Pros
Ready to go kitchen space (hoods, sink, power, gas).
Cons
Very expensive, high rate of failure with little to no support from cloud kitchens. Not a partnership - you are a tenant to them, that’s all. They are not invested in you being successful at all. They are bullies, and treat operators like they are employees. Any problems on their side, they take no accountability for. They make up rules and issue fines for frivolous things, (one empty box on the ground, that wasn’t even ours) which they don’t have authorization to do anyways because it’s not on our contract. If you get a package delivered they won’t even let you know it’s there. Incorrect billing constantly and they will turn off your service if there is any issues. Drivers steal orders from lockers. Terrible communication, terrible onboarding and terrible support. No contact numbers to contact management team, no responses on nights and weekends (like if heaters break and it’s 20 degrees in the building) or if AC breaks and it’s 100 in the kitchen. No compensation for problems with their tech that cause lost sales for us). Just do a quick Chat GPT or Grok search about cloud kitchens restaurant success and it will give you accurate info. Here is a snippet from grok (and it’s true based on my own experience. Grok Findings. 85% of restaurants in CloudKitchens facilities leave within their first year, • Common reasons for leaving include misleading sales practices, inadequate support, and poor facility conditions, Overview Based on general data from multiple CloudKitchens locations, approximately 85% of restaurants leave within their reasonable to assume a similar turnover rate there, given the lack of evidence suggesting otherwise. Success can vary, with some restaurants thriving due to unique products and market fit, while others face challenges like high costs and operational issues. Reasons for Turnover The high turnover rate is often linked to misleading sales promises, inadequate maintenance, and financial pressures, which could impact restaurants. For example, operators have reported feeling misled about support levels, and some face difficulties recovering deposits, adding to the risk.