June, 2022Request Full Report
The traditional business model of having only dine-in and takeout options has evolved over time in the UAE, with many customers now preferring to consume their food at the convenience of their homes. Third-party platforms, also called food aggregators play an important role in the food and beverage sector of the UAE now, much similar to many developed countries. The food delivery platforms - Talabat, Deliveroo, and CareemNow have all experienced revenue increases in the United Arab Emirates over the last two years. Due to an increase in average order frequency and customer volume, Talabat's YOY growth in 2020 and 2021 is much higher compared to previous years.
A cloud kitchen is a restaurant kitchen that solely accepts delivery orders and does not have a dining area. Many restaurants have adopted this new business model known as "cloud kitchens," sometimes known as "dark kitchens" or "ghost kitchens. "The number of Emirati food companies that have chosen to join the Dark Kitchen ecosystem has kept increasing. In the UAE, the number of Cloud kitchens is increasing with notable brands like Kitopi, Kitch, Kitchen Nation, Kitchen Park etc., Cloud kitchens can reach customers all across the city without the need for massive facilities, and they can be more efficient than restaurants. Because of their minimal cost and wide reach, cloud kitchens are expected to become lucrative earlier than restaurants. When compared to a brick-and-mortar restaurant, the initial investment necessary to start a cloud kitchen is far lower.
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