Cloud kitchens are here to stay, say restaurateurs

Nikhil Moturi, a Chennai-based restaurateur, says, “Even before COVID, Chennai had a handful of cloud kitchens. Now, because of the social distancing guidelines, people started to understand its relevance. Also, the lockdown has witnessed a rise in the number of cloud kitchens in and around Chennai. Moreover, cloud kitchens are a profitable model because the investment is only one-third when compared to a physical restaurant. If you have a good experience in running any business, investing in a cloud kitchen is a good choice.”

After noticing an increase in the number of orders in his cloud kitchens, the entrepreneur agrees that cloud kitchens are here to stay. “Like any business, this is also subjected to market risks. This is not a business where you invest money and expect quick returns. You have to put a lot of effort, time and also know how to market the brand. I have 14 cloud kitchens in the city and for me, it was a safe investment. I know the model, the structure, the aggregator’s platforms, what type of food will attract consumers, demographic understanding of where to put the right cuisine, etc. Along with the love for food, if you have business and marketing ideas, then a cloud kitchen can be a viable source of income for a long period,” opines the CEO of Crimson Foods Pvt. Ltd.

According to Nikhil, cloud kitchens will have a major impact on the food industry. “Most of the kitchens offer comfort food at an affordable rate. And that’s what today’s generation is looking for. Since people don’t prefer stepping out now, they can order their favourite dish from their favourite kitchen sitting in the comfort of their homes. In less than 45 minutes, you will get the food,” he says.

Sameer Sethi, Director of Olive and Twist Hospitality, tells us, “As restaurants stay closed during the lockdown, keeping our possible diners at home, the food delivery industry in India is booming. I feel there are signs to show that the change towards home-delivered food is here for the long run. Due to the reduction in nonessential outdoor activities, the natural change towards cloud kitchens in both existing brands and new entrances will only accelerate the pre-COVID trend in home delivery and will result in permanent shift post-pandemic. Cloud kitchens also make it possible to reduce costs such as rent, the number of people on the payroll, therefore, making it more sustainable. I do believe that the cloud kitchen market will recover faster than the dine-in market. Online food delivery has seen a 100-150 per cent growth in the last four years and the pandemic has substantially affected that.” Olive and Twist’s cloud kitchens are the South market, Mirchi Bazaar and Curry on Fire.