wholly on the delivery-only model, restaurant owners can easily carry on their businesses and better serve their customers. The market for cloud kitchens worldwide has grown due to the pandemic, as food delivery was permitted even throughout complete lockdowns. The customer choice has also changed from dine-in to food delivery, supporting the growth of the cloud kitchen market.
After the covid-19 explosion, the rising demand for digital ordering solutions favors market growth. Because of work from home, people choose food delivery options more; individual ghost kitchens with their online ordering solutions also notice increased adoption. A dedicated online ordering solution drives consumers directly to the business and reduces aggregator’s commission, which could account for anywhere around one-fifth of the overall cloud kitchen costs. Improvements in technology also allow restaurateurs to function more efficiently and increase their profit margins. For instance, restaurateurs could use advanced devices to derive consumer insights to analyze and update their menu based on popularity and replace items with a higher margin item.
By Type Segment, the market is characterized into Independent Cloud Kitchen, Commissary/Shared Kitchen and Kitchen Pods. The independent cloud kitchen segment controlled the market growth with the maximum income share in 2020. This segment is predicted to restart this trend during the forecast period due to the increasing number of standalone trademarks that benefit customers from one place. In addition, separated cloud kitchens mainly focus on consumers who choose one cuisine type and depend on third-party channels for food delivery.
By Nature Segment, the franchised segment controlled the cloud kitchen market in 2020, accounting for more than 60% of the revenue share. The increased number of franchised restaurants across the globe is pushing the segment’s growth over the forecast period. The favor of international cuisines and tailored foods among customers encourages operators to support popular brands. Furthermore, showing such restaurants involves fewer risks as the franchisor provides training and support ranging from supplies and equipment to staff training and marketing. Thus, advantages such as the minimal threat of establishing a cloud kitchen and gaining a multiple profit share are foreseen to drive the segment’s growth.
The rage of cloud kitchens is more noticeable in the Asia Pacific region, which is expected more than 60% of the global market in 2020. The increasing movement of cloud kitchens across nations like China and India drives the regional market. Increasing disposable incomes and the improved adoption of smartphone applications among millennials are key elements directing online food delivery services. Additionally, the market for online food delivery services advanced during the COVID-19 pandemic when dine-in restaurants were closed, which led to several cloud kitchens in the region, resulting in regional market growth.
Companies include are Dahmakan, DoorDash Kitchen United, Kitopi, Rebel Foods, Zuul Kitchen, Inc., Starbucks Coffee Company, Ghost Kitchen Orlando, Clouds Kitchen, Swiggy and other prominent players.
|Market Size Value in 2021||USD 43.1 Billion|
|The revenue forecast in 2028||USD 71.4 Billion|
|Growth Rate||CAGR of 12.0 % from 2020 to 2027.|
|Forecast period||2022 – 2028|
|Region covered||North America, Europe, Asia-Pacific, South America, and Middle East & Africa|
|Key companies Profiled||Dahmakan, DoorDash Kitchen United, Kitopi, Rebel Foods, Zuul Kitchen, Inc.,|
Starbucks Coffee Company, Ghost Kitchen Orlando, Clouds Kitchen, Swiggy are
the major key players.
A cloud kitchen operates a commercial kitchen to prepare food for delivery or takeout only, with no dine-in consumers. It gives restauranteurs the possibility to scale, research new markets, or trial new concepts.
The major factors for driving the growth for the global cloud kitchen are multiple large operators adapting their businesses to a rising online food delivery demand trend.
The global cloud kitchen market size was calculated at 43.1 billion in 2020 and is counted to reach 71.4 billion by 2027, with a CAGR of 12.0% from 2021 to 2027
The Asia-Pacific region is expected to have the largest share in the global cloud kitchen.
Dahmakan, DoorDash Kitchen United, Kitopi, Rebel Foods, Zuul Kitchen, Inc., Starbucks Coffee Company, Ghost Kitchen Orlando, Clouds Kitchen, Swiggy are the major key players in the global cloud kitchen.