Delhi Govt To Come Out With Cloud Kitchen Policy To Streamline Licensing Procedure

The Arvind Kejriwal-led Delhi government is planning to come out with a cloud kitchen policy to streamline the licensing procedure by implementing a user-friendly, single-window system through a digital platform.

The government aims to support independent food outlets and generate job opportunities with this initiative. It is also looking at transforming Chandni Chowk and Majnu Ka Tila into Delhi’s ‘Food Hubs’ under this plan, the Chief Minister’s Office said in a series of tweets.

A cloud kitchen is a type of delivery-only restaurant that doesn’t have a physical space, a dining area, or a takeout counter.

Moreover, this policy will lessen the compliance burden of existing operators and entrepreneurs in the cloud kitchen segment as they currently need to obtain licences from various departments like the MCD, police, fire department and the DDA. Under the new policy, they can apply for a licence from the portal and track the status of their application.

The new policy is an effort to regularise cloud kitchens as many of them are currently operating without a proper licence.

There are around 20,000 cloud kitchens and independent food outlets operating in different parts of Delhi and around 4 lakh people are working with or associated with these establishments in some way, as per the estimates of the Delhi government.

The independent kitchen food outlet scheme will comprise cloud kitchens, ghost kitchens, base kitchens, dark kitchens, among others. In a statement, the Delhi government said that only those outlets which deliver meals to people will be considered independent under this scheme.

The growth of food delivery platforms such as Zomato and Swiggy over the last few years has led to a rise in cloud kitchens in the country. The sector has also produced a unicorn in Rebel Foods.

The domestic cloud kitchens market was estimated to be worth $400 Mn in 2019 and projected to grow to $2 Bn by the end of 2024, as per a report.