How does the business model of cloud kitchens work?

Cloud kitchens, also known as virtual kitchens or ghost kitchens, operate on a unique business model that capitalizes on the growing demand for food delivery services. These kitchens are centralized hubs equipped with commercial-grade kitchens, where multiple food brands operate without a physical storefront. By eliminating the need for costly dine-in spaces, cloud kitchens significantly reduce overhead costs, making them an attractive option for entrepreneurs and restaurant operators. These kitchens often partner with food delivery platforms to reach a wide customer base. They may feature their own brands or provide infrastructure and kitchen space for established food brands to fulfill delivery-only orders. With the rise in online food ordering, cloud kitchens have gained popularity as a cost-effective and efficient way to meet the demand for food delivery services.

This mind map was published on 8 November 2023 and has been viewed 161 times.