Business

How cloud kitchen can kill small restaurants

Cloud kitchen are the latest revolution in the field of food and beverages industry. The concept of cloud kitchen is widely appreciated and accepted al over the world. It is surprising to know that this concept is in practice since the last few decades but it gained recognition only some years back. Is it a good development or is it a danger for the market? Let’s find out.

To understand the future of cloud kitchen and small restaurants, it is important to understand about their impact, benefits and disadvantages both on the stakeholders and the consumers. Cloud kitchen is known for it’s cost cutting technology and effectiveness. It reduces the overall production cost since it only needs an active warehouse to provide variety of dishes and gets the instant loyalty from the consumers because of the uniformity in taste. Cloud kitchen also benefits from the fact that they claim to maintain proper hygiene and contactless delivery, something which was the primary concern of the consumers during the pandemic. On the other hand, small restaurants are run by middle class businessman, who try to provide tasty food and their consumers are loyal as ever. It is however cannot be denied that small restaurants have to incur high cost of production as they also offer dining facilities.

Advantages of cloud kitchen

Cloud kitchens not only can provide variety of dishes, their biggest strength lies in the fact that they can provide food as quickly as possible. The impact of cloud kitchen is huge in the market and their demand has increased rapidly, especially after the pandemic. On the other hand, small restaurants had to fight really hard in order to survive the pandemic and their main revenue comes from dining instead of delivery. This is where they beat cloud kitchen. Cloud kitchen are generally the amalgamation of many delivery outlets and they can never provide the fun of dining together.

Future

In future, there are big opportunities for both small restaurants and cloud kitchen but small restaurants can lag behind in the race. It is because people are relying more on food delivery instead of dining. Gone are the days when people used to go out atleast once a week with their loved ones. In today’s times, they depend more on food delivery and there are many who order daily from food delivery apps. What small restaurants can do is they can expand their delivery vertical by keeping few items ready to deliver.

However, if the recent claims made by a food delivery company are to be believed, food can be delivered under 10 minutes which is a dangerous sign for small restaurants.

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