Lowered operational costs, minimal requirement for manpower, added convenience, optimal delivery experience and easy expansion scope are some of the major factors leading to the rapid growth of the cloud kitchen market in India. Restaurants and caterers across the country are preferring cloud kitchen over the traditional fine dine restaurants and storage spaces for their meal preparations as it helps them reduces costs and saves time.
Cloud kitchens or virtual kitchens, are delivery-only restaurants that operate from a central location and do not have any dine-in facilities. They have gained popularity in India due to their ability to cater to the growing demand for online food delivery. Prevalent usage of smartphones, easy internet access, and ever-changing consumer preferences also tends to influence the growth of Indian cloud kitchen market during the forecast period.
Lesser Administrative Hassle and Lowered Operational Cost
Cloud kitchen are gaining tremendous traction in India owing to various benefits associated with its adoption. It reduces the expenses of setting up dining area, a host, waiting area and restrooms which are a part of any traditional restaurant in the country, eventually leading to a higher maintenance cost. Opting for a cloud kitchen reduces many of the expenses associated with running a typical restaurant.
Increased Adoption by Fast Food Chains and Local Restaurants
Fast food chains like McDonald's, Burger King and KFC have begun experimenting with cloud kitchens in India to reach more customers and increase their delivery capabilities. Meanwhile, local restaurants are also adopting the cloud kitchen model to expand their reach and increase their profits. This trend is expected to continue in the coming years, making cloud kitchen a lucrative option for established chains and new restaurants.
Government Incentives
In recent years, cloud kitchens have emergent as a strong segment in India due to the convenience they offer to consumers and the cost-saving benefits to restaurant owners. To support this growing market, the Indian government has introduced several schemes and incentives. The FSSAI (Food Safety and Standards Authority of India) provides registration and licensing for cloud kitchen, which is mandatory for any food-related business. This certification ensures that the food produced by cloud kitchens is safe for consumption and meets the required quality standards.
State level involvements of government is also giving surge to the cloud kitchen market. For example, DDC Delhi in collaboration with Department of Industries invited 15+ cloud kitchen representatives in April 2022 to discuss challenges faced by them and how could Delhi Government facilitate growth of the industry in the city.
Impact of COVID-19 on India Cloud Kitchen Market
Cloud kitchens, which are delivery-only restaurants, saw a surge in demand during the pandemic as people turned to online food delivery services to avoid exposure to the virus. However, the initial lockdowns and restrictions on movement posed significant challenges to the cloud kitchen industry as well. One major impact of the pandemic was the disruption of supply chains, which affected the availability of ingredients and increased costs. This led to higher prices for consumers and lower profits for cloud kitchen operators. Additionally, the closure of restaurants and cafes during the lockdowns created an opportunity for cloud kitchens to expand their offerings and fill the gap in the market. Many traditional restaurants also shifted to cloud kitchens during this time.
Report Scope
"India Cloud Kitchen Market Assessment, Opportunities and Forecast, FY2017-FY2031F,” is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of cloud kitchen market in India, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities and forecast between FY2024 and FY2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
