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India’s Cloud Kitchen Market Size to be about US$1 bn by 2023: Reports
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Tuesday, 28 July, 2020, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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Most research and consulting reports on India’s Cloud Kitchen Market Size expect it to be about US$1 billion by 2023. The cloud kitchen market is increasingly becoming a significant part of the overall food delivery market. The recent Corona virus pandemic is likely to have altered some of these numbers, but there is no stopping this obvious phenomenon of cloud kitchens.
The recent pandemic is likely to keep people away from dine-in restaurants and further cement the cloud kitchen market not just in India but globally. The below two reasons:
Given the pandemic around, most people have become very cautious about health and hygiene; this strong change in consumer behaviour has made Homefoodi, a home food delivery app that aggregates home cloud kitchens to grow by over 50% during the lockdown as compared to pre-Covid levels. With an ever-increasing demand for home-cooked meals, the company provides consumers with an array of 1,000+ dishes from over 250 home chefs for breakfast, lunch, snacks and dinner. The company is about everything that can be cooked and baked at home and hence the options are limitless.
The company being a renowned home cloud kitchen aggregator has been growing since its launch in October 2019. Every month has been a growth story and they have been exceeding their defined business goals as well.
Commercial cloud kitchens face the following 3 key challenges
1. Dependence on food aggregators for orders
2. Inventory management for orders and wastage
3. Hygiene and food quality standards
Only once the above challenges are resolved, can a commercial cloud kitchen have a successful and inspiring story to share. Here's a wider look into the challenges:
Dependence on Food Aggregators for Orders: For a cloud kitchen to shoot up with flying colours they depend majorly on food aggregators, which in turn provide a platform to them. However, one must review each aggregator before going on-board with the said aggregator.
Inventory Management for Orders and Wastage: A management of orders and wastage is of utmost priority without one a cloud kitchen can easily end up having more to give-up than to achieve. An appropriate management maintains the logistics that help create a win-win situation for both the food aggregator as well as the cloud kitchen.
Hygiene and Food Quality Standards: A challenge of utmost priority that needs to be curbed and looked after at any cost. No consumer has been or will be ever attracted to food or a cloud kitchen that neglects hygiene and food quality standards.
Home cloud kitchens score over commercial kitchens as far as the above challenges are concerned. The concept of home cloud kitchens is fast evolving as the next frontier in cloud kitchen market. However, to leverage the home cloud kitchen opportunity, one has to partner with a trusted and successful home food delivery app.
For a home cloud kitchen food delivery application to be successful the following demands must be met:
1. Supply ecosystem of talented home chefs.
2. Simple platform uniquely built for home chefs.
3. Adequate demand generation.
The Supply Ecosystem of a home-food aggregator must be able to identify talented home chefs and convince them to collaborate which can be only solved by an expert front-end team and a robust selection process that involves food tasting and checks for cleanliness and hygiene. The technology platform should be user-friendly for home chefs to address limitations and allow customisation that suits their working and cooking style. The aggregator should be able to create marketing awareness and adoption through adequate demand generation. There is an untapped and growing demand for home food and companies should solve the above for the flywheel to move.
“We aim to create India's largest community of talented home chefs who are passionate about cooking and committed to serve healthy, fresh, hygienic and delicious home food delicacies to customers,” stated Narendra Singh Dahiya, founder and director, Homefoodi.
Every country has observed a noticeable shift in people trusting healthy and hygienic home food over restaurant and outside food in general. The company is empowering every homemaker to overcome all their challenges to become a successful home chef. We have made it extremely convenient for every homemaker to solve all their challenges to start a ‘home cloud kitchen’ be it banking, FSSAI registration, food photography, packaging, delivery, online payments and marketing. Every home chef is ably supported to ensure a seamless on-boarding on the platform with adequate training to understand the market potential and leverage every opportunity.
“We are delighted that we are enabling a healthy India by serving people healthy and nutritious home food,” added Dahiya.
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