Dark kitchens, also known as ghost kitchens or cloud kitchens, refer to professional kitchen spaces that are dedicated to the preparation of food for delivery/takeaway and have no or only a small serving area for walk-in customers. They provide a cheaper alternative to standard restaurants by removing the dining area and instead focusing only on delivery and takeaway orders received through mobile apps and websites. Dark kitchens are an asset-light model that allows cloud kitchen operators and food brands to expand their delivery zones quickly by leveraging underutilized commercial kitchen spaces across various locations.
The UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens market size was valued at US$ 330.3 million in 2023 and is expected to reach US$ 821.5 million by 2030, grow at a compound annual growth rate (CAGR) of 13.9% from 2023 to 2030.
Key Takeaways
Key players operating in the UAE Dark Kitchens Market are Kitopi, Food Xtreme, Foodlinks, and Vezeetaa.
The UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Demand for online food delivery services has boosted the need for dark kitchen spaces in the UAE. As more people prefer ordering-in and demand convenience through their mobile devices, the reliance on delivery-only kitchen models is increasing.
Technological advancements in online food ordering platforms, mobile wallet payments, and delivery fleet management systems have enabled fast-scaling of cloud kitchen businesses. Advanced data analytics help optimize kitchen operations, reduce costs, and enhance customer experience.
Market Trends
The rapid expansion of food delivery aggregators and apps in tier 1 and tier 2 cities of the UAE is driving the proliferation of dark kitchens. Operators are able to access new pockets of demand.
Many restaurateurs are adopting the hybrid model of running both dine-in outlets as well as dark kitchens to leverage their brand and control delivery operations. This is a popular strategy.
Market Opportunities
The rising popularity of quick-commerce players and 15-minute delivery promises is opening new opportunities for micro-fulfillment dark kitchens near residential areas.
Emerging demand for specialized cuisines, health meals, and international flavors in the UAE presents scope for niche dark kitchen concepts to scale through delivery channels.
Impact of COVID-19 on UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market Growth:
The Covid-19 pandemic has significantly impacted the UAE dark kitchens, ghost kitchens, cloud kitchens market. During the pre-Covid era, this market was growing steadily with the expansion of online food delivery platforms and increasing preference for convenience food among consumers. However, during the lockdowns imposed to curb the virus spread, the demand witnessed a sharp rise. As people were forced to stay indoors and dining out was prohibited, they increasingly relied on online food deliveries to fulfill their food cravings. This led to a massive surge in orders for the dark kitchen brands, helping them scale up their operations rapidly.
Though the restrictions have now been lifted, consumer preference for contactless food delivery continues. Even as dining out resumes, many consumers still opt for home delivery due to safety concerns. Furthermore, working from home culture adopted by several companies has made online food orders a regular phenomenon. To cater to this sustained demand, dark kitchen brands need to focus on expanding their portfolio by adding new cuisine options, strengthening delivery fleet and logistics, enabling seamless order tracking and delivery, implementing strict safety and hygiene protocols, and leveraging technology for operational efficiency. Collaborations with major food delivery platforms also become important to gain increased visibility and orders.
Concentration of UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market Value:
The UAE dark kitchens, ghost kitchens, cloud kitchens market value is highly concentrated in major cities like Dubai and Abu Dhabi due to density of population and higher disposable incomes. According to recent reports, around 65% of the total market value comes from these two cities alone. Both Dubai and Abu Dhabi host large immigrant population who frequently order in and rely on online food delivery services for meals. Also, the urban culture of fast-paced life with long working hours drives the popularity of convenience food options prepared by dark kitchen brands. Moreover, lucrative investment opportunities, business friendly policies of the governments and widespread availability of delivery fleet partners attract many international dark kitchen operators to set up units in these cities. The market concentration in Dubai and Abu Dhabi is thus expected to continue leading the overall growth of UAE's dark kitchen industry.
Fastest Growing Region for UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market:
With rising awareness and adoption, the northern emirates in UAE have been witnessing rapid growth in the dark kitchens market over the past couple of years. With over 1.6 million residents, Sharjah has emerged as the fastest growing region generating highest year-on-year growth. In recent times, many international and local dark kitchen operators have launched new facilities in Sharjah owing to lower rental rates compared to Dubai and Abu Dhabi, availability of skilled workforce and rapidly expanding customer base driven by inflation in other emirates. The dark kitchen space in Sharjah also benefits from proximity to Dubai which allows brands to leverage existing logistics and delivery networks to cover both markets. With continued investments and innovation, Sharjah is expected to outpace others in terms of growth of UAE's thriving dark kitchen industry.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163 )