Cloud Kitchen: A Profitable Venture

Abstract: This study examines the profitability of running a cloud kitchen over a traditional restaurant when it is pursued with the same level of efforts from the entrepreneur. Cloud kitchen with its many advantages over the traditional setup of a restaurant has shown to be a more profitable option in most of the cases. Cloud kitchens are not here to replace restaurants, it is just an additional food serving avenue for consumers. Only people who want to spend quality time with friends, colleagues, and family members will visit restaurants. For consumers who wish to enjoy and celebrate at home, cloud kitchens are available. These are two different venues altogether and none of them are here to replace each other. With direct competition with aggregators, new players are expanding the overall market. It fairly seems possible that in the future even lower-end traditional restaurants also will migrate to new norms and methods. Cloud kitchen hence seem a viable option for its enhanced efficiency in reach of customers, costs, time, ease, and regulated operations.

Keywords: Cloud kitchen, Dine-in, Entrepreneur, delivery only