The Arvind Kejriwal-led Delhi government is set to introduce a cloud kitchen policy aimed at simplifying the licensing process through the implementation of a user-friendly, single-window system on a digital platform.
This initiative aims to support independent food outlets and create job opportunities. The Chief Minister’s Office stated in a series of tweets that the government plans to transform Chandni Chowk and Majnu Ka Tila into Delhi’s “Food Hubs” as part of this plan.
A cloud kitchen refers to a delivery-only restaurant that operates without a physical space, dining area, or takeout counter.
The new policy aims to reduce the compliance burden on existing operators and entrepreneurs in the cloud kitchen segment, as they currently need to obtain licenses from various departments such as the MCD, police, fire department, and the DDA. With the proposed policy, they will be able to apply for a license through the portal and track the progress of their application.
The policy is also an effort to regularize cloud kitchens, as many of them are currently operating without proper licenses.
According to estimates from the Delhi government, there are approximately 20,000 cloud kitchens and independent food outlets operating in different parts of Delhi, employing around 400,000 people in some capacity.
The independent kitchen food outlet scheme will encompass various types of setups, including cloud kitchens, ghost kitchens, base kitchens, and dark kitchens. The Delhi government clarified that only outlets that deliver meals to people will be considered independent under this scheme.
The rise of food delivery platforms such as Zomato and Swiggy in recent years has contributed to the growth of cloud kitchens in the country. The sector has even produced a unicorn in the form of Rebel Foods.
A report suggests that the domestic cloud kitchens market was valued at $400 million in 2019 and is projected to reach $2 billion by the end of 2024.
