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Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer?.

Solutions for Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the following information carefully and answer the given question.It may come as a surprise that some online restaurants do not have a traditional physical space where one can dine in. These restaurants, known as cloud kitchens or ghost kitchens, are merely commercial cooking spaces without a dine-in option. These are usually catering hubs for online pick-ups. Cloud kitchens were pegged to be one of the most lucrative business segments in the food-tech industry, as they received more funding than food delivery businesses in 2019. But the COVID pandemic upended several priors. The faith in the cloud kitchen has taken a hit. This begs the question: Do cloud kitchens still have the potential to disrupt the food-tech ecosystem?There are two cloud kitchen models. One, a food-tech partner offers retail kitchen space to chefs and restaurants. The kitchen space is to be shared by six to eight restaurants. The chefs are charged a membership fee covering rent, infrastructure, commercial equipment, and for added services like dishwashing and storing. Each restaurant/chef is responsible for handling their business. The food aggregator partners, in turn, prioritise these brands in their search metrics. This system allows food aggregators to control the supply of food and reduce their dependence on third-party restaurants.The second model is where one restaurant operator sets up a shared kitchen space where multiple cuisines under different brand names are prepared. This restaurant operator takes care of all the operational and promotional aspects of the business. Dubbed as the future of the eating-out industry, cloud kitchens have been sprouting across India. Located in low-rent areas, they maximise a restaurant's ability to service online orders while not causing inconvenience to diners in traditional sit-down restaurants. Typically, the initial investment for a cloud kitchen is around Rs. 10 lakh and could vary depending on the sophistication and area required. With an average order value of Rs. 300 and 750-800 orders/day, a cloud kitchen could break even in the first year.Though the cloud kitchen model looks lucrative on paper, it comes with its problems. While they have lower setup costs, their revenues are lower as well. Customers expect lower prices since there is no ambience to pay for, making it difficult for cloud kitchens to raise their prices easily. Because of the COVID pandemic, many consumers preferred to order online rather than visit a restaurant. Consumers prioritising health and hygiene prefer to order from a restaurant with a well-known brand name, good ratings, and reviews, even if it is slightly more expensive. It appears that physical visibility helps in building trust in the consumers' minds.Based on our conversation with food-tech investment professionals from venture capital firms, we find that they are no longer focused on cloud kitchens. As per the investors, cloud kitchens are challenging to build and scale. Building infrastructure/kitchen relies on capital arbitrage. Moreover, physical capital is not easy to scale. Next, finding the right quality workforce to deliver quality food consistently is not an easy task. Anyone can start a restaurant — that was the promise of a cloud kitchen. The novelty is gone since most restaurants are cloud kitchens today, as people are reluctant to eat out. Experts say that COVID-19 has been a blessing in disguise for the food-tech industry. The cloud kitchen, overall, has not proven to be profitable or easy to scale.Q. Which of the following statements is NOT TRUE in context of the passage?a)It is expected that people who want to dine in get similar attention as that paid to online orders.b)Most of the cloud kitchens are located in low rent areas to reduce overhead expenses.c)Initially, cloud kitchens were expected to generate great profits because of their concept.d)Customers are willing to pay a premium in expectation of greater hygiene from cloud kitchens.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.