by Naji Haddad, Middle East General Manager at Deliverect
It’s no secret that the on-demand food industry is booming and has significantly capitalized on the shift in consumer behaviors driven by the global pandemic and mobile technology expansion. Customer demand for outstanding food delivered directly to their door is rising. According to a report by BusinessWire, the global delivery industry is now projected to be a potential market that will cross the $154.34B mark by 2023.
And that’s big news for dark kitchens (also known as dark kitchens), a new business model that’s also booming and has six different models, each with its pros and cons. Let’s have a quick look:
This diversity in such a new business model is at least fascinating and opens new opportunities, but it also raises a big question…
Is there a future for dark kitchens?
Thanks to Millennials being the driving force, by 2026, the restaurant-to-home delivery industry will be a $500B market globally with an annual growth rate of 8.29%.
Millennials spend most of their income on online food ordering because they like to taste different cuisines that offer a quick and smart solution to save time. They also have high purchasing power and prefer third-party delivery sites (with over half (54 percent) ordering this way). As a digital-first generation, millennials are critical of their experiences and enjoy sharing reviews and feedback online.
That is why a brand’s strong digital presence is essential, and providing excellent services is crucial. And that implies an evolving relationship with customers and their new habits, leading to more considerable revenue in an industry expected to be worth $1 trillion by 2030.
But to do so, brands need to be in the right place at the right time, which means adding channels and virtual brands. Even when the dark kitchen market is booming and has a promising future, not all of its players will take advantage of it.
Dark kitchens can move further and capitalize on the wave by expanding their channels and look for efficiencies! Through optimization and more visibility, sales will grow. In fact, recent research shows that restaurants lose 20% average profit by not having an online presence. By adding new channels and working with virtual brands, the same space is optimized to operate efficiently. That means more reach, more market share, and more revenue.