Delhi government’s cloud kitchen policy awaits approval

NEW DELHI: The Cloud Kitchen policy, to be rolled out soon by the Delhi government, has been sent to the Department of Industries and is currently waiting for approval of the policy. The policy is expected to increase employability in Delhi.
“We have formulated the policy and sent it to the Department of Industries. Now, we are waiting for their approval,” a DDC (Dialogue and Development Commission of Delhi) officer told The Sunday Guardian. When this correspondent contacted the Department of Industries, she was told that with respect to the Cloud Kitchen policy, the officers are waiting for clarification from some departments. “Currently, we can’t comment on when the policy is going to be launched; we are waiting for some clarification from some departments,” an officer from the Department of Industries told this paper.
Under Rozgar Budget 2022-23, the Delhi Government has plans to create 20 lakh jobs in Delhi in 5 years. On 26 April 2022, representatives from more than 15 cloud kitchens and food delivery aggregators operating in Delhi attended a meeting organised by DDC Delhi and the Department of Industries to discuss some of the pressing problems and how the Delhi government can support the development of the sector in the city. The clusters of cloud kitchens in the industrial areas of Delhi would be beneficial for operators, aggregators, and customers.
With access to industrial tariffs, such clusters will help in the expansion of segments within the industrial regions. They may also be free from conversion charges since the establishment of such clusters wouldn’t need a change in land use. The policy aims to acknowledge the cloud kitchen industry and to promote its growth in terms of prospects and capabilities. To enable such businesses to run without any difficulties, it is intended that the licence and compliance procedures for cloud kitchens will be streamlined and simplified.
With no dine-in customers, a cloud kitchen prepares food for delivery or takeout only. With the help of cloud kitchens, restaurateurs can easily grow an already-existing business or launch a virtual brand. Many cloud kitchen start-ups are facing challenges.
Speaking about the current challenges, Manjari Singh, co-founder of The Chhaunk, a cloud kitchen start-up, told this paper, “Some of the daily routine challenges are that it is a low margin business because of the aggregator’s high commission and high technological costs in comparison to return; there is no direct communication with customers for feedback and reviews and providing the right solution for any issue; also, many unorganised brands serving unhygienic food in bad working conditions make it difficult for other organized players to match pricing. Also, there is no separate policy for cloud kitchens, cooks/staff keep changing their job and as a result, it becomes difficult to maintain the same taste; also customers keep changing because of massive numbers of available brands, so advertising spent is way high.”