The COVID-19 pandemic has led to a surge in the number of cloud kitchens, with many restaurants operating solely through platforms like Swiggy and Zomato. These cloud kitchens can run multiple restaurant brands from a single location, leading to concerns about the quality and authenticity of the food. One individual, Ramjani Khan, was found to own and operate two cloud kitchens in Bangalore, running a total of 400 restaurant listings on Swiggy and Zomato. This raises questions about the legality and regulation of such practices, as well as the lack of transparency for consumers. The restaurants associated with these cloud kitchens have poor ratings and often duplicate the names and cuisines of more popular establishments, potentially misleading customers. Stricter checks and clearer visibility on the platforms are suggested to address these issues and protect consumer interests.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Boom in cloud kitchens | Increase in number of cloud kitchens | More widespread use of cloud kitchens | Demand for food delivery services |
| Multiple restaurant brands from one kitchen | Consolidation of restaurant operations | More efficient and cost-effective restaurant models | Streamlining operations and maximizing profits |
| Difficulty in identifying shared kitchens | Lack of transparency in restaurant info | Improved visibility of shared kitchen information | Consumer demand for transparency and accountability |
| Same FSSAI license for multiple restaurants | Possible violation of regulations | Stricter regulations and enforcement | Lack of clear guidelines and oversight |
| Duplicates and knock-offs of popular brands | Misleading and confusing restaurant names | Enhanced measures to prevent brand infringement | Lack of oversight and quality control on platforms |
| Poorly rated and reviewed restaurants | Decreased trust in online food ordering | Improved quality control and customer feedback | Lack of quality control and accountability on platforms |
| Need for due diligence in online food ordering | Increased awareness and caution | More informed and cautious online food ordering | Consumer education and awareness |