Mohamed Al Fayed, Co-founder & CEO, Grubtech, a Dubai-based SaaS startup for cloud kitchens and delivery-centric restaurants
The rising need for easy meal delivery and technological developments are the main reasons cloud kitchens are becoming highly popular in India. This idea, which may also be called “ghost kitchens” or “virtual kitchens,” eliminates the need for actual dining rooms by concentrating entirely on food preparation for delivery. The strategy has a number of benefits over more conventional dining establishments, including less overhead, less risk, and the ability to try out different types of food all in one place.
Forecasts indicate that the Indian cloud kitchen market would soar from its 2019 valuation of USD 400 million to a whopping USD 2 billion by 2024. Lifestyle shifts, such as the meteoric rise of online meal ordering, particularly among city workers and millennials, have fuelled this expansion. The sector has been heavily invested in by both Zomato and Swiggy, which has increased its visibility and popularity in many cities, even in tier-2 and tier-3 markets.
Saving money on rent, interior design, and large staff teams is the main selling point of cloud kitchens. This is why they are appealing to both seasoned restaurant owners and those just starting out in the industry. Here, technology is vital; kitchen management solutions powered by AI simplify order processing, stock tracking, and interaction with customers. In an effort to reduce aggregator fees, several cloud kitchens have partnered with meal delivery services, while others have developed their own apps. In an exclusive interaction with NUFFOODS Spectrum Magazine, Mohamed Al Fayed, Co-founder & CEO, Grubtech, a Dubai-based SaaS startup for cloud kitchens and delivery-centric restaurants, explains how the cloud kitchen scenario is changing the restaurant business globally and especially in India.
How you envisage the future of Cloud Kitchen concept in terms of business, popularity and easy accessibility?
According to a recent analysis by Euromonitor, cloud kitchens are expected to continue their expansion on a global scale and are projected to amount to a one trillion dollar opportunity by the year 2030, respectively. Not only will they integrate dark kitchens, but they will also ensure that a large number of restaurants will be operating virtual brands within their establishments. These virtual brands will serve as an extra source of revenue for the proprietors of the restaurants. The behaviour of consumers is continuing to change towards dining away from the premises, and this will continue to fuel the growth trajectory of cloud kitchens and virtual brands.
What is the current market size of this domain and how much do you expect it grow in the near future?
The market for cloud kitchens is expected to reach USD 72 billion by the year 2025 and keeps expanding at a rate of double digits year after year.
What are the major challenges that one needs to face while setting up cloud kitchen?
Multi-brand single-location operations are difficult to manage and require the application of technology in order to achieve a level of efficiency that is lucrative. Companies such as GrubTech have developed a platform that operates from beginning to finish with the intention of managing all parts of the operation. From the management of the central menu to the implementation of intelligent kitchen management systems, it is essential that operators make use of the capabilities that are available to them in order to guarantee that throughput and consistency are maintained throughout the operations.
What are the major issues faced by the companies that are offering cloud kitchen services to these joints?
In terms of their execution style and the principles that guide their operations, every single kitchen operator is one of a kind. It is necessary for technology and service providers to possess a system that is both highly scalable and versatile in order to properly accommodate the many sorts of cloud kitchen business models.
How your technical assistance help people to set up their cloud kitchen?
When it comes to the technological setup of a kitchen, GrubTech eliminates the need for guesswork. Every step of the order path has been automated by us, which frees up the operators to focus on developing innovative ideas and providing exceptional service to their satisfied clients. Within a few days, we are able to install our solution on a worldwide scale at a remote location.
Nitin Konde