How Cloud Kitchens Save Restaurants During Pandemic
Businesses all over, are readjusting to a new normal that has been brought on by COVID-19, especially the restaurant industry.
According to a study found on restaurant.org, from the start of March 2020, workers in the traditional restaurant industry have lost an accumulated 3 million jobs and businesses have lost $25+ billion in sales. Roughly 50% of restaurant operators anticipate having to lay off more people in May.
With that being said, we can still remain hopeful through all of this chaos. A new business model could be the solution for online food delivery companies in Dubai, such as Sweetheart Kitchen, which adhere to the cloud kitchen model as a means to advance their production.
Keep reading below to see how companies like Sweetheart Kitchen are using the cloud kitchen concept to their advantage.
What Are Cloud Kitchens?
Before we discuss the benefits of companies using cloud kitchens for their online food delivery companies in Dubai, it’s important to understand how a cloud kitchen works.
Cloud kitchens also referred to as virtual or commissary, are leased spaces used to produce food, specifically for online ordering and delivery. The cloud kitchen concept heavily differentiates from the standard restaurant model.
- Don’t have a physical headquarters to conduct operations
- Is comprised of one restaurant or group of food brands that use the same spaces
- Function as a production unit with spaces that prepare food like healthy salad creations in Dubai.
- Tech-savvy facilities.
- Centered around delivery and methods of online ordering
- Only needs chefs and people who prepare the food for customers
- Sharing kitchen space in addition to labor and equipment costs
Why Cloud Kitchen Are Popular
The main reason is due to the rise in deliveries over the past few years:
- According to the National Restaurant Association’s 2020 consumer trends, 52% of people who order takeout make the claim that it is conducive to their lifestyles.
- Based on a Statista survey, 70% of consumers rely on online food delivery companies in Dubai and quick-service restaurants and 44% of customers make online food purchases at least once a month.
Another reason that cloud kitchens are gaining popularity is the flexibility it offers to those who are enduring the hardships of increased competition. Considering the harsh conditions after COVID-19, the restaurant industry is not poised to be in a spectacular position, right away.
In regards to elegant restaurants and corporations, the cloud kitchen concept allows restaurant operators to stick around with the implementation of online ordering protocols and cost-effective procedures.
Online ordering is a convenient option for many people and one of the most cost-effective ways to order food. With the utilization of this concept, restaurateurs can serve quality food like healthy salad creations in Dubai, as food quality is of high importance.
Overall, cloud-kitchens are profitable business ventures:
- The global Cloud Kitchen market was valued at US$0.65 billion in 2018 and is expected to reach US$2.63 billion by the year 2026, at a CAGR of 17.2%.
- U.K. based food delivery giant Deliveroo has revealed that it now claims 2,000 virtual restaurant brands in the U.K. alone – this is a 150% increase from the year prior.
Incentives of Cloud Kitchens
- Lower costs: A cloud kitchen is more beneficial than a conventional dine-in restaurant. First and foremost, there’s no reason to invest in it or pay higher rent or spend too much on technology, equipment, etc. Shared facilities allow restaurateurs to produce and deliver food in a manner that is reasonable for what they can realistically handle. Secondly, a cloud kitchen’s labor force consists of chefs, dishwashers, and delivery drivers. Based on this model, having teamwork at the front of the house isn’t necessary. In this respect, cloud kitchens cut down on labor and operational costs. Last but not least, you can also save money on inventory with cloud kitchens. By tracking data and removing ingredients that are not in high demand from consumers, it becomes easier to avoid these overhead expenses.
- Scalability: A cloud kitchen concept can be expanded easily without having to commit to real estate. Cloud kitchens that are started with low investments can help companies that are franchised grow their business.
- Increased Efficiency: Cloud kitchens run more efficiently than our ordinary restaurants. Because of this, peak hours of operation and wait times make the delivery process more strenuous in restaurants. In cloud kitchens, the process is streamlined more efficiently and makes for an easier experience.
- Competitive menu prices: Cloud kitchens can use their resources to utilize new ingredients on their menus. From analyzing real-time customer data, restaurant operators can enhance their menu ingredients, set prices that are competitive and run their business in a more effective manner.
- Multiple brands and Concepts: Cloud kitchens are all about being flexible. Different delivery restaurants can use the same kitchen for their operations or the same restaurant can operate many brands under one dwelling. For instance, a restaurateur who offers Thai cuisine can also offer Indian food as well.
The Workflow of Cloud Kitchens
Here is the process in cloud kitchens:
- Online orders are received from customers.
- The kitchen gets the orders.
- The meals are cooked by chefs that are assigned to these brands.
- The food will be packed
- The food is delivered to recipients by delivery drivers
For companies like Sweetheart Kitchen, who put out healthy salad creations in Dubai, keep in mind that having prior experience within the food delivery business is an understatement.
You have to not only be skilled in your culinary and delivery skills, but you also need to be tuned in, in order to be able to effectively anticipate the needs of your consumers. This is what brands like Sweetheart Kitchen pride themselves day in and day out.
The needs of the consumer come first, and they are willing to do whatever it takes to prove to them, that they can persevere during these tough times, in order to accommodate their needs with their expansive culinary creations.