Cloud Kitchen Foodservice Market Update Know Whose Market Share Is Getting Bigger And Bigger
Report Attributes | Details |
CAGR | 13.5% |
Study Period | 2028 |
Base Year | 2022 |
Unit | Value (USD Million) |
Major Players Profiled | Ghost Kitchen Brands (United States) Doordash (United States) Uber Eats (United States) Rebel Foods (India) Sky Gate Hospitality (India) Sweet Truth (India) HOI Foods (India) Grub hub (United States) Caviar (United States) Just Eat Takeaway (Netherlands) |
Region Covered | North America, South America, Europe, Asia Pacific, MEA |

- The largest internet restaurant company in the world, Rebel Foods, announced on February 28, 2023, that it intends to disrupt the global traditional quick service restaurant industry in partnership with iconic hamburger brand, Wendy’s. The new agreement, which builds on their current development agreement for cloud kitchens, commits to the development of traditional restaurants. With this enlarged, new franchise agreement, Rebel will help the company in growing its restaurant concept in India by utilizing its experience in digital delivery, automation, and innovation.
- As the only Wendy’s cloud kitchen franchisee in India (limited to delivery), Rebel Foods will now be in charge of managing all of the chain’s conventional locations there. In addition to announcing the opening of its 100th fulfillment partner in Bharuch, Gujarat, on October 14th, 2022, Ghost Kitchens India also aims to invest Rs. 50 crores over the following year to further grow the brand’s reach. With the help of this internet technological platform, underutilized restaurants and cloud kitchens may make extra cash with a minimal outlay of capital. Ghost Kitchens fills a culinary niche at each partner with 4-6 brands and a standout value proposition for the consumer. The opportunity to connect with Ghost Kitchens and market their enterprises is now available to anybody running a restaurant or cloud kitchen with untapped capacity.
- Since then, there has been a rise in demand for cloud kitchen meal delivery. Food enterprises may save money by utilizing cloud virtual kitchens. Leasing a commercial kitchen from a ghost kitchen provider minimizes start-up costs because food businesses no longer have to spend money on building inspections, expensive building construction, zoning compliance, etc.
- Additionally, compared to the months or years required for traditional leases or construction financing, cloud kitchens enable food businesses to launch quickly. Customers’ demands may be met by end-user enterprises using cloud kitchen meal service. Often, meal prep companies only need a kitchen for a few days a week.
- There has been a growth in the demand for cloud kitchen catering. Food enterprises may save money by utilizing cloud virtual kitchens. Leasing a commercial kitchen from a ghost kitchen provider minimizes start-up costs because food businesses no longer have to spend money on building inspections, expensive building construction, zoning compliance, etc.
- Additionally, compared to the months or years required for traditional leases or construction financing, cloud kitchens enable food businesses to launch quickly. End-user organizations may meet the demands of their consumers with cloud kitchen meal service. Often, meal prep companies only need a kitchen for a few days a week.
- Since end users can change their menu focus whenever they want by using an app or the web, without having to worry about updating printed materials or signage, the cloud kitchen food service has experienced tremendous growth.
- If an ingredient’s price rises or it is no longer accessible where it was previously, the menu items may be rapidly changed to fit what is now available.
- The motivating argument is that since they don’t apply to virtual restaurants, expensive elements like décor, signage, crockery, and additional staff members to serve as hosts are avoided in cloud kitchen meal services.
- Due to the cloud, restaurant owners can easily discard concepts that don’t work with little exposure when experimenting with new ideas.
- Even though customers can use a delivery app to browse a variety of brands from the comfort of their homes, the main barrier to growth in the cloud kitchen food service market is the fierce competition in an oversaturated online market. The foot traffic that a business generates is lost while operating a cloud kitchen. The location of the kitchen should also accommodate end users’ restrictions.
- Another factor to consider is that a delivery-only brand’s reputation depends on the food arriving to the consumer in perfect condition. Food quality may be impacted by external factors, such as delivery drivers who are tardy or who make coffee stops. Maintaining a high level of food quality is crucial to promoting repeat business.

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