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Cloud Kitchen: Sustainable development in the Micro markets

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The ongoing pandemic has catered to several industries transforming their method of functioning. With the need to adapt, several industries today seek the concept of innovation through several approaches such as technology for example. Most industries are presently working towards sustainability as a way forward for a betterfuture.With respect to the hospitality industry, the recent pandemic has led to stand alone establishments to grow larger. Most consumers are opting for takeaways as a safer option rather than dining in establishments, hence leading to cloud kitchensto develop in the micro markets.

The concept of cloud kitchen refers to purely takeaways and no option of dining in, where the orders are received through an online form. The unit is looked at as a production space which primarily includes cooking and packaging of food. A few advantages of cloud kitchen include – low operational costs, competitive pricing, automation and quality. The hospitality industry does include high operational costs which tend to get extremely demanding for establishments. The recent scenario has called for few customers visiting the establishment and hence replacing them with takeaways as most consumers today are extremely busy with working from home as well as away from home. Hence, the concept of cloud kitchen removes the burden of any real estate expenses. A primary focus that has definitely worked well this pandemic is automation. By going extremely limited on their menu, automation has helped the process of packaging, therefore contributing 25% of the total workload. Having to stick to a limited menu, several overhead expenses have been saved which therefore cater to dishes containing good quality and quantity. Most cloud kitchens have focused their ideation on home cooked food that is healthy and delicious to consume. While there are several advantages to establishing a cloud kitchen, there are a few challenges as well. Cloud kitchen does emphasize on the strong use of technology which can be quite an expense for an establishment. As a cloud kitchen, the central efforts would be communicated through food delivery apps. As the market is comparatively new, the platform is considered to be a less organized in terms of sustainability for example. Lastly, the experience of fine dining would be missed out on. The art of plating or experiencing a live kitchen would be missed out by customers.

While there are advantages and disadvantages to the same, the recent pandemic has truly called for innovation. Cloud kitchen is a relatively new invention in the market which is predominantly focusing its efforts to a niche market, we believe the concept is not hampering the market share but rather expanding and growing the overall industry.