Table of Contents
Cloud Kitchen Market Overview
A cloud kitchen, also known as a ghost kitchen or virtual kitchen, is an online-only food delivery operation that operates without a physical dining area. These kitchens often host multiple virtual restaurant brands under one roof, providing a cost-efficient way to offer various cuisines. They rely on partnerships with food delivery apps for order fulfillment and use data analytics to adapt to consumer preferences.
Cloud kitchens are highly scalable and can operate from less expensive locations, making them a popular choice for businesses in the online food delivery space. However, they face competition and the challenge of marketing effectively in a crowded market.
Market Drivers
The global cloud kitchen market is on the rise due to several key drivers. A surge in demand for food delivery and takeout services, coupled with the cost-effective nature of cloud kitchens, has attracted both startups and established food brands.
These kitchens offer diverse menu options, leverage data-driven insights, and collaborate with popular food delivery apps, making them a convenient choice for consumers. Their scalability, accelerated by the COVID-19 pandemic and changing consumer preferences, has further fueled their growth, all while reducing operational risks.
Market Size
In 2022, the worldwide cloud kitchen market had a worth of $63.9 billion, and it is projected to attain $194.6 billion by 2032. It is expected to exhibit a compound annual growth rate (CAGR) of 12.1% from 2023 to 2032.
List of Major Companies
These are the top ten companies operating in the Cloud Kitchen Market:
- Kitchen-United
- DoorDash
- CloudKitchens
- Rebel-Foods
- Swiggy
- Toast
- Yum-Brands
- Firehouse-Subs
- Starbucks
- Lightspeed-Commerce
Kitchen-United
Company Overview
| Establishment Year | 2017 |
| Headquarter | Pasadena, California, U.S. |
| Key Management | Michael Montagano (CEO) |
| Revenue (US$ Bn) | $ 63 Million (2022) |
| Headcount | ~ 82 (2019) |
| Website | http://www.kitchenunited.com/ |
About Kitchen United
Kitchen United, founded in 2017 and based in Pasadena, California, specializes in shared kitchen spaces and technology solutions for the food service industry. They provide commercial kitchen facilities shared by multiple restaurant brands, emphasizing the virtual kitchen concept. This allows restaurants to create online-only delivery brands, reducing operational costs.
Kitchen United integrates technology for order management and analytics and strategically selects urban locations. They’ve expanded across the United States, facilitating partnerships with a range of restaurant brands. Kitchen United addresses the rising demand for online food delivery and takeout while offering cost-effective solutions for food businesses looking to adapt to changing consumer preferences.
Geographical Presence
Kitchen United, a company offering kitchen space and services to food businesses like restaurants and ghost kitchens, operates in several major US cities. Some of the cities included Pasadena, Chicago, Scottsdale, Austin, Columbus, Atlanta, Los Angeles, Denver, New York City, and San Francisco.
Recent Developments
- In November 2023, Kitchen United, a well-known player in the ghost kitchen industry, shuttered all its Kroger food hall locations. This surprising decision seems to be a pivotal shift in Kitchen United’s strategy, transitioning from physical establishments to a software-focused approach.
- In November 2023, Duck Donuts revealed plans for its inaugural food hall venue, a collaboration with Kitchen United, in Santa Monica. This digital ordering food hall is owned by Gary Kopel, who is a multi-unit franchise partner for Duck Donuts in California.
DoorDash
Company Overview
| Establishment Year | 2013 |
| Headquarter | San Francisco, California, United States |
| Key Management | Tony Xu (CEO) |
| Revenue (US$ Bn) | $ 6.5 B (2022) |
| Headcount | ~ 16,800 (2022) |
| Website | https://www.doordash.com/ |
About DoorDash Inc
DoorDash Inc., headquartered in San Francisco, California, is a leading on-demand food delivery and logistics company. Founded in 2013, it connects customers with a wide array of restaurants and eateries through its online platform and mobile app.
DoorDash’s extensive restaurant network, delivery services, subscription offering (DashPass), and white-label delivery platform (DoorDash Drive) have propelled its rapid growth. The company operates with a fleet of independent contractors known as Dashers and has a significant presence in multiple countries, making it a major player in the global food delivery industry.
Geographical Presence
DoorDash is most active in the United States, where it has a widespread presence across thousands of cities and regions. It covers urban and suburban areas, as well as some rural regions. Major cities like New York City, Los Angeles, Chicago, San Francisco, and many others have a robust DoorDash presence.
DoorDash expanded its operations into Canada in 2015. It serves several Canadian cities, including Toronto, Vancouver, Montreal, Calgary, and Ottawa, among others. DoorDash made its entry into the Australian market in 2019. It operates in cities like Sydney, Melbourne, Brisbane, Adelaide, and Perth.
Recent Developments
- In November 2023, DoorDash, a local commerce platform, partnered with Best Buy, the world’s largest specialty consumer electronics retailer. This collaboration enables the on-demand delivery of consumer electronics from all Best Buy stores across the United States.
- In November 2023, DoorDash, in collaboration with GEN i.e. Global Entrepreneurship Network and Hello Alice, allocated $440,000 in grant funds as part of the Restaurant Disaster Relief Fund. This program offers $10,000 relief grants to restaurants affected by emergencies or natural disasters, extending its reach to include Canada, Australia, New Zealand, and the U.S. for the first time.
CloudKitchens
Company Overview
| Establishment Year | 2016 |
| Headquarter | Los Angeles, California, U.S. |
| Key Management | Travis Kalanick (CEO) |
| Revenue (US$ Bn) | $ 38.1 Million (2022) |
| Headcount | ~ 4000 (2022) |
| Website | http://cloudkitchens.com/ |
About CloudKitchens
CloudKitchens specializes in shared kitchen spaces and support services for food delivery businesses. They offer a platform for creating virtual restaurant brands that exclusively serve online orders and delivery. With a strong emphasis on technology, CloudKitchens provides a cloud kitchen management system for efficient order preparation and logistics.
They strategically choose locations in high-demand areas, reducing overhead costs for their restaurant partners. This delivery-centric model aligns with the growing demand for online food delivery and cost-effective solutions in the food service industry.
Geographical Presence
In the United States, the company had a significant presence in major cities such as Los Angeles, Chicago, Miami, New York City, and San Francisco, strategically targeting areas with high demand for food delivery services.
CloudKitchens was also expanding into Europe, considering cities like London and Paris due to their robust food delivery markets. Additionally, they were exploring opportunities in the Asia-Pacific region, the Middle East, and Latin America, where food delivery and ghost kitchen concepts were gaining traction
Recent Development
- In November 2023, CloudKitchens launched its inaugural ghost kitchen in Sacramento. This expansion presents an exciting opportunity for both existing and prospective partners to grow their operations and reach a broader customer base.
- In November 2023, CloudKitchens introduced a second ghost kitchen featuring dining areas in San Jose, and it has already reached full occupancy, with all seats reserved weeks before its official opening.
Rebel-Foods
Company Overview
| Establishment Year | 2011 |
| Headquarter | Mumbai, Maharashtra, India |
| Key Management | Jaydeep Barman (CEO) |
| Revenue (US$ Bn) | $110 Million (2022) |
| Headcount | ~ 6000 (2020) |
| Website | https://rebelfoods.com/ |
About Rebel Foods
Rebel Foods, formerly Faasos, is a global food technology company headquartered in Mumbai, India. They specialize in running cloud kitchens and creating a diverse portfolio of virtual restaurant brands.
Operating in multiple countries worldwide, Rebel Foods utilizes technology and data analytics to optimize their menus and streamline food preparation, while collaborating with top delivery platforms to reach a wide customer base. With a commitment to innovation and sustainability, they cater to various cuisines and respond to the growing demand for online food delivery.
Geographical Presence
Rebel Foods, previously known as Faasos, boasts a significant geographical presence primarily in India and several other nations. In its home country, India, the company operates in numerous cities such as Mumbai, Delhi, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata, among others.
Beyond India, Rebel Foods has been expanding its reach internationally, with a presence in countries like the United Arab Emirates (UAE), Saudi Arabia, Indonesia, Thailand, Malaysia, the United Kingdom, and the United States, primarily through its brand “Biryanis and More.”
Recent Developments
- In March 2023, Wendy’s, a fast-food restaurant chain based in the United States, entered into a partnership with Rebel Foods, an Indian cloud kitchen operator, to expand its presence in India. The plan is to open 150 physical Wendy’s restaurants across the country over the next ten years.
- In January 2023, Rebel Foods revealed the introduction of an omnichannel approach aimed at providing a fresh customer experience.
Swiggy
Company Overview
| Establishment Year | 2014 |
| Headquarter | Bangalore, Karnataka, India |
| Key Management | Sriharsha Majety (CEO) |
| Revenue (US$ Bn) | $710 M (2022) |
| Headcount | ~ 6000 (2023) |
| Website | https://www.swiggy.com/ |
About Swiggy
Swiggy, headquartered in Bangalore, India, is a leading online food delivery and restaurant discovery platform. Established in 2014, it connects customers with various restaurants, offering diverse cuisines and dining options.
Swiggy also provides services like Swiggy Super, Swiggy Genie, and grocery delivery, in addition to its core food delivery service. Leveraging technology and a vast restaurant network, Swiggy has become a prominent player in the Indian market, adapting to changing consumer preferences and expanding its geographical presence.
Geographical Presence
The company operates in numerous major cities and towns across the country, including Delhi/NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Jaipur, Chandigarh, Lucknow, Kochi, Indore, Nagpur, and Coimbatore, among others.
Swiggy has been known for its continuous expansion efforts, aiming to serve more customers and partner with an ever-growing number of restaurants.
Recent Developments
- In December 2023, Swiggy introduced a “Pocket Hero” feature designed to provide added advantages to budget-conscious users. This feature, currently being tested in Delhi, will grant users extra cashback and discounts of up to 60% on specific restaurant food orders.
- In December 2023, Rapido, recognized for its bike-taxi and autoaggregation services, broadened its offerings by launching Rapido Cabs, marking its entry into the cab booking sector. Supported by Swiggy, the startup reports an inventory of roughly 100,000 cabs accessible through its platform, and the service is presently in operation in Delhi NCR, Hyderabad, and Bengaluru.
Toast
Company Overview
| Establishment Year | 2012 |
| Headquarter | Boston, Massachusetts, U.S. |
| Key Management | Chris Comparato (CEO) |
| Revenue (US$ Bn) | $ 2.4 Billion (2022) |
| Headcount | ~ 3,172 (2021) |
| Website | https://www.toasttab.com/ |
About Toast Inc
Toast Inc., headquartered in Boston, Massachusetts, is a leading technology company specializing in cloud-based software and hardware solutions tailored for the restaurant industry. Founded in 2011, Toast offers a comprehensive POS system, online ordering and delivery services, restaurant management tools, and digital payment processing.
Their customer-centric approach includes CRM tools and integration capabilities, while their growing international presence reflects their commitment to serving restaurants worldwide. Toast’s success has been fueled by significant funding and its alignment with industry trends, making it a vital player in the restaurant tech sector.
Geographical Presence
Toast Inc. is headquartered in Boston, Massachusetts, and has a strong presence throughout the United States. Toast’s presence extends to major metropolitan areas across the United States, including New York City, San Francisco, Los Angeles, Chicago, and more. They have regional offices, sales teams, and support centers in many of these cities.
Recent Developments
- In November 2023, Toast, the comprehensive technology platform designed for the restaurant industry, unveiled notable enhancements to its platform. These updates encompass the introduction of a new mobile app and an improved point-of-sale (POS) system for an enhanced user experience.
- In October 2023, Toast revealed a collaboration with Gordon Food Service, a prominent family-owned food service distributor in North America. This partnership entails joint efforts to provide support to the restaurant industry in Canada.
Yum-Brands
Company Overview
| Establishment Year | 1997 |
| Headquarter | Louisville, Kentucky, U.S. |
| Key Management | David Gibbs (CEO) |
| Revenue (US$ Bn) | $ 6.8 Billion (2022) |
| Headcount | ~ 34,000 (2019) |
| Website | https://yum.com/ |
About Yum! Brands
Yum! Brands, Inc., headquartered in Louisville, Kentucky, is a multinational fast-food restaurant corporation established in 1997. It boasts a diverse portfolio of renowned restaurant chains, including KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, each with a global presence.
Operating primarily through a franchise model, Yum! Brands span numerous countries, actively engage in menu innovation, embrace digital transformation, and uphold social responsibility. Its strong financial performance and adaptability to market trends have solidified its position as a major player in the global restaurant industry.
Geographical Presence
In its home country, the United States, Yum! Brands maintains a substantial number of restaurants, featuring well-known names like KFC, Taco Bell, and Pizza Hut. Internationally, the company has a significant footprint, with a prominent presence in China, where KFC is especially popular.
Beyond China, Yum! Brands have established a robust presence in various countries across North and South America, Europe, Asia, and Africa.
Recent Developments
- In June 2023, Yum! Brands, Inc. took a significant step in its plan to improve customer digital experiences by choosing Treasure Data as its provider for a Customer Data Platform. This move aims to support customer acquisition, expansion, and retention efforts.
- In April 2023, Yum! Brands successfully concluded its exit from the Russian market by finalizing the sale of its KFC operations in Russia to Smart Service Ltd. This strategic decision reflects Yum! Brands’ shift in priorities, while also reaffirming Smart Service Ltd.’s dedication to catering to the Russian market. The transition signals a new chapter for both companies in their respective business endeavors.
Firehouse-Subs
Company Overview
| Establishment Year | 1994 |
| Headquarter | Jacksonville, Florida, United States |
| Key Management | Don Fox (CEO) |
| Revenue (US$ Bn) | $ 1.5 Billion (2023) |
| Headcount | ~ 2000 (2023) |
| Website | http://firehousesubs.com/ |
About Firehouse Subs
Firehouse Subs, founded in 1994 by brothers Chris and Robin Sorensen and headquartered in Jacksonville, Florida, is a renowned American fast-casual restaurant chain specializing in submarine sandwiches. With a commitment to quality and a firefighting-themed ambiance, the menu offers a variety of hot and cold subs, salads, and sides.
Notably, a portion of proceeds goes to the Firehouse of America Public Safety Foundation, supporting first responders. With a focus on sustainability, catering services, and a loyalty program, Firehouse Subs has expanded its presence nationally and internationally, making it a popular choice for sandwich enthusiasts.
Geographical Presence
Firehouse Subs was founded in Jacksonville, Florida, in 1994, and its first location opened there. Since then, it has expanded extensively throughout the United States. You can find Firehouse Subs restaurants in many states across the country, including Florida, Texas, California, New York, and many others.
While Firehouse Subs is primarily concentrated in the United States, it has also made efforts to expand its presence internationally.
Recent Developments
- In September 2023, Firehouse Subs and the Apparel Group revealed their intentions to expand by opening over 100 Firehouse Subs restaurants in the United Arab Emirates (UAE) and Oman in the next ten years, under an exclusive agreement.
- In July 2023, Restaurant Brands International (RBI), the company that owns Firehouse Subs, officially announced that the opening of a Swiss restaurant marks the initial step in the brand’s international expansion plan. The next destination on this journey is Mexico, where a contractual agreement has already been established.
Starbucks
Company Overview
| Establishment Year | 1971 |
| Headquarter | Seattle, Washington, U.S. |
| Key Management | Laxman Narasimhan (CEO) |
| Revenue (US$ Bn) | $ 32.2 Billion (2022) |
| Headcount | ~ 402,000 (2022) |
| Website | https://starbucks.com/ |
About Starbucks
Starbucks, often simply called Starbucks Coffee, is a well-known global coffeehouse chain and a prominent figure in the coffee industry. Although primarily recognized for its physical coffee shops, Starbucks has been actively exploring opportunities within the cloud kitchen sector. To achieve this, it has established partnerships with popular food delivery services like Uber Eats, Grubhub, and DoorDash, enhancing its delivery capabilities significantly.
These collaborations enable Starbucks to reach a broader audience while utilizing its existing delivery infrastructure. Moreover, Starbucks is making substantial investments in its mobile ordering platform and digital integration to simplify the ordering process for its customers.
Geographical Presence
Starbucks Coffee Company, founded in Seattle in 1971, has established a significant global presence. With thousands of stores in North America, including the United States and Canada, it has become a household name. Starbucks is also expanding its footprint in Europe, Asia-Pacific, the Middle East, Africa, and Latin America, with a growing number of locations in major cities. Its adaptability to local tastes and preferences makes it a global brand with a local touch.
Recent Developments
- In November 2023, Starbucks Coffee Company revealed its plans to create a new board committee called the Environmental, Partner, and Community Impact (EPCI) Committee. This decision represents an ongoing development in the company’s overall governance strategy.
Lightspeed-Commerce
Company Overview
| Establishment Year | 2005 |
| Headquarter | Quebec, Canada |
| Key Management | Jean Paul Chauvet (CEO) |
| Revenue (US$ Bn) | $ 548 Million (2022) |
| Headcount | ~ 3000 (2022) |
| Website | https://www.lightspeedhq.com/ |
About Lightspeed Commerce
Lightspeed Commerce is a prominent provider of technology solutions in the restaurant industry, with a particular focus on the emerging cloud kitchen sector. Their extensive software and services suite assists cloud kitchen operators in streamlining their operations, improving the customer experience, and driving business growth.
They offer tailored solutions to address the specific requirements of cloud kitchen businesses, spanning areas like order handling, menu and inventory management, cloud kitchen optimization, delivery logistics, and customer relations. Notably, their advanced order management system stands out, allowing for efficient order processing from various online channels, all managed through a centralized dashboard.
Geographical Presence
Lightspeed Commerce Inc. has a notable global presence, primarily focusing on serving small and medium-sized businesses (SMBs) in North America, Europe, and the Asia-Pacific regions. In North America, they have a strong foothold in the United States and Canada, providing their cloud-based point-of-sale (POS) and e-commerce solutions to a diverse range of retail and hospitality businesses.
In Europe, they’ve expanded their operations in countries such as the United Kingdom, Germany, and France, tailoring their offerings to suit local needs. Although their presence in the Asia-Pacific region was less extensive, Lightspeed Commerce was actively working to establish themselves in markets like Australia and New Zealand.
Recent Developments
- In October 2023, Lightspeed Commerce Inc. unveiled a range of new product features designed to simplify the operations of merchants. These features, including AI-driven menu creation, self-serve assortment planning, and the expansion of Lightspeed Payments, are all crafted to reduce the time-consuming tasks that burden retailers and restaurant owners, ultimately making business management more efficient and straightforward.
- In October 2023, Lightspeed Commerce Inc. extended its “Meet or Beat Promise” globally to current customers. This means that when customers switch to their unified payments and POS platform, Lightspeed will match or improve upon their existing third-party payment processing rates. If not, customers are exempt from mandatory adoption of the platform and associated transaction fees, a policy previously limited to North America.
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