Cloud Kitchens has proven its worth by not only increasing the sales of their partner restaurants and food entrepreneurs, but it also played an important role to the economy of other businesses as well.
It gave hope to the other segments of the industry that’s why this new segment of Restaurant Industry had gained many patrons and followers within the business. They have witnessed its promise as a business model, and it’s been affecting the growth of other businesses positively.
In this article, business opportunities that are present with cloud kitchens would be discussed along with other benefits this business model have for food entrepreneurs and operators.
Here are some of the foreseen future of the Restaurant Industry should the market continue to thread the way into concepts like Cloud Kitchens :
- Instead of cost saving, customers would find cooking as an experiential act.
- Real-estate and Construction Industry would focus more with apartments without full kitchens.
- Casual dining restaurants would be a rare find in a local community.
- With the drop of setup costs, delivery-only restaurants would continue to grow.
- Restaurant operations would focus on experience and efficiency.
TOP BUSINESS OPPORTUNITIES ASSOCIATED WITH CLOUD KITCHENS
GIG ECONOMY FOR DELIVERY SERVICES
Restaurateurs have a hard time keeping up with the extra fees charged by third party apps, while it really gives the added exposure needed, it doesn’t pay much to the costs they’re charging to the food entrepreneurs. That’s why, business opportunities for the gig economy in delivery service will become more in demand.
As long as you have a smartphone, one can start to negotiate with these freelancers and start catering deliveries to a broader market without the need of paying as much as the fee charged by third party apps.
KITCHEN EQUIPMENT MANUFACTURERS
To be able to keep up with the growing demand of food deliveries, cloud kitchen providers are being more keen on buying and installing kitchen equipment. They make sure that it’s top quality and will help with the operations inside their establishment.
This gives a bigger business opportunity for kitchen equipment manufacturers as there’s a continuous increase with a demand that they need to supply.
Cloud Kitchens are mostly located in industrial spaces that are not really appealing for a business that requires high foot traffic and are hard to sell, therefore these spaces are usually lowest in price. That’s why it is seen as a huge business opportunity for landlords because they’ll be able to rest, lease, or sell these industrial spaces.
Quality food delivery relies on good packaging. And since it relies on food deliveries, cloud kitchens are giving a great opportunity for packaging suppliers. This allows packaging suppliers to produce designs that will uphold the quality of the food while it’s being travelled.
Also, it needs to be aligned to the branding of the partner restaurants of the cloud kitchen. That’s why packaging suppliers also grow alongside cloud kitchens.
Automation is already part of cloud kitchens, and since it is a growing industry, there’s also a growing competition for this market. That’s why cloud kitchens open business opportunities for software developers because it needs more customized automation that will compliment their operations.
RAW INGREDIENT SUPPLIERS
The demand for high quality raw ingredients is high for cloud kitchens. These kitchens are solely focused on producing their food items and in order to deliver the quality of food they want their customers to experience, they have to get it from the best supplier.
This also means that there will be a fast exchange in transaction between the supplier and the cloud kitchen because this business operates in an expeditious-paced environment.
ADVANTAGES OF CLOUD KITCHENS IN THE RESTAURANT INDUSTRY
- The Opportunity to Try out a New Concept to Offer. Given how this type of business model operates, you’ll have more time to focus and think through with your concept before you offer it to the world.
- Lower Overhead Costs. The concept of cloud kitchen is to provide a functional kitchen for restaurants salvaging the costs for additional labor, renovation costs, and other basic costs
- Reduced Labor Costs. Cloud kitchen won’t require you to hire front-of-the-house staff and staff that are unnecessary with food preparation and delivery.
- Ownership of all Customer Information and gathered data. Unlike when you partner up with a third party app, if you operate your own, you’ll be able to get a hold of the customer’s data you’ve gathered and utilize it on your advantage.
- Greater Revenue. Since there’s a huge cut on your costs and there’s a great demand for food delivery, it’s not surprising that you’ll be gaining more revenue.
- Utilize and Maximize the unused portions of your Operation. This applies to existing restaurants who wanted to shift into a cloud kitchen, or simply adopt its principles. Converting the space would help save up costs and maximize the lease or rent cost.
- Learning Opportunity. Cloud kitchen allows your staff to learn new skills which improves their flexibility and efficiency. It also allows you to improve your management skills and you’re allowed to produce a whole new concept for your business.
Cloud Kitchens has recently become one of the major drivers in the Restaurant Industry. It meets all the requirements the modern diners are craving for; a fast and convenient food service and a food delivery that offers quality food items. It may have some loopholes for now, but the market just witnessed how quickly it developed into a new segment of an industry.
And this development is the main reason why it has gained its ability to produce more business opportunities to different sectors of the economy. Starting from the freelancers up to the software developers, the demand became so big that it was able to touch these different sectors, including online ordering for restaurants.
The market will continue in shifting to whichever direction it wants to, and Cloud Kitchen will be a proof that if a business is willing to grow and thrive despite the challenges and changes occurring, it’ll find a way to grow and this growth would eventually open opportunities to others along the way.