Page 73 - Hospitality Horizon - February-March 2021
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FOOD & BEVERAGE













                bright future for







                       dark kitchens












                                                          THE FOOD SERVICE INDUSTRY IS
                                                          THE NEWEST SECTOR TO REAP
                                                          THE BENEFITS OF CLOUD TECH


                                                          BY AKSHAY NAYAK



                                                                     ccording to a RedSeer Management
                                                                     Consulting report, cloud kitchens – also
                                                                     known as dark kitchens or ghost
                                                                     kitchens – are projected to become $2
                                                          Abillion industry in India by 2024, up
                                                          from just $400 million in 2019. While several sectors
                                                          have been reaping the benefits of cloud tech for quite
                                                          some time, the food service industry has been a new
                                                          albeit late entrant.
                                                            With the cloud kitchen model exhibiting such
                                                          soaring potential, it is hardly surprising that not just
                                                          new players but also bigger F&B brands have turned
                                                          to it. The delivery-only kitchens started a couple of
                                                          years ago but it picked up momentum during the
                                                          pandemic as governments asked traditional eateries
                                                          to remain shut. That it decreased operational costs
                                                          and allowed flexible multi-brand functioning from
                                                          one outlet came as a boon for restaurateurs.
                                                          HERE TO STAY
                                                          “As a model, cloud kitchen is here to stay but the way
                                                          it is structured, it looks a little fragile. If that
                                                          correction happens, it is a beautiful model and has



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