With the technology boom, the race between restaurants for more sales has entered cloud kitchen competition in Pakistan. Even those restaurants, that were not taking technology seriously in past are now moving toward cloud kitchens because they know if they will not move toward cloud kitchens, their survival will be in danger. How did this change come to the Pakistani market? The answer is simple. The previous pandemic changes the minds of stereotypes who were not adopting technology in their businesses. During the pandemic, everything was closed even the restaurants. Only those restaurants that enjoyed sales during the pandemic were already providing delivery services. Apart from this, everyone is becoming busier and they don’t have time to visit restaurants nowadays. They want to order food instead of visiting them. This thing is also convincing restaurants to switch to cloud kitchens.
Restaurants Race Towards Cloud Kitchens
The concept of Cloud Kitchen is to provide restaurant services without owning a proper restaurant. This trend came into Pakistan after the entry of Food Panda into the Pakistani market. Food Panda allowed home chefs to make their store on their app without owning a proper restaurant where they can sell their food. They made it easy for their customers to access such cloud kitchens because they are cheaper than the restaurants and also good at quality too. More you can say, it was the best way of getting homemade food from any online platform. On the below side, we are going to tell why restaurants are now switching to cloud kitchens in Pakistan. So, check the below side for more details.
Reasons behind the conversion of Restaurants into Cloud Kitchens:
Most of the restaurants were closed during the pandemic because they were unable to bear expenses without sales. Smart people always have solutions and that is the reason some restaurants closed their physical presence and converted into cloud kitchens. On the below side, we are sharing some of the reasons why they did this thing. So, check the below side.
Cut off Expenses:
The first thing that convinces any restaurant to close its physical outlet and become a cloud kitchen is to cut off its expenses. If you have a physical restaurant then you have to pay for property rent, commercial bills, and much more. Whereas, if you have a cloud kitchen then, you don’t have to pay property rent, taxes, and much more. If you don’t think a physical outlet can bring more sales then going for a cloud kitchen is the better option.
As on the above side, we said that you can avoid extra expenses by avoiding physical places which means you have a high-profit margin. For example, if you have a restaurant and you generate 10,000 sales on a daily basis and your property rent is 25,000 per month, you have to rethink to continue this business because with a low margin you will not survive. On the other hand, if you are generating sales of 10,000 per day and you don’t have to pay 25,000 in the name of property rent then it would be more profitable.
Lack of Customers:
When opening a new restaurant means low customers because it will take time to build loyal customers. Starting with a cloud kitchen and introducing your taste is a great way of starting a restaurant business in Pakistan. If people start liking you then you can go for a physical outlet too.
People are becoming busier day by day and that is the reason they don’t have time for going out for lunch or dinner. They prefer to order food instead of visiting any restaurant during their office timings etc. By keeping this in mind, you can target those customers by providing cloud kitchen services in Pakistan.
People who are thinking about Restaurants Race Toward Cloud Kitchens must clear their minds that the business of the restaurant industry will be half by 2030 in Pakistan. There are many reasons behind this and some of them are mentioned on the above side.