Dublin, March 04, 2022 (GLOBE NEWSWIRE) — The “Worldwide Cloud Kitchen Industry” report has been added to from ResearchAndMarkets.com offer.
Cloud Kitchens Market was valued at US$32.460 Billion in 2019 and is expected to grow at a CAGR of 12.28% during the forecast period to reach a market size of US$73.024 Billion by 2026 .
A cloud kitchen, also known as a Ghost Kitchen, is a place where food is prepared and delivered to customers’ doorsteps by taking orders over the phone or through online ordering systems. They mainly do not provide catering services. They are primarily involved in food preparation and delivery or have partnerships with food ordering websites such as Swiggy, Zomato, Dine Out and others.
Cloud kitchens are designed for speed, efficiency, and scale, making it simple to operate a delivery restaurant with little risk and investment. They allow an entrepreneur to collaborate with many brands from a single location, increasing the chances of improving cost management in the existing infrastructure. It also offers greater flexibility. Cloud kitchens can continually review what they provide by evaluating what works and what doesn’t. All of this translates into lower costs, increased efficiency and reduced risk.
However, with each consecutive shutdown, there has been a significant increase in the number of cloud kitchens. Many home businesses and cloud kitchens have started and registered as food aggregators, increasing the competition in the market. Due to the lack of a physical storefront, it is difficult to cultivate a loyal and regular fan base for the brand. The curator’s goal of providing a boxed experience is also a hindrance because it depends not only on the packaging but also on the care with which the food is delivered.
In India, well-known brands such as Punjab Grill, Pino’s Pizza and Zambar, as well as international fried chicken giant Kentucky Fried Chicken, are aiming to establish cloud kitchens in order to expand in the country. Additionally, in China, Starbucks has partnered with Alibaba to operate its Star Kitchen cloud cooking brand from the latter’s Hema supermarkets in Hangzhou, Shanghai and Beijing.
Low risk and low capital requirements
The most important benefit of the cloud kitchen model is the elimination of costs such as dining space, ambience, furniture, expensive silverware, electrical appliances, etc. All are eliminated, leaving only minimal expenses for culinary staff, kitchen supplies, kitchen equipment, and some maintenance expenses such as utility bills. Cloud kitchens can easily invest in new menus and ingredients using their resources efficiently.
Restaurant owners and operators can change their menu ingredients, set competitive prices, and run their business much more efficiently if they use real-time consumer data. Cloud kitchens also allow customers to order from anywhere at any time. According to the National Restaurant Association’s 2020 Consumer Trends, 52% of diners believe that ordering takeout or delivery is essential to their lifestyle.
A strong influx of cloud kitchens
The pandemic has led to an increase in the number of cloud kitchens. Especially after a nationwide lockout and layoffs, the number of home-based businesses and cloud kitchens has increased as it is one of the most profitable ways to generate profits in the industry. food.
However, this created the major problem of keeping costs down while trying to establish a presence in a relatively crowded market. The majority of customers are so price-sensitive that loyalty takes a back seat. It is necessary to get the best deal which increases price competition. This in turn triggers a loop of offering more and more discounts in order to attract customers.
Impact of COVID-19
The Covid19 pandemic has negatively impacted the food industry but presented an opportunity for cloud kitchens. According to the National Restaurant Association, the restaurant industry lost an estimated $25 billion in revenue and more than 3 million jobs in the first 22 days of March 2020. Demand for cloud kitchens has increased dramatically over the past the last year or so, as restaurants were forced to close due to lockdowns. With consumer footfall all but gone overnight, restaurants have been able to operate by implementing a cloud kitchen approach. Research by the National Restaurant Association found that 54% of restaurateurs have opted for entirely offsite services, while 44% have been forced to close temporarily. While the initial idea was to offer take-out or delivery, many operators are discovering how this approach can add value to their business in a variety of ways.
- Franklin Junction partnered with EAT in May 2021 to target the MENA region for global expansion. The collaboration will allow current kitchens in the MENA region to become Franklin Junction Host Kitchens, and restaurant brands based in the MENA region or the United States to establish global reach through the relationship.
- Mad Grass, a Jakarta-based startup, opened the world’s first collaborative vegan dining and cloud kitchen space in September 2021.
- CloudKitchens, a shared kitchen company launched in 2015 and backed by Uber co-founder Travis Kalanick, was set to launch in Brazil in the first half of 2020. Earlier that year, the Saudi sovereign wealth fund granted the company $400 million.
Market segmentation :
By business model
- Autonomous cloud kitchen
- Multi-brand Cloud Kitchen
- Commissioner’s kitchen (aggregator)
- Outsourced cloud kitchen
- Coworking cloud kitchen
By order source
- Customer call
- Delivery app
- The cabinet app
- Aggregate app
- North America
- United States
- South America
- Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- Asia Pacific
- South Korea
Main topics covered:
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1. Market factors
4.2. Market constraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining power of suppliers
4.3.2. Bargaining powers of buyers
4.3.3. The threat of substitutes
4.3.4. The threat of new entrants
4.3.5. Competitive rivalry in the industry
4.4. Industry Value Chain Analysis
5. CLOUD KITCHEN MARKET, BY BUSINESS MODEL
5.2. Autonomous cloud kitchen
5.3. Multi-brand Cloud Kitchen
5.4. Commissioner’s kitchen (aggregator)
5.5. Outsourced cloud kitchen
5.6. Coworking cloud kitchen
6. CLOUD KITCHEN MARKET, BY ORDER SOURCE
6.2. Customer call
6.3. Delivery app
6.3.1. The cabinet app
6.3.2. Aggregate app
7. CLOUD KITCHEN MARKET, BY GEOGRAPHY
7.2. North America
7.2.1. United States
7.3. South America
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.5.2. United Arab Emirates
7.6. Asia Pacific
7.6.3. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Key Players and Strategic Analysis
8.2. Emerging players and lucrative market
8.3. Mergers, acquisitions, agreements and collaborations
8.4. Supplier Competitiveness Matrix
9. COMPANY PROFILES
9.1. KLC Virtual Restaurants
9.2. The Food Corridor (Fort Collins, CO)
9.7. Franklin Junction
9.11. Travis Kalanick
9.12. Karmic cooking
For more information on this report visit https://www.researchandmarkets.com/r/84rx5t
Global Cloud Kitchen Market