Cloud kitchens are restaurants without a physical location that deliver food through popular food delivery apps. As more entrepreneurs enter the market, the biggest challenge is how to stand out from the crowd. One solution may be to create "micro brands" or influencer-based cloud kitchens.
Cloud kitchens and dark kitchens are becoming increasingly popular in hyper-dense markets due to low delivery costs and time, which makes sense if delivery makes up a significant part of revenue, and requires different marketing strategies.
Entrepreneur and investor, Arlan Hamilton, discusses the rise of ghost or cloud kitchens, which are food delivery optimized restaurant brands that don't have physical storefronts, and how they're creating new business opportunities for food entrepreneurs.
This podcast explores the impressive customer acquisition costs and widespread usage of food delivery apps, which have led to the use of off-the-shelf chefs to prepare daily meals.
As people spend more money eating out than cooking at home, cloud kitchens have a significant opportunity to succeed in the food industry. Despite the brick and mortar nature of this business, the continuous growth in takeout and delivery suggests a bright future for cloud kitchens.