A cloud kitchen, also known as a ghost kitchen or virtual kitchen, is a commercial kitchen space that provides food businesses with the facilities and services needed to prepare menu items for delivery and takeout. Here are some key points about the cloud kitchen concept:

• Cloud kitchens are delivery-only restaurants with no physical space for dine-in or takeaway.
• They rely entirely on online orders placed through online food aggregators or an online ordering-enabled website or mobile app.
• Cloud kitchens can be used to launch an entirely new business or concept, also known as virtual restaurants or virtual brands.
• They allow food businesses to create and deliver food products with minimal overhead, as they dont have to worry about high rental costs, large capital investments, restaurant interiors, guest facilities, and front of house staff.
• Cloud kitchens can be set up in two ways: shared space and dedicated space. In a shared space cloud kitchen model, restaurant owners use their own staff and produce, but the space and equipment are owned by a third party. In a dedicated space cloud kitchen model, a brand rents or purchases a space solely for their own use.
• Cloud kitchens provide shared kitchen space for delivery-only restaurants where they can test their operation expansions.
• Most cloud kitchens partner with third-party delivery services or food aggregators to handle their food deliveries.
• Cloud kitchens offer several advantages over traditional restaurants, including lower operating costs, low startup costs, reduced maintenance, and lower costs.
• Cloud kitchens are considered the smarter way to run the restaurant business and are marching ahead at the highest CAGR (Compound Annual Growth Rate) among other segments in the restaurant industry.