With the inexorable expansion of technology into all aspects of life, it was inevitable that the hospitality business would get infected with a love of technology and a dash of profit. The most recent and trendy point in the hotel sector has to be the cloud kitchen, which has witnessed a fivefold gain in worth in the previous five years.

A cloud kitchen, often known as a virtual restaurant, is a facility where a kitchen is set up with no dine-in option and instead just delivery. The distinction between them and their competitors is the low investment-high profit margins, which makes it ideal for various delivery apps that specialize in offering delivery to the growing working class in the majority of the economies.

The special recipe for exponential growth is

1. Not the food instead it is the technology or cloud because of a data-driven approach that drives the growth of these kitchens as they focus on the food consumption patterns of the customers available in the locations nearby.
2. Flexible menu as being online restaurant owner can change the menu at any point in time without having to worry about upgrading signs or printed materials.
3. Comparatively lower cost when compared to a traditional restaurant as there is no cost invested in decorations.
4. Promotion is relatively easy as their promotions are taken care of by the food-delivering apps thus their overhead cost drastically decreases.
5. Aside from technology, significant expenditures are invested in core business activities which include well-equipped kitchen equipment and well-trained chefs.

As is commonly understood, a coin has two faces; similarly, the cloud kitchen, while a revolution in the food sector these restaurants have their fair share of set of setbacks, as they face the issue of taste which is that the taste that one has developed as a regular client would always select the highly trusted local brand over them. Apart from that, owing to their online-only services, they are unable to simply serve consumers outside a radius of 5-6 km. Furthermore, one of the biggest challenges is the sample size of the data they are obtaining, because if the sample size is tiny, the decision made could go either way.

Thus, cloud kitchens are here to stay, whether one like it or not. Traditional restaurant, on the other hand, are also not going away either. The main point of the industry is that the sector has just recently been split into two different segments i.e., sit-down restaurants and delivery-only eateries.