While cloud kitchens offer numerous benefits, they are not without challenges. The lack of face-to-face guest interaction can pose a hurdle to build a brand identity.

According to a recent report by Google and Boston Consulting Group (BCG), the Indian food delivery industry is projected to grow from $4 billion in 2019 to over $8 billion by 2023.

The ongoing commitment to innovation and the adoption of cutting-edge technologies not only enhance operational efficiency but also influence how food is prepared, packaged, and ultimately delivered.

As urbanization and hectic lifestyles continue to shape consumer preferences, cloud kitchens and delivery platforms are poised to become the future of the Indian food industry.

According to experts, the cloud kitchen market in itself will become a $2 billion industry in India by 2024, as compared to $400 million in 2019.

Virtual kitchens offer several advantages over traditional restaurants. For one, they have lower overhead costs since they don't need to invest in a front-of-house space, furnishings, or staff.

Keeping a close eye on the 5 points above can actually work wonders for a restaurant in the online business.

Not just restaurants, food delivery business and cloud kitchen brands have also set their expectations high from this budget as they have contributed a lot in building a digital first approach nation.

The online food delivery segment in India operates mainly under two business models: Restaurant food through consumer delivery, in which meals are ordered online through a restaurant website and delivered directly by the restaurant.

The app marketplace is extremely crowded and building awareness and getting users to download your app is hard.

According to a report by Redseer, the dark kitchens are bound to witness five times the growth in gross merchandise value to $2-3 billion by 2025.

Vedant Pasari is the founder of cloud-kitchen brand edabba established in the year 2019, currently operating out of 6 kitchens in Kolkata.

When asked what types of loyalty programs they're subscribed to, internet users placed restaurants high on the list, just after retail, supermarkets, and pharmacies.

After taking decisions based on location and city, sometimes it's all about order volumes and calculating the profit loss metrics.

Research and reports also showed that items such as biryani boxes, pizza, pasta, sandwiches, and burgers were some of the top-ordered items during 2020-2022 while placing orders online via delivery channels or restaurant partners.

To operate a cloud kitchen, the business owner needs to have a license for business operation, alcohol, food service, building occupancy, employer identification number, and employee health.

Offering minimum guaranteed orders to vendors, price protection, flexibility in worker hiring, financial support to vendors, and so on are some corrective measures that the industry should adopt.

52 percent of food service operators placed their bets on setting up a Cloud Kitchen or a delivery-only outlet of their brand.