Benefits of a cloud kitchen And since you don't offer in-person dining, you don't spend on tables, cutlery, or even a front of house staff. Without these costs, your startup budget plunges. Less upfront investment makes it easier to take risks, experiment with your offerings, and refine your menus with less pressure.

What is a cloud kitchen? A cloud kitchen utilizes a commercial kitchen for the purpose of preparing food for delivery or takeout only, with no dine-in customers. Cloud kitchens enable restauranteurs to expand an existing restaurant or start a virtual brand at minimal cost.

Once you start, you will break even on your initial investment as soon as six months, whereas a brick-and-mortar restaurant takes several years to accomplish the same goal. Cloud kitchens are certainly profitable and require minimum investment.

Complaints of deceptive business practices, unsanitary conditions, technical issues, and lack of support have surfaced. Insider's analysis also revealed a higher-than-average closure rate of restaurants operating within CloudKitchen locations.