UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Trends

• Adoption of Smart Kitchen Technologies: Dark kitchens in the UAE are deploying various smart technologies to optimize their operations and enhance productivity. These include automated inventory management, IoT enabled equipment monitoring, AI powered order management and robotic food preparation. Instead of manual processes, smart kitchens leverage data-driven insights to minimize costs and wastage. Their highly streamlined production line also ensures faster order fulfilment.
• Focus on Operational Efficiency: Dark kitchen companies are focused on streamlining their operations and supply chain to achieve prompt delivery with minimal errors. Their use of centralized facilities allows them to plan production schedules, inventory and staff allocation more efficiently. Data analysis also provides insights to optimize the menu and meal preparation based on order volumes and patterns. Partnerships with efficient third party logistics providers also enhances the delivery performance.
• Partnerships with Food Aggregators: Integration with leading online food aggregators like Talabat, Deliveroo, Zomato and Uber Eats is a key trend enabling the rapid growth of dark kitchens. These platforms provide a ready customer base and expand the reach of brands. Aggregators also enable optimized routing and delivery management. Dark kitchen companies rely on such partnerships to acquire customers and scale up swiftly. The commissions paid to aggregators makes customer acquisition more cost-effective.
• Sustainability Focus: With growing awareness on sustainability, dark kitchen brands are aiming to reduce their environmental impact through measures such as use of renewable energy, recyclable/reusable packaging, and minimizing food wastage. Their centralized operations also contribute to lower emissions compared to individual restaurant outlets. Some brands use bicycles for last-mile delivery instead of fuels vehicles. Offering vegan, organic and locally sourced food options further helps in appealing to environment-conscious millennials and Gen Z consumers.

Figure 1. UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Share (%), By Ordering Method, 2023