How Cloud Kitchen Restaurant Trend Impacts $200B Online Food Delivery Space

Cloud Kitchen / Virtual Kitchen / Ghost Kitchen – they are all referred to by different names, but the concept is very evident in the names. Every restaurant has a back of house and a front of house. Cloud Kitchens are restaurants with no front of house.

The evolution of cloud kitchens has been driven by consumer demand. Consumer demand has majorly fueled food delivery, and traditional restaurants which used to see barely five-to-ten percent of their total revenue being driven by online orders as recently as three years ago, now see over 30 percent of their revenue come from delivery platforms. This indicated a clear trend that a “restaurant” does not need to necessarily comprise of both front of house and back of house components.

 A 'restaurant' does not need to necessarily comprise of both front of house and back of house components.

Because of the rapid rise in food delivery, what became clear was that a restaurant can be built purely on delivery. There was also…