Usage of data science in cloud kitchens and quick service restaurants

Abstract

With the rise of penetration of internet and smartphone, post-COVID-19, the trend of ordering food at home has picked up the pace. The market of online food delivery industry was around $11 billion in 2021, with a growth rate of about 8% expected in future (Source: Statista). The delivery only segment was almost $400 million out of it in 2019 and is expected to grow 5 times to $2 billion by 2024. Consumers who are eating-in do not care about the restaurants’ looks or their locations. Consumers are sensitive to price, service quality and food options & quality. Whereas the cloud kitchen has distinctive advantages in terms of low infrastructure and setup cost, low operational costs and very easily scalable. On the other hand, in the dine-in space demand for QSRs has significantly increased because of lower prices as well as good service quality across restaurants. Both the QSRs and cloud kitchens have started using data to gain a competitive advantage and create a moat around the business model.