Challenges in the cloud kitchen business

One of the cons of running a cloud kitchen is that you have zero visibility.

As an owner of a cloud kitchen, you have no way of promoting or marketing your brand with walk-in traffic.

Also, you are, in a way, severely accountable to these food delivery apps.

For example, you’ll likely be out of business if they decide to favour some other restaurant.

Or, if they choose to charge you a premium—5% more, you don’t have any leverage or bargaining power with these food delivery service apps.

And the big challenge is: you don’t own your customers. The delivery app owns your customers.

In a food-based business, it’s all about the community—getting your loyal customers to come back again and again to have and enjoy your offerings.

So, in the food and beverage industry, you must be able to build your customer profile, which the cloud kitchen model lacks.

Having acknowledged the shortcomings, the cloud kitchen model is in its infancy and still has potential for growth and change.

And as with any new phenomenon, here, too, flocks of people are finding their way in, opening up doors for investment.