Is Cloud Kitchen here to Flourish or Fade? - Research by Richa Misra, Shalini Srivastava from Jaipuria Noida The Indian hospitality industry has emerged as one of the prominent industries that drive the growth of the Indian service sector. There are two kinds of online food delivery platforms. The first type is the “aggregators,” which …
Is Cloud Kitchen here to Flourish or Fade? – Research by Richa Misra, Shalini Srivastava
Is Cloud Kitchen here to Flourish or Fade? – Research by Richa Misra, Shalini Srivastava from Jaipuria Noida
The Indian hospitality industry has emerged as one of the prominent industries that drive the growth of the Indian service sector. There are two kinds of online food delivery platforms. The first type is the “aggregators,” which emerged roughly 15 years ago; the second is the “new delivery” players, which appeared in 2013. Both allow consumers to compare menus, scan and post reviews, and place orders from a variety of restaurants with a single click.
The aggregators simply take orders from customers and route them to restaurants, which handle the delivery themselves. New delivery players like Zomato build their own logistics networks, providing delivery for restaurants that do not have their own drivers. The online food aggregator has established a new model for small restaurateurs, popularly known as ‘cloud kitchens’. A cloud kitchen is a delivery-only restaurant with no actual dining space. It is solely based on online orders placed through Online Food Delivery operators (OFD). Would cloud kitchen turn out to be another “bubble” that would burst after draining investors’ funds?
This is not likely to happen, according to researchers (Richa Misra and Shalini Srivastava) from the Jaipuria Institute of Management, Noida. They contend that OFD operators who can offer a value proposition and are aware of the factors that motivate the customer to order food online will win customer satisfaction.
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The food-ordering website for customers should make it easier for all types of users, especially first-time users. From the customers’ perspective, most consumers choose to buy goods and services online because they are presented with a sense of control over their order that allows them to customise their order, select from various restaurants, compare prices and menus, and track their order. To meet the expectations of customers, OFD must offer users the perception of control and convenience. Cloud kitchens will increasingly need to handle hygiene as COVID has increased awareness of cleanliness and dietary composition.
The pre-pandemic preference for ordering in and takeaways received an immense boost due to the pandemic-induced restrictions, which negatively impacted dine-in business. The restaurant owners did experience a decline in dine-in business, but takeout and delivery have been on the rise. As a result, the demand and supply sides of the cloud kitchen industry were driven to increase, and a sizable number of dine-in players were observed switching to the cloud kitchen model.
The implication of the study will be helpful in framing an effective electronic ordering strategy. The hospitality industry is very competitive, and it is essential to understand the needs and desires of the people. The food operators need to enhance the consumer experience with the food ordering web portal in terms of simplicity and control while eliminating the constraint of human interaction. It is time to implement these effective strategies to help your Cloud Kitchen business to the next level!
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Full research paper can be accessed here Misra, R., & Srivastava, S. (2021). Enhancing Perceived Credibility During a Pandemic: Exploring Factors Affecting Consumer Behavioral Intention in an Online Ordering Environment. Journal of Electronic Commerce in Organizations (JECO), 19(4), 40-63. DOI: 10.4018/JECO.2021100103
