The concept of cloud kitchen involves cooking and packing up foods for online delivery and then shipping them out to customers. This is a more efficient way to offer food at lower costs as opposed to opening a dine-in restaurant. Typically, a cloud kitchen is set up in a large warehouse and is comprised of numerous stations (like mini-restaurants) with stainless steel prep tables, hood vents, stoves, ovens, sinks, etc. These kitchens are optimized for ease of production and reliability of food quality upon delivery.
Market Dynamics:
Cloud kitchen market has witnessed strong growth in the last few years due to the increasing adoption of food delivery apps, growth in disposable income amongst consumers, and changing lifestyle. Moreover, increasing tech-savvy ordering system is also expected to propel market growth. Furthermore, growing demand for international food is further anticipated to foster the market growth.
However, a high reliance on food aggregators and limited customer variety are expected to act as restraints for the market. Also, competition from dining out and quick service restaurants is expected to hamper the market growth.
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