{"id":25637,"date":"2021-05-30T20:41:00","date_gmt":"2021-05-30T20:41:00","guid":{"rendered":"https:\/\/www.posist.com\/restaurant-times\/?p=25637"},"modified":"2023-08-24T14:21:31","modified_gmt":"2023-08-24T08:51:31","slug":"future-of-ghost-kitchen-business-model","status":"publish","type":"post","link":"https:\/\/www.posist.com\/restaurant-times\/uae\/future-of-ghost-kitchen-business-model.html","title":{"rendered":"Can Ghost Kitchen Business Model Be the Future of Restaurant Business?"},"content":{"rendered":"

Ghost kitchens, also known as cloud kitchens or dark kitchens, is a relatively new concept for the public even though it has existed for years in the UAE. According to<\/span> Acumen Research and Consulting<\/span><\/a>, the global cloud kitchen market is expected to grow at a CAGR of 22 percent during the forecast period of 2020-2027 and reach USD 201.1 Billion by 2027. This can be attributed to the fact that the ghost kitchen business model has proven itself more adaptable to changing market conditions than other restaurant models post-pandemic.\u00a0<\/span><\/p>\n

Ghost kitchens are growing their market share in the UAE. More restaurateurs are setting up their kitchens, while the existing ones seek funds to expand their horizons. Kitopi, a renowned Dubai-based cloud kitchen, already handles 60 kitchens and is seeking around USD 200 million to expand to Southeast Asia in 2021. Furthermore, following a merger between Kitch, a cloud kitchen operator, and Barbar, a Lebanese restaurant chain, Dubai is set to launch the first Barbar restaurant this year, followed by seven other outlets in other parts of the UAE.<\/span><\/p>\n

The question is, with all the mergers, expansions, and acquisitions coming up, are ghost kitchen restaurants the future of the restaurant industry? Let us find out.\u00a0<\/span><\/p>\n

What Makes The Future Bright For Ghost Kitchen Business Model?<\/b><\/h2>\n

The food and beverage industry of the UAE is endlessly evolving. The increasing adoption of technology has given rise to cloud kitchens. Cloud kitchens have been <\/span>leading the revival<\/span><\/a> of the restaurant industry in the post-pandemic environment. They have helped myriad restaurateurs survive the pandemic. They have been providing services to the customers at a time when every other restaurant model was disrupted by lockdowns and restricted operating hours.<\/span><\/p>\n

Let us look at various reasons that highlight the future growth potential of cloud kitchens.\u00a0<\/span><\/p>\n

1. Rise Of Online Deliveries<\/b><\/h3>\n

The entire restaurant industry was toppled due to the pandemic last year. However, the online segment soon picked up and started meeting the needs of home-bound customers. The service that used to compliment dine-in restaurants before the pandemic became their primary source of revenue during the lockdown.<\/span><\/p>\n

According to the <\/span>Posist Prime Report UAE<\/span><\/a>, one out of three restaurant professionals expects more than 60 percent of their revenue to come from online deliveries in 2021. Also, around 70 percent of the surveyed restaurateurs were interested in starting their own ghost kitchens. Since online deliveries are here to stay, so is the ghost kitchen business model!<\/span><\/p>\n

\"Online
Source: MENAbytes<\/figcaption><\/figure>\n

2. Advantages Offered By Ghost Kitchen Business Model\u00a0<\/b><\/h3>\n

Ghost kitchens are an ideal solution to the different problems faced by restaurateurs throughout the pandemic. <\/span>Numerous reasons make this restaurant model better than the others.<\/span><\/a> Following are a few advantages of the ghost kitchen business model.<\/span><\/p>\n