How Cloud Kitchens are Making Your Food

How Cloud Kitchens are Making Your Food

Show Notes

How do you know where your UberEats, DoorDash or Caviar orders REALLY come from?

The COVID Delivery Boom
The pandemic has pushed delivery applications to the lime light. The 4 largest food delivery platforms saw their revenues rise $3B collectively in the 2nd and 3rd quarters of 2020. Doordash, who currently operates about 50% of the market, saw 543 million total orders in the first 9 months of the year (compared to about 181 million orders in the same period last year).

Painfully Swallowing the Delivery-app Premium
When the lockdowns happened all over the world, restaurants had to find ways to make money without having "Dine-in" options. Well, they turn to delivery. Restaurant-owners, who dreaded giving away 15-30% of the revenue to the delivery-apps for every order, had to turn to the UberEats and Doordash's of the world.

How do you make money during a Pandemic?
If your only type of sale is delivery, and you're giving away a large part of your revenue to the delivery apps, how exactly do you make a profit? Well, you optimize your costs. Try to make everything cheaper for your operations and expansion. One of the largest costs for any restaurant is the rent! This is where a new industry can help rental costs relatively cheaper: Ghost Kitchens

Kitchens on The Cloud
A Cloud Kitchen or Ghost Kitchen is a large space that can house different types of companies that want to produce products specifically for "take-out". Picture a large warehouse with numerous stations of stainless steel prep tables, hood vents, stoves, ovens, and sinks, each with its own orders coming in direct from customers.

Benefits of a Cloud Kitchen vs Traditional Restaurant Model:

  • Low Overhead
  • Low Start-up Costs
  • Data-Driven Decision Making
  • Efficiency
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