Are cloud kitchens the future of food industry in India?

Cloud Kitchens since the pandemic times have seen an increase and are deemed to be the future of the food industry in India. Read on to know how risky, profitable, and different cloud kitchens are as compared to restaurants.

The pandemic has caused dining out to become a hesitance among the population across India. While restaurants are up and running, customers are still skeptical about eating out. In fact, most of the population would in fact prefer either takeaways/deliveries or a home-cooked meal. Thus, the increase in food ordering has resulted in an increase in the cloud kitchen business.

How profitable are cloud kitchens for India?

If statistics are to be believed, as per the data by Inc42, online ordering is amplifying at the Compound annual growth rate (CAGR) of 16 percent and is likely to increase to 5 billion dollars (aggregators plus Cloud Kitchens) by the year 2023. In fact, as per research, cloud kitchen business will see an increase in the market size to up to a whopping $1.05 billion by the year 2023.

How are Cloud Kitchens different?

The cloud kitchen model is a delivery-only service and no dine-in services exist in a ghost kitchen setup. Food is prepared and packed for the sole purpose of delivering food to customers.

While restaurants are bound to focus on the service as well as the ambiance, cloud kitchens do not have to make any such efforts. The only thing cloud kitchens need to make sure of is the quality of the food.

cloud kitchen business model and how it works

How is a cloud kitchen better?

In a cloud kitchen setup, you do not need to hire a lot of people and the work is easily done even after hiring just about a few people. You don’t need people who have to set tables or serve the customers with food and other accompaniments.

All this makes the investment to be on a smaller scale initially, as far as a cloud kitchen model is concerned. Moreover, cloud kitchens do not have to be located in premium areas. These ghost kitchens can be located anywhere and easily deliver food around the city.

What is the future of a Cloud Kitchens in India?

In India, Kitchens Centre is the most popular popular cloud kitchen space provider for entrepreneurs. In fact, India is one of the most potential markets for the development of a cloud kitchen revolution.

With digital India in full swing, almost everything is available online and so is food. Moreover, in this fast-paced techno world, most people do not have the time to even walk to a restaurant or brace the never-ending traffic just for the sake of eating out.

If you talk about statistics, more than 3 million people order food every day in India. With the pandemic, ordering in has become the new dining out. Thus, the cloud kitchen model is sustainable and here to stay. The customers have embraced the whole system of food getting delivered at their doorstep, which makes it even easier for cloud kitchens to come up and make their mark.

Are Cloud Kitchens a Risky Affair?

If you compare cloud kitchens to a restaurant, the risk factor is much lower. The best part about a cloud kitchen is that its growth potential knows no limits now. The operational costs are very low, and the demands of the customers can easily be met without shelling out too much from the investors’ pocket.

Are Cloud Kitchens a Profit-making machine?

The short answer is yes.  The cloud kitchen business requires less investment and ends up gaining more profit by delivering food to customers. They do not have to invest much into opening a restaurant or setting it up which saves a lot of operational costs right in the beginning. The only thing that is of primal importance is the quality and the taste of the food.

If you did not know, Kitchens Centre is the biggest cloud Kitchen space provider in India today. It started in 2019 and currently has over 60 locations operational in India across 17 cities.

If you would like to rent a space for a cloud kitchen, click here

What is the growth potential of Cloud Kitchens in India?

By the year 2024, cloud kitchens are expected to turn into a two-billion-dollar industry in the country.

In fact, the end of the pandemic is not going to be anytime soon. This means that most people will hesitate to go out on a regular basis just for dining. Ordering in will remain the priority in the coming months or even years until things get back to the pre-COVID-19 era.

If you come to see numbers, restaurants have already seen sales going down as much as about 90 percent. The change in consumer behavior has resulted in the cloud kitchens witnessing growth potential like never.

This article was originally published at and written by Ashwani Basantani