Why Now is the Right Time for Cloud Kitchens
The pandemic has caused a turmoil in the restaurant industry. It is anticipated that many restaurants are going to shut down. Various reports peg this number from 30% to 50%. AD Singh, founder of Olive Group of restaurants says that about 50% of the industry will not manage to reopen post the pandemic (read here). CRISIL also reports that the country’s organized dine-in restaurants faced a 40% – 50% dip in revenues until March 2021. Despite all this turmoil, delivery led brands through Cloud Kitchens are another story.
Cloud Kitchen Boom?
Cloud Kitchens are growing because of their focus on delivery and their ability to innovate packaging. They also have the potential to leverage data for business operations. Market research firm Redseer expects the cloud kitchen business to become a $3 billion industry by 2024 in India. Globally this is expected to reach $75 billion by 2027.
Cloud kitchens and food delivery become de facto choices with consumers staying at home. People will be cautious about dining-in much after the pandemic as well. Cloud Kitchens are poised for continued revenue growth in 2021. Thus making them a good investment opportunity for both current and prospective franchise owners.
What makes Cloud Kitchens click?
While there is an immediate opportunity today, the long term trends in India are in favour of cloud kitchen models.
- Technology & increasing work from home options keep people connected to their jobs 24/7 leaving less time for meal preparation and sit-down meals. People are starting to spend more income on takeout and delivery.
- This trend is especially strong among younger millennial consumers. Eating out or ordering-in from restaurants has become a significant part of their spend on food.
- Even before COVID-19, technology innovation in the food service industry had made food delivery easier than ever, a trend that is expected to continue and accelerate in the coming years.
Technology will play an important role in shaping the future of the restaurant food industry, like it has done with many others. If you’re thinking about becoming an entrepreneur in this space by investing in a franchise option, do your due diligence. Think about the following:
- the categories in which the brands operate
- support from the company
- use of technology to scale & streamline operations
Partner with the Best
Kouzina offers an attractive opportunity for all budding food entrepreneurs with multiple brands (WarmOven, Indiana Burgers, KaatiZone and more) operating from the same kitchen and a proprietary technology platform. The low upfront investment and attractive kitchen unit level economics make it a very attractive opportunity for those looking for stable long term growth.
If you are interested to know more about franchising with us, email us at franchise@kftpl.com . Together we can!
