![]() Within the cloud kitchen space, several business models have also emerged and speaking to the founders of each reveals one thing – each is convinced and adamant their model is the right one.īut before we explore the different business models, it is important to understand what has driven such a fast-paced rise in cloud kitchens in the region. According to data from RedSeer Consulting, cloud kitchen revenues in the UAE and Saudi Arabia jumped 160 per cent from 2018 to 2019 and is currently worth more than $65 million. With technology this evolved, initially by incorporating an online booking system and then with the rise of online food delivery, these kitchens became the spot where restaurants and virtual brands serviced the delivery-only market.Īnd so commercial kitchens went from being a space to cook, to becoming a tech-infused “cloud” operation and over the past couple of years, the UAE has emerged as a global hotspot for startups in this sector. While industrial and commercial kitchens have always existed, they have traditionally operated as a real estate play – leasing out their facilities to caterers, cooking classes and food manufacturers, usually small brands creating shelf-ready products. ![]() Prior to Kalanick’s foray into the sector, cloud kitchens were already making their mark in India and Singapore. With one of the world’s most successful entrepreneurs at the helm and plenty of capital, then surely this new startup was going to be the next unicorn.Īlso known as dark, satellite, virtual and ghost kitchens, the cloud kitchen space has opened up a world of virtual restaurants, menus and brands. ![]() The culinary team makes use of the app’s outreach to expand their clientele and the app makes use of the culinary skills to provide versatility to its users.When Uber co-founder Travis Kalanick sold most of his shares in the mobility giant to launch CloudKitchens, securing a $400 million cheque along the way from PIF, Saudi Arabia’s sovereign wealth fund, it ignited a wave of interest among the world’s tech community. The app company and the culinary team are interdependent. The orders are placed through the apps and the delivery service is run by the apps too. Owned by delivery apps: These have a delivery app company leasing or purchasing a geographically strategic kitchen space and allowing them to come up with food brands. It also has various outlets offering both takeaways as well as delivery services but usually operates as one kitchen per culinary team. The delivery process is either independent or happens through a third-party food delivery app. They function very much like cloud kitchens and have an operating front allowing customers to pick their food up. Hybrid: These are an amalgamation of takeout restaurants and cloud kitchens. It is a tactical and systematic model which helps produce profits and retain costs. ![]() Different chefs pack different meals from the same kitchen. The most in-demand cuisines and trends are identified and adhered to. Multi-brand: These are directly proportional to the popular food trends and common food that is consumed by local people in a particular locality. It is a hub and spoke business model that works independently in terms of acquiring and dispatching orders As soon as an online order is punched, the bases of operations are carried out via a single kitchen. Independent: These are the classical cloud kitchens without a physical model.
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