Gregorius Rentang Raia and Hitomi Satyanegara
As we move into the Age of the Internet, it appears as if many things are becoming increasingly digitized, allowing for more accessibility to important necessities and general leisurely activities. Since the development of the internet, online services have become more prevalent and serve to be one of the more critical parts of the internet, activities like online shopping, movies, news, or other reading material with a relatively recent addition being cloud kitchens. The name ‘cloud kitchen’ is actually a misnomer as the kitchen itself is a physical kitchen, but in order for it to work, it relies on a network on the internet. The primary function of a cloud kitchen is to make food deliveries more efficient. Although starting up or using a cloud kitchen may come with some drawbacks, for the most part, with the role they serve, the addition and growth of cloud kitchens play a significant role in the continuous advancement of the internet.
As cloud kitchens proliferate through the internet to optimize the delivery of online food orders, we should recognize that cloud kitchens come with many welcoming benefits to those aiming to start an online food business. Firstly, cloud kitchens make food deliveries more efficient. Kitchens themselves are usually customized to fit with the specifications of the business running the kitchen, and they tend to be located in a large warehouse or public area, which are spread across an area since businesses can run more than one cloud kitchen in various areas. This enables the efficient delivery of products and helps preserve the freshness of the food. Cloud kitchens can also be maintained relatively easily; they tend to have a low cost to run and are simple to advertise, making cloud kitchens friendly to start-ups. Cloud kitchens are also adaptable — as businesses spend more time using one, they can further optimize the cooking and delivery process to help promote business growth.
Having many potential benefits for a growing business, cloud kitchens also possess possible drawbacks that have to be tolerated or otherwise dealt with. Since the cloud kitchen model is reliant on an online network, businesses do not have a physical presence to sell their products. While this isn’t necessarily a universal drawback as there are established and successful start up cloud kitchens, it has the potential to hurt some businesses depending on the scenario. Cloud kitchens are also heavily reliant on technology to ensure that the process runs smoothly — knowing if an order is placed, having to use a third party delivery software and general communication are all examples. If either were to be problematic, it wouldn't stop the cloud kitchen entirely. However, it may result in large interruptions for the kitchen. Moreover, competition is also another drawback. It could be argued that competition from other businesses may be a benefit as it drives improvements; however, it can be detrimental if businesses fail to keep up with their competitors. Either way, more businesses are working with cloud kitchens so brand new start-ups working with cloud kitchens may have to fight to survive and grow.
Cloud kitchens, compared to the generic restaurant, differ in so many aspects, especially in the way they run their businesses and how they form their business models. Since cloud kitchens are only delivery based restaurants, they don’t have the physical space for people to dine in, therefore they depend entirely on online orders from websites or mobile apps. This allows a more flexible launch since they are able to make use of resources they currently have without spending more money into the restaurant itself, which allows the owner to utilise higher quality ingredients and more options with the packaging. Especially with the current situation that has affected brick-and-mortar restaurants around the world, those that lack delivery services or even a pick-up station are being held back from being allowed to open, which causes them to lose their profits, especially with their ingredients not having a lengthy sell-by date.
The most important part of a cloud kitchen’s business model is their staff, there is no longer a need for any wait staff but instead, highly skilled kitchen staff and those who are adept in managing the platform they use to take online orders. The dishes sent out must always be at its highest quality since it is the only factor customer satisfaction is judged on. Unlike typical restaurants, customer service is barely factored into consumer satisfaction when it comes to cloud kitchens. Moreover, managing suppliers just like a regular commercial restaurant where all the ingredients must be available and of high quality may lead to complications if the owner is running multiple brands under one roof. Next, marketing choices should also be expanded beyond the typical restaurant, since cloud kitchens lack a physical outlet. The absence of walk-in customers, reduces the visibility aspect, and thus more marketing is necessary. They would need to have a more substantial online presence which can include building a website for the business, having social media pages, contacting apps such as Zomato or GO-JEK that can help attract interested buyers and even through complimentary restaurants which involves working with other non-competitors who would be willing to incorporate their dishes as a form of promotion. Collectively, these aspects make cloud kitchens much more interesting compared to a regular restaurant.
With the help of the internet, those suffering because of the pandemic have another chance to serve again and bring in more profit than they did previously with their own commercial restaurants. Cloud kitchens bring in bigger opportunities for one's brand and increase the number of sales compared to a regular commercial restaurant, especially with the current situation that has affected restaurant sales drastically therefore, bringing thousands of small restaurants out of business. This allows everybody to have a chance to run their own food businesses, whether they are just starting or even food veterans from famous restaurants. It equalizes the playing field for all to reach their desired successes. The quantity of resources needed to run such a kitchen also costs less than a traditional restaurant which means higher profit margins. Even with their heavy reliance on technology or the internet, this is a better way to bring in new customers who always wanted to try but never got the chance to because of the distance they would need to travel if they were to travel there themselves. This also gives third party applications more benefits where they themselves would get profit. Yet the businesses working with them would still have their own share, which benefits everybody in this very competitive world. Essentially, cloud kitchens seem to be a wonderful and widely beneficial concept derived from the Age of the Internet.
Works Cited
Colpaart, Ashley. “Everything You Need to Know About Cloud Kitchens (Aka. Ghost Kitchens) in 2020.” The Food Corridor, 6 Dec. 2019, www.thefoodcorridor.com/2019/12/05/everything-you-need-to-know-about-cloud-kitchens-aka-ghost-kitchens-in-2020/.
“Decoding The Cloud Kitchen Model: Myths And Truths About Cloud Kitchen.” The Restaurant Times, The Restaurant Times, 27 June 2020, www.posist.com/restaurant-times/cloud-kitchen/cloud-kitchen-setup/cloud-kitchen-delivery-kitchen.html.
Mishra, Sonal. “Opening a Cloud Kitchen? All the Pros and Cons You Should Know.” Medium, Medium, 4 Dec. 2019, medium.com/@voicesinmyhead/opening-a-cloud-kitchen-all-the-pros-and-cons-you-should-know-244397edba3
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