Cloud kitchen model also reduced the cost of starting up a food brand, and many first-time restaurateurs embraced the model. However, only a few managed to survive and scale with the model during the period
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The way we eat from restaurants has fundamentally changed in the last couple of years, and that has thrown up a lot of questions for the industry. Earlier, most restaurants would see a small part of their business coming from delivery. Today, most of the established restaurants see an increasingly higher share—even the majority share in many cases—coming from customers ordering in. In the new normal, the Indian foodservice delivery market is expected to double in value to $13 billion by 2025 (according to a RedSeer report), growing over 30 percent CAGR between 2021-26 (according to a report by Motilal Oswal Financial Services), growing much faster than the overall industry (including dine-in). This changing trend has also led to the rise of ‘cloud kitchens’. According to a report by RedSeer Management Consulting, cloud kitchens are set to be a $2 billion industry in India by 2024, up from $400 million in 2019.