In a nutshell, virtual kitchens are restaurants that do not have any space for in-house dining. The kitchens are also called Cloud kitchens because they only produce the food but do not host guests for any dining experience.
Cloud kitchens have grown in popularity over the past few years because of several reasons that shall be discussed in this post. Essentially, they serve as off-premise support kitchens that make food for full-fledged restaurants or take-out establishments only.
Virtual kitchens are trendy among the youthful population because they serve food on the go. That means the wait time to get service is reduced, unlike a typical restaurant where you have to wait for a long while to be served.
Here are some reasons why virtual kitchens are gaining popularity the world over:
• The Covid-19 pandemic
Last year was a challenging year for all. However, the hospitality industry was hardest hit by the pandemic, with over 100,000 restaurants closing due to tough economic times. The main reason for the shutdown is that many restaurants depend on disposable income from their clients. Since many other businesses were on a nosedive, the customers stopped eating at restaurants.
Additionally, many people feared they would contract the virus if they ate out. Thus, a significant reduction in people visiting restaurants.
However, virtual kitchens offer a solution to this problem. They offer home delivery models and take-out services that minimize physical contact. Thus, the client is always safe.
• Food delivery services are on the rise.
The cloud kitchen model capitalizes on the growing demand for delivery services. Just before the pandemic struck, many restaurants had already commenced a delivery-centered mode of operation. As a result, many mobile applications were developed to cater to this growing demand. Apps like UberEats and Doordash tell the whole story.
According to statistics, the number of meal delivery requests escalated by 150% during 2019-2020. Judging by this surge, experts advised that the food delivery market would be worth around $365 billion by the year 2030.
In the past, restaurants that had started embracing this model did not see it as economically viable. However, looking into the future, the meal delivery model is the way to go.
• Low start-up cost
Virtual kitchens are not as expensive to start up as full-fledged restaurants. Especially now that many governments all over the world are imposing heavy guidelines on any restaurant to operate.
Cloud kitchens can easily comply with these regulations since they only serve take-out and delivery meals.
Additionally, one will not have to worry about certain recurring expenses like rent because virtual kitchens do not take up much room. One can quickly start a cloud kitchen business with little capital and slowly pick up from there.
• Cloud kitchens easily integrate with the digital world
Many businesses all across the globe are integrating a digital aspect with their everyday business routines. It is tough to ignore this fact, especially with many virtual kitchens taking social media to advertise their services.
Aside from social-media integration, many cloud kitchens tend to use the delivery-only model. That would mean forming partnerships with mobile applications to make this possible. The association can be over the long-term or short-term, depending on the needs of the kitchen.
Additionally, as the world is filled with millennials, they are naturally drawn to ordering food online. They also form the bulk of virtual kitchens’ customers.
• A change in customer culture
The new trend of ordering food and eating at home is taking over the industry. Many restaurants that are accustomed to hosting clients for in-house dining are likely to be overshadowed by virtual restaurants.
However, virtual restaurants could help them adjust their business models, and they could remain afloat in the process.
Traditional restaurants will not, however, become obsolete, but their market share will drastically dwindle.
Lastly, it would be best for any restaurant to embrace the virtual kitchen model because the future looks to be favoring this direction.
• Virtual kitchens are more flexible as compared to traditional restaurants
In the traditional restaurant setting, adjusting your business could mean losing customers who did not like these adjustments. However, in cloud kitchens, their presence is mainly online and not physical. That would then mean that you have room for making changes that best suit your business without losing your clients in the process.
Additionally, millennials make up the largest share of clients for virtual kitchens. They love experimenting on new delicacies, and you can capitalize on this.
You could add more items to your menu and make slight changes to your business model, and the clients would still love it.
• More room for expansion
Cloud kitchens have more room for expansion than any other business model in the food industry. You can run many restaurants using one virtual kitchen and still make a killing while at it. Additionally, one can use the same equipment and space for multiple restaurants and make a profit.
Further, since you can also have virtual kitchens on wheels, you can place them in many areas in a city and realize a considerable profit selling take-out.
Lastly, you can add many brands to your kitchen and not have to spend an extra dime. In this regard, you can experiment with multiple cuisines and reach new markets each time.
• Collect customer information
With many virtual kitchens getting into partnerships with mobile applications; the application providers can provide you with data about your clients that you can use to better your services.
Whether you are using an application or website, you can collect the data and use it to find better ways to engage your client base.
After reading that, you probably want to start a virtual kitchen of your own. That is where -Occupyd comes in. With them, you can rent a kitchen placed at an optimal location to ensure you have customers all day long. You can click here to visit their website and request a kitchen space today. Lastly, a virtual kitchen is a way to go for anyone who wants to venture into the food industry. Additionally, if you are an investor, cloud kitchens will give you your money’s worth.