Considerations for Setting Up a Cloud Kitchen | Oracle

What are the disadvantages of cloud kitchens?

Competition in cloud kitchens can be fierce. You’re competing in a crowded online marketplace, and customers are able to use a delivery app to scroll through many brands in the convenience of their home.

Running a cloud kitchen means missing out on the walk-in traffic provided by a storefront. The reason you pay more money to rent for a storefront is because people will walk into your restaurant. That’s not the case when you turn on UberEats or DoorDash.

On top of that, you’re constrained by the location of the kitchen you operate from (usually a 3-5 mile delivery radius). While rent may be attractive in low-income areas, you may not be in the right area to find suitable customers.

Something else to consider is that a delivery-only brand’s reputation relies on the food arriving at the customer in perfect condition. Factors out of the restaurant’s control can impact food quality, such as delivery drivers stopping for a coffee or running late. Maintaining a high standard of food quality is critical to drive repeat orders.

There are significant challenges in keeping the product at proper temperatures so it arrives as intended to the customer, and to ensure it’s safe to eat. This means testing out different types of packaging and potentially investing in containers that are more expensive and harder to source.