Writer: Nuttawut Kulkaew

Editor: Wittaya Wonglor

Cloud kitchens are restaurants without customers, focused on deliveries. The business model removes the costs of a storefront and waiting staff. With less initial capital, the business can grow and add branches fast.

Cloud kitchens should be near communities to facilitate transport. Restaurants in the same area can partner and use food delivery services together, reducing transport and environmental impact.

The cloud kitchen market in 2019 was valued at $32.460 billion but is set to a grow at 12.28% per year.

There are 3 reasons for the sector’s rapid growth:

1. Consumers since the pandemic prioritize comfort and are used to ordering food and groceries through delivery services.

2. Stores are coming together after the pandemic to create strong platforms that meet consumer needs locally.

3. Last-mile logistics have improved with more local supply chains, bringing food from nearby restaurants for speedy delivery.

Cloud kitchens very with context and area. They might serve a single brand or several. There might be an open space with branding. But orders, payment, and liaison between the restaurant, the customer, and delivery staff may be done through the store's own channels or the delivery company’s software and apps.

Implications for the future:

- Changing consumer behavior will help create a growing economy in food deliveries as well as high competition between restaurant groups and brand management services. Restaurants need to focus on this area to keep their customers and reach new ones. Food deliveries will become another important factor in maintaining a restaurant’s image.

- The hospitality and gastronomy industry will change fast. Customers expect more and more, so the quality of food and service must continue to improve.

- Managers of commercial real estate like malls must adjust their experience design strategies as consumers want to stay home.

- Decentralized Autonomous Organizations (DAOs) will play a role in this hospitality industry business model to unite emerging small restaurant groups that want to target users of the digital economy who want to pay with crypto.

Reference:

- https://grubbrr.com/ghost-vs-cloud-vs-dark-kitchens-whats-the-difference/

- https://www.researchandmarkets.com/reports/5547546/cloud-kitchen-market-forecasts-from-2021-to-2026?utm_source=GNOM&utm_medium=PressRelease&utm_code=xxx78f&utm_campaign=1667886+-+Worldwide+Cloud+Kitchen+Industry+to+2026+-+Featuring+Kitopi%2c+CloudKitchen+and+Muy+Among+Others&utm_exec=jamu273prd

- https://www.forbesindia.com/article/new-year-special-2022/why-cloud-kitchens-need-to-scale-up-smart-not-fast/72951/1

- https://doi.org/10.1016/j.techfore.2022.121629

- https://www.cbc.ca/news/canada/british-columbia/hot-demand-for-ghost-kitchens-rides-on-popularity-of-food-delivery-apps-during-pandemic-1.6214802

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