Hyderabad: Covid-19 Pandemic casts shadow on cloud kitchens

Hyderabad: The Covid-19 pandemic has cast its shadow on all the sectors, especially the businesses of hotels and restaurants. Even as the government announced relaxations in lockdown, the thin footfall of dine-in customers forced the hotels to adopt new measures like takeaway counters, online orders and home delivery services to sustain in the business. However, this has resulted in driving the 'cloud kitchen,' delivery-only food providers, to the brink of closure.

Cloud kitchen is an innovative online concept where food is prepared and delivered through Swiggy and Zomato. They do not provide dine-in and takeaway services.

With many local restaurants opting for online system for booking orders and delivering, the theme-based cloud kitchens are forced to shut down.

Speaking to The Hans India, G Ashok Reddy, president of Telangana State Hotels Association, said, "The restaurants which used to be a profitable business are now seeing huge losses. Out of the 20,000 hotels, mess and restaurants in the city, almost 20 per cent of them have begun providing online food ordering and delivering services. There are around 14 cloud kitchens in the city and due to huge competition, most of them are forced to shut their business."

"As most of these kitchens are in the west zone of the city, they find it difficult to deliver food to every corner of the city. With locals having option to order from the nearby restaurants, the demand of the cloud kitchens have decreased considerably. Also, the concept of cloud kitchen was in a developing stage so there is not much awareness among citizens," adds Ashok.

Mohammed, owner of Zinger Hut in Secunderabad, said, "In the unlock 1.0, people preferred ordering food online or takeaway to dining at the restaurant. A majority of business came through food delivery apps like Swiggy and Zomato."

R Srinivasan, owner and chef of Ustad Kitchen in Madhapur, said, "I started cloud kitchen restaurant in 2018. Before the pandemic, on an average we used to receive more than 15 orders. Now, post lockdown, we barely received 3 to 5 orders. As a result, I am forced to close this business."

Ch Sameera, a techie and a resident of Temple Alwal, said, "Many are not aware that cloud kitchen food services are available in the city. Though they are tied up with Swiggy and Zomato, they have long distance delivery constraints."