Ghost or Cloud Kitchen Vs Dine-in Restaurant: What is the major difference?

Date : August 24, 2020 Author : Bhavesh Parmar

Every invention is born out of necessity. The success of food delivery has laid to the invention of a cloud kitchen or ghost kitchen. Cloud or ghost kitchen is born out of the necessity of easing and simplifying the food delivery solutions. Unlike restaurants, it does not need much investment or set-up. We will help you understand the major difference between Cloud kitchen and Dine-in restaurant. 

Future of the restaurant industry: Online Food Ordering Kitchens 

Isn’t it obvious to understand the future of the restaurant industry after experiencing the ongoing pandemic? During the pandemic, the only business segment that boomed is the on-demand delivery market. The on-demand delivery business including the food delivery solutions and the grocery delivery solutions recorded the lifetime high sales amidst the pandemic. People now are not opting for a dine-in idea because of several risk factors, the cloud kitchen concept, therefore, got a great response as it provides only delivery feasibility to the customers. 

How Cloud Kitchen Online Ordering System Came into Existence?

The concept of the cloud kitchen is two years old. The story takes us back to 2018 when two innovative personalities Ken Chong (Uber Marketplace- Product Lead) and Matt Sawchuk came together with the concept of opening a cloud kitchen with the help of Chef Andra Radonich. Both the founders conducted deep research on food delivery business and how it is impacting the dine-in concepts. Later, they brought the concept of a cloud kitchen or ghost kitchen into existence.

Investor’s Corner: Cloud Kitchen Online Ordering System Vs Dine-In Restaurant

If we try to compare the cloud kitchen online food ordering system with dine-in restaurant, we get to understand one thing that both the platforms have its unique benefits and USP. But from the investor’s point of view, a cloud kitchen concept is highly beneficial as it involves less finance and effort. 

Cloud Kitchen vs Dine-in Restaurant Sector To Reach USD 2.63 Billion By 2026

Let us explore the differences between the two food delivery solutions. 

  • Location 

Location is the most important factor that differs the cloud kitchen concept from the dine-in concept. In a dine-in restaurant, the customers visit the location and experience the fine-dining luxury by choosing their seats or table. The cloud kitchen is a totally different concept. Here there is no location that offers a dine-in facility. Customers can only order the food online via app or call, which is later delivered with the help of a fleet delivery service. 

  • Investment Cost

The second factor that differentiates the two is the investment cost. The investment required for the cloud kitchen is quite less in comparison to the dine-in restaurant. The dine-in restaurant requires great interior, furniture set-up, kitchen setup, customer waiting for longue, lighting setup, service staff and quite a large space including the dine-in, cleaning and sanitary facilities. Whereas the cloud kitchen can be setup anywhere as it only requires the cooking space and minimum amount of lighting and another setup. 

  • Hiring Resources

When you are hiring resources for a restaurant, you need to hire different staff for different requirements including the kitchen staff for cooking requirements, F&B staff for service requirements, security staff for location security, cleaning staff for sanitization and cleanliness of the property, gardener if your location includes a garden for children play area, a fulltime electrician and plumber in case of any emergencies, utility staff for cleaning the kitchen and utensils, etc. 

But when you are running a cloud kitchen online ordering system then you need to hire so many resources. All you need to hire is kitchen staff as well as cleaning staff for the cleanliness of kitchen and vessels. Hence, you are saving a lot of amount on staff salary and advances. 

  • Staff Expenditure 

Coming to the next point, staff expenditure. The more the staff, the more the expenditure, in a dine-in concept the staff is enormous in size and hence, the expenditure is high. Staff expenditure involves the living space for staff, loans and advances, salary, and bonus, etc. In the cloud kitchen concept, you are running the entire online ordering system with the help of few staff members. Hence, the expenditure of managing fewer staff is also fewer.

  • Income 

When we analysis the above mentioned four points, we can easily observe that cloud kitchen requires less expenditure, less investment, and less human resources. Therefore, the profit is also high as the owner can save a lot of amount by saving other expenditures. A cloud-kitchen owner’s profit margin is quite high than a dine-in restaurant owner. 

Summing Up

DeOnDe provides 100% complete online ordering system suite for those who are willing to start an on-demand delivery startup in India or anywhere across the world. Be it food delivery solutions or grocery delivery solutions- we have readymade online food ordering solutions to start your delivery business with ease.


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Author Details

Bhavesh Parmar is the Digital Marketing Manager at DeOnDe who helps businesses in generating leads. His marketing skills and coordination abilities keep him ahead of the curve. He is passionate about photography and content marketing.