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Cloud Kitchen: The New Normal

Food industry trends are changing. These factors, such as rising startup costs, burdensome regulations, and COVID-19, threaten the restaurant sector in the food industry. Cloud kitchens, also known as ghost kitchens or virtual kitchens. It serves as commercial kitchens in which food businesses prepare menu items for delivery or takeout.

The cloud kitchen enables food businesses to create and deliver food without the costs of traditional locations.

Traditional vs. cloud kitchen

The cloud kitchen model offers traditional restaurant conveniences and lower operating costs. Some of the primary differences between traditional restaurants and cloud kitchens are:

Profit margins:

A company’s profit margin is what it earns after considering operating expenses such as rent, employee salaries, monthly utilities, and general maintenance. Restaurants with traditional overhead and startup costs tend to have smaller profit margins than cloud kitchens.


Typically, a restaurant requires hosts, servers, chefs, bartenders, maintenance workers, and a manager. Ghost kitchens require only managers to oversee the facilities and staff to prepare the food. The rental facility provides maintenance personnel. They won’t have any in-person customers to deal with unless people offer order pickup.

Startup Costs:

Restaurants require extensive capital to open – for salaries, kitchen equipment, furniture, and utilities, as well as high lease rates and mortgages. Cloud kitchens typically come with administrative features such as waste collection, janitorial fees, and kitchen equipment included in the fixed cost.

Administrative Work: A typical restaurant has several sections, such as a dining room, a host stand, a waiting area, and restrooms. A larger space means higher expenses and more maintenance. Cloud kitchens offer users private commercial kitchens, but they share the costs of the communal elements with other users. Cloud kitchens don’t require spaces like traditional restaurants. Instead, the chef’s staff could use the space for functional areas.

Benefits of Cloud Kitchen

The concept of virtual kitchens (also called cloud kitchens or ghost kitchens) has become a popular alternative to traditional brick-and-mortar restaurants. The use of ghost kitchens liberates users’ attention to food preparation and product marketing and minimizes the administrative and logistical hassles that plague most food businesses.

These are a few of the reasons to rent a virtual kitchen for your business:

Meeting customer needs: Clients can easily customize their kitchens using cloud kitchens. Consumers are demanding quick and affordable meals online, which has increased the popularity of food delivery. Cloud kitchens enable online food delivery by providing efficient logistics, lowering costs, and delivering the most up-to-date technology around.

Cost-Effective: The high costs of utilities, property taxes, payroll, and maintenance have made it difficult for traditional restaurant owners to stay afloat. Cloud kitchens take care of these costly and time-consuming administrative tasks. The restaurants that operate in cloud kitchens employ just one or two cooks and share expenses with other tenants.

Optimum delivery experience: Cloud kitchens let customers increase their revenue streams and expand the brand by enabling deliveries for their entire business from one location. The cloud kitchen allows brick-and-mortar restaurants to accommodate higher demand without overburdening their kitchen staff.

The New Normal

As the adage goes, in the midst of every crisis is a great opportunity. Despite slowing down the global economy, Covid-19 has changed how businesses conduct themselves and the economic environment. Astute Analytica predicts that the cloud kitchen market will increase by 13.4% over the next five years due to increased demand in parts of China and India, which account for 50% of the market share. 

Cloud kitchen business models have offered new opportunities to food companies that have identified changes in consumer lifestyles. 

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