Trends #0001 — Cloud Kitchens

Photo of food being flamed (flambéd) in a wok

Food delivery apps are creating the chance for delivery-only restaurants to thrive.

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🔍 Problem

Traditional restaurants will lose in the delivery game unless they optimize.

🏁 Players

Cloud Kitchen Providers

Cloud Kitchen Restaurant Groups

Cloud Kitchen Dropshipper

🔮 Predictions

  • Casual dining will become harder to find.
  • Most restaurants will focus on efficiency or experience.
  • We will cook for the experience instead of cost savings.
  • More apartments will be built without full kitchens.
  • Delivery-only restaurants will evolve faster as setup costs drop.

☁️ Opportunities

  • Rent cloud kitchen space
  • Build cloud kitchen equipment
  • Start a delivery-only restaurant
  • Start an upscale restaurant
  • Make packaging for delivery restaurants
  • Build software to track and improve delivery-only restaurant operations

😠 Haters

“This isn’t new. Takeout/delivery joints have existed forever.”
Yes, but, recent logistic improvements and friction reduction takes this to another level.

🔗 Links

  1. Virtual Kitchen Documentary — HNGRY
  2. Delivery Only: The Rise Of Restaurants With No Diners As Apps Take Orders — NPR
  3. How to start your own delivery-only, virtual restaurant — The Food Corridor
  4. A16Z Virtual Kitchen Co Investment Thesis — A16Z
  5. Ghost Kitchens: Their Rise and Why They’re Here to Stay — FsR
  6. Why ‘ghost’ restaurants are changing the delivery game — Restaurant Dive
  7. The Rise of the Virtual Restaurant — New York Times
  8. Is Tech Destroying Restaurants? — Slate
  9. Ghost kitchen — Wikipedia
  10. Million Dollar Brainstorm – Cloud Kitchens, Kava Bars & Religious Products — My First Million