Concept of virtual kitchen inrelation to food service industry.
The research study will look at the validity of the concept of a cloud kitchen can have on the Maltese food
and beverage market. The concept could have several possible value add outcomes that can positively impact
the Maltese food and beverage offering by looking at how this model can evolve to be tailored to suit the
Maltese business, in particular outcomes in relation to improved operational efficiency and better customer
service offering. Data shows that there is an increased interest in the food home delivery market.
Introduction
The cloud, ghost or virtual kitchens is a relatively new concept within the foodservice industry that in its
16/03/2022, 09:38 Writers Hub - Freelance Writing
https://www.writershub.org/writer/orders/845544#instructions 4/5
simplest form is set up as a delivery only platform, with other possible additions to the final set up. The idea
is that these "virtual" restaurants do not own a brick and mortar venue where clients can come to dine or
collect take away food. The offering is generally only available as a home delivery option mainly through a
third-party delivery service. As a general principle the cloud kitchen restaurant operates on the same concept
as a traditional restaurant wherein the food is prepared once ordered. This offers the option to have a degree
of customisation of menu items and dishes.
This type of business model set up is becoming increasingly popular in areas where rental rates are
considered very high, thus rendering the business model of the restaurant untenable from a financial
perspective. The rational of securing a prime location for a restaurant, which includes its own kitchen, that
has enough frontage, visibility and is accessible to a volume of foot traffic, thus rendering the restaurant
viable, often means that this comes at a premium rate.
Research is showing that there is potential for local investment in a cloud kitchen as this model is in a rapid
growth stage. International markets are forecasting increased revenues, profitability and sustained growth
well into 2027. This makes the study relevant and exciting to the researcher as the paper will look into
developing a “live” business model for a dark kitchen in Malta that will evaluate the positive impacts on the
profitability of a food retail business operating from a cloud kitchen, by assessing the impact of rent
reductions, improved productivity and the ability to pivot the business based on supply and demand.
THE PART I WANT IS THE LITERATURE REVIEW BASED ON THE ATTACHED DOCUMEN