While the pandemic locked down the roads, the food industry switched to the cloud. And the best proof of this is your order history on Zomato and Swiggy. Know more about this transition in this blog.
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Our eating patterns have drastically changed over the years. The dining experience that earlier meant restaurants with luxurious cutlery and ambient music has now shifted to doorstep delivery of food parcels.
Though the pandemic acted as the main catalyst in setting this trend, several other factors fuelled the shift. Increased internet penetration, integration of technology and business, the rise of app-based food delivery, and online aggregators – all contributed to the mushrooming of cloud technology in the F&B sector.
Enter cloud kitchens!
Curious to know more? Keep reading!
Cloud Kitchens – cloud technology satiating your cravings
Technology has revolutionized almost all aspects of our day-to-day lives. And cloud kitchens are bringing this revolution to the food industry. To put simply, cloud kitchens are delivery-only restaurants with no physical space for dine-in.
They take orders through phone calls or mobile apps and get professional staff to prepare food. Once the chefs prepare the order, they send it for packaging and then delivery. While a few restauranteurs use their own delivery fleet, others rely on food aggregators for delivery.
Simple, isn’t it?
When did cloud kitchens take flight? Who onboarded it?
The F&B industry is not unfamiliar with the concept of home delivery or food takeaway. It has long been in existence in the form of ‘dabba service’ and food trucks. However, it wasn’t until recently that cloud kitchens gained a strong foothold.
Recent reports indicate that food delivery orders went up by over 150% from 2019 to 2020. Given the trend, food start-ups, delivery-optimized restaurants, caterers, meal preparation companies, and popular food chains – all started turning towards cloud kitchens.
According to reports, the Indian food delivery market is expected to grow by over 30% CAGR in the next five years – to 13billion USD by 2025. And this growth predicts the expansion of the cloud kitchen industry from 400 USD in 2019 to 2 million USD by 2024.
What is paving the way for this growth?
Cloud kitchens supersede traditional brick-and-mortar restaurants when it comes to food preparation at minimized costs. There are no commitments for construction and inspection compliances, nor any headache of signage and prints. Thus, you can be up and running within weeks. Other than that:
You can swap your menu in no time
As cloud kitchens are app- or web-based, you can change your menu focus whenever you want. If an ingredient is too expensive or no longer accessible, you can swap it and fashion the dish with a new name. If any dish is not popular, you can scrap it from your menu. There are no printed menus, after all!
You don’t need to pay for fancy lighting and décor
Since cloud kitchens do not involve dining, it eliminates expensive elements like décor, dinnerware, signage, and hosts. You can just focus on the food quality and save on infrastructural costs.
You can experiment with new dishes
Cloud kitchens allow food entrepreneurs to experiment with new ideas and concepts. You can try, fail, rethink, retry, and repeat. Nobody will sue you for serving chocolate pizzas with mayo or launching mushroom-flavored ice cream.
You can operate as Dominos and Subway simultaneously
Thanks to custom-built spaces and optimized delivery processes, cloud kitchens run very efficiently. You can operate as several brands as one. You can batch-prep ingredients for different menus and divide other resources.
How does technology come into the picture?
Low food prices are not the sole profit driver of cloud kitchens. Since customer acquisition is achieved via digital platforms, they rely heavily on technology that leverages the entire business operations.
How? Let’s see.
Automation is the key to cut down costs
No matter where you run your kitchen, purchasing, inventory counts, invoicing, and food cost calculations will always be there. All this is software-ready stuff that apps can perform better than your staff.
It is tech that does the integration and streamlining
Believe it or not, you need a tech solution to handle as many of your business needs as possible, it’s better to have a single tracker for all your operations than have a breed of apps. This not just saves your time and energy but many bucks too.
Cloud makes expansion easy
If you store everything – inventory, procurement, SOPs, employee training, recipes, and allergen sheets – in one place, you save yourself from the hassles during expansion. Even if you switch locations or get new hires, you have everything packed already.
Order Order Mise En Place!
You can prepare visual recipes, training videos, and tech sheets and have them ready for every staff member and location. This can make food preparation uniform and ingredient costs lesser. To put it simply, all your salads will have an equal number of tomatoes.
Are you ready to take off on the cloud?
If you are ready to get your cloud kitchen up and running, you can get in touch with us. CloudThat offers cloud consulting services to a variety of industries. We won’t mind adding hospitality to the list.
Want to know more about us? We are just a click away.
CloudThat is a pioneer in the Cloud Computing training realm, we are a Microsoft Gold Partner, AWS (Amazon Web Services) Advanced Consulting Partner, and Training partner. Also, we are Google Cloud Partners delivering best-in-industry training for Azure, AWS, and GCP (Google Cloud Platform). We are on a mission to build a strong cloud computing ecosystem by disseminating knowledge on technological intricacies within the cloud space.