Cloud kitchens, also known as virtual kitchens or ghost kitchens, work exclusively for food deliveries and have no storefront. While the concept of cloud kitchens has been for several years, the emergence of Covid-19 in 2020 was the most prominent propeller for this industry, as stay-at-home orders got enforced for public safety. With perks like reduced rentals & overhead costs, less initial investments for setup, & minimal manpower required, as compared to a dine-in, various restaurants are adopting cloud kitchen models to cater to the ever-increasing online food orders worldwide.
The Global Cloud Kitchen Market is expected to grow at a CAGR of around 12.42% during the forecast period, i.e., 2023-28. Most of the market expansion would be propelled by the rising disposable incomes, especially of the young generation, coupled with lifestyle changes and growing consumer inclination toward fast food & snacks. Consequently, the ever-increasing online food delivery orders are leading to fewer visitors for dine-in, i.e., instigating restaurateurs worldwide to shift to delivery-only models and, in turn, driving the cloud kitchen industry.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: USA, Canada, Mexico|
|South America: Brazil, Rest of South America|
|Europe: The UK, Germany, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Indonesia, Thailand, Rest of Asia-Pacific|
|Middle East & Africa: Saudi Arabia, UAE, Egypt, Turkey, Rest of Middle East & Africa|
|Key Companies Profiled||Kitchen United, Rebel Food, Doordash Kitchen, Zuul Kitchen, Keatz, Kitopi, Dahmakan, Starbucks (Starbucks Kitchen), Zomato, Foodpanda, GrabFood, GoFood Kitchen, Swiggy, KitchenConnect, GrabKitchen, Avane Cloud Kitchens, Others|
|Unit Denominations||USD Million/Billion|
The lack of consumer interest in home-cooked meals due to the corporate culture & long working hours is the prime reason behind the rapidly surging online food orders. More and more people are becoming aware of the benefits of cloud kitchens over conventional models, such as better profit margins and enhanced flexibility. Various strategic alliances are also being carried out between prominent brands to improve ghost kitchen services, which, in turn, is boding well for the industry.
The integration of inventory management systems, KDS (Kitchen Display Systems), and POS (Point-of-Sale) to improve communication, fast-track various kitchen operations, & prevent delays in order processing is also expanding the industry. Moreover, the increasing utilization of technologically advanced tools by restaurateurs in order to derive consumer insights to analyze & update their menu as per popular choices and incorporate higher margin items would also create profitable prospects for the Global Cloud Kitchen Market in the coming years.