A Study on Cloud Kitchens and Their Impact on Restaurants in Coimbatore

Cloud kitchens are a new business concept in the restaurant industry due to the swift expansion of online food delivery service. Cloud kitchens do not have dine-ins and are based only on online orders, which allow keeping operation costs lower and expanding into a more extensive market. This paper seeks to examine the principle of cloud kitchens and how they affect the conventional restaurants. Primary and secondary data is the foundation of the research and the data collection is based on questionnaires, journals and industry reports. The analysis shows that cloud kitchens can have a large impact on consumer choices, risk further competition, and promote digital and hybrid forms of traditional restaurants. The researched work concludes that the concept of cloud kitchen is transforming the restaurant industry and will remain crucial in its further evolution. Cloud kitchens are one of various disruptive technologies that have transformed the restaurant industry as a result of the growing demand of online food delivery. This paper will examine the rise of cloud kitchens and assess their effects on the traditional restaurants that have a dine in facility. The descriptive research techniques included the collection of data concerning consumers and secondary sources including research articles and industry reports. The analysis confirms that cloud kitchens are cost efficient, flexible in their operation and decision making is based on technology. They are however, also threats to the usual restaurants in the form of competition and loss of footfall. The study notes that the traditional restaurant must embrace hybrid approaches in an effort to stay competitive in the changing food service market.