Uber is testing renting out commercial kitchens to businesses who sell food on delivery apps. These Cloud Kitchens were created specifically for on-demand food preparation. Not having a “dine-in” area eliminates a lot of overhead cost that traditional restaurants incur such as cleaning, decor, more staff, etc.
Cloud Kitchens function a lot like assembly lines and distribute their food through Uber Eats. “Uber Eats is our food delivery platform that makes getting great food from your favorite local restaurants as easy as requesting a ride. The Uber Eats app connects you with a broad range of local restaurants and food, so you can order from the full menus of your local favorites whenever you want,” stated Uber. Allowing for delivery-only locations, Cloud Kitchens is building infrastructure and software that provides entrepreneurs the opportunity to invest with little capital and time. Completely changing the food industry by removing non-food labor costs, this model allows chefs to use numerous Cloud Kitchens and work from many locations!
Not only great for chefs, this concept benefits consumers by offering the world’s best, freshest foods available at the click of a button. So what does this mean for traditional restaurants? Uber is doing away with “power of a particular restaurant brand” and enabling “the best food to win out.” No matter how strong a brand may be, it might have a fight on its hand again Uber Eats.
Using social media to increase awareness, Uber Eats has featured local restaurants in their service areas. One Instagram post stated: “When we came back, all the businesses were shut down…I took this as an opportunity. Kim Nguyen and her husband Luu, returned to New Orleans after the devastation of Hurricane Katrina to rebuild and open @magasincafe. The restaurant serves mouthwatering Vietnamese dishes that have been passed down from Kim’s grandmother. Opening their doors during #MardiGras, the initial crowds surprised the couple but six years later, the customers keep lining up. Today, they own and operate two restaurants in New Orleans — Magasin Cafe and Magasin Kitchen.”
It looks like this strategy is working since the post above earned 174,332 views.