How ‘cloud kitchens’ will change the way we eat

Some restaurants are ditching everything but the kitchen.

With no dine-in option, they’re focusing on food deliveries. And the tech industry is giving them a leg up.

If you’ve heard the phrases “cloud kitchens” or “shared kitchens” being thrown around, then you’ll know this vertical is taking off right now.

It generally works like this: a startup finds a space in a cheap part of a city, then fills it with kitchens that it rents out to fledgling food businesses. Then riders swoop in to do the deliveries.

Cooking up a storm

Analyst Ming Lu, who publishes on Smartkarma, sees the shared kitchens boom as part of the rise in things shared through apps, from cars to umbrellas. Plus, it syncs nicely with shifting lifestyle trends.

“Young people do not like cooking, even after getting married,” says Lu.

It might not be good news, however, for one particular group.

“It [has] a negative impact on existing restaurants. A startup competitor can provide food delivery without paying rentals – a lower entry barrier or moat, but it’s good for startups,” Lu adds.

Arguably the biggest name involved in this shared kitchens niche is Uber founder and former CEO Travis Kalanick.

After resigning from Uber mid-2017 following a catalog of calamities, Kalanick bought into Los Angeles-based CloudKitchens and then slid into the CEO chair.

Kalanick’s new venture argues that it’s insane how the vast majority of food delivery takes place in brick-and-mortar restaurants, which are located in pricey real-estate and are not suited to large delivery volumes.

“With faster permitting time and kitchens ready to go, launch in just a few weeks,” says CloudKitchens’ website as it lures in new tenants for its kitchens.

Kalanick’s startup doesn’t do its own deliveries. Instead, it’s open to any service that wants to pick up from its vendors, such as UberEats, Postmates, or Doordash.

Southeast Asian flavor

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