Cloud kitchens: DDC & Dept of Industries hold review meeting

New Delhi: Delhi government think-tank DDC on Wednesday mooted the idea of setting up cloud kitchen clusters in industrial areas providing them various operational benefits, said an official statement.

Addressing a stakeholders' meet, Dialogue and Development Commission(DDC) Vice Chairman Jasmine Shah said the Delhi government is very hopeful about the growth potential of the concept of cloud kitchens as an industry.

Cloud kitchens are delivery-only restaurant models without any dine-in facility or walk-in customers.

Shah said its model is low-risk, cost-effective and scalable, allowing for high profit

margins even for players with less capex.

"The stakeholder consultations emphasized the importance of earmarking shared cloud kitchen spaces in industrial areas in a way that they offer infrastructure and water and electricity linkages at minimum costs and are at a feasible distance from the residential areas," said Industries Department Secretary Niharika Rai.

Cloud kitchen clusters can provide the whole segment with adequate space to expand within existing industrial areas with access to industrial power tariff, which is lower than the commercial rates, and possible exemption from dine-in regulations. As the setting up of such clusters would not require change of land use, they may be exempt from conversion charges as well, the statement said.

Further, such clusters can significantly ease the process of setting up the cloud kitchens with the allocated spaces being equipped with several plug-and-play features like power connection, PNG connection, effluent treatment and common facilities like shared cold storage, parking space.

The stakeholders, including players in the cloud kitchen segment, welcomed the idea, with the suggestion to identify such industrial areas that have regular power supply and are not very far away ( preferably less than 7km) from residential clusters so as to reduce delivery time and costs, it said.