Dark Kitchens and Sustainability: What’s the Story?
‘Dark’ or ‘cloud’ kitchens are a thriving market within the UK hospitality industry. Offering businesses a lost cost means of tapping into the UK’s food delivery boom whilst foregoing the need for a front of house, it is perhaps unsurprising that dark kitchens have proven so popular.
But what exactly goes into making this business model work so effectively? Who can benefit the most? And what are the environmental pros and cons of this new culinary money-maker? How can dark kitchens be run as sustainably as possible?
In this article, we aim to answer all of these questions, evaluating the sustainability strengths and weaknesses of ‘dark’ kitchens, alongside offering our advice on how to run of these ventures as sustainably as possible.
Dark Kitchens on the Rise
Dark kitchens have been significantly rising in popularity for quite some time. As one blog article explains, the launch of food delivery giants, Deliveroo’s, ‘Editions’ venture in 2017 served as a “catalyst” for similar initiatives. Since then, dark kitchens such as “Karma Kitchen, Taster and Cloud Kitchens” have emerged, with “other brands such as The Athenian and Qoot” opening “to serve a larger radius than available from their traditional restaurants.”
Of course, COVID-19 has been largely responsible for the increased demand for delivery, not just of prepared meals but groceries and other goods. As one Magnet.co.uk article explains, “Dark kitchens have grown markedly in number since 2020” and “since the pandemic, in London alone, restaurants are selling an extra 900,000 meals a week via popular apps like Deliveroo and Uber Eats.”
However, it is perhaps more accurate to view the pandemic as yet another “catalyst” in the growth of this market, rather than a singular cause. Afterall, food delivery was growing in popularity even throughout 2018 and 2019 with several new apps emerging within the market. As such, some have argued that dark kitchens demonstrate a “resilience” of the hospitality industry in “adapting to changing consumer behaviours [that] has been evident for some time.”
Whether or not COVID-19 is considered the key factor in accelerating this market, one thing remains clear: we are witnessing a cultural shift that will continue to take effect long after the pandemic. Revenue growth demonstrates that as the “population adapts to the ‘new normal’”, we have retained “the habit of ordering in.” In fact, “market research firm Euromonitor, recently estimated that they could be a $1trn business by 2030” and forecasts predict a linear growth in ‘dark’ kitchen revenue between now and 2025 (see graph below).
Why Are ‘Dark’ Kitchens So Popular? How Do Businesses Benefit?
Karma Kitchens co-found Eccie Newton has been quoted saying “costs for operators in these facilities can be 30% less than traditional premises” if starting a dark kitchen from scratch. In the same interview, Newton adds that ‘dark’ kitchens provide businesses with “a lot more space to experiment. If one brand isn’t hitting well with customers, you can always start over and try something new without needing to re-outfit an entire restaurant.”
Another source expounds this benefit, adding that ‘dark’ kitchens “help expand their delivery service and reach more customers at a minimal cost and without compromising the quality of their on-premise food service.” In this way, businesses can develop virtual brands that “appeal to a wider audience.”
This article goes on to emphasis how “many businesses have actually been “saved from financial ruin during the coronavirus pandemic. One example is Boundary London, who “as a boutique hotel, had to quickly adopt a dark kitchen model in order to stay operational and financially viable.” Food consultant Peter Backman summarises this best, stating that for many restaurants, ‘dark’ kitchens are “the answer to a prayer”.
However, ‘Dark’ kitchens are popular not only because they eschew bricks and mortar and allow hospitality brands to be more adaptable. As a Restaurant Times article outlines, automated and online processes also make it easier for “‘dark’ kitchens to collect real-time data related to order preferences, popular items and order frequency, and adapt their business model accordingly.” All of this data provides benefits in assisting “inventory management, centralized order tracking, multi-brand ordering and menu integration.” As such, ‘dark kitchens’ can provide caterers with the means to order, cook, staff and market more efficiently.
How Sustainable Are ‘Dark’ Kitchens and How Can They Be Made More Sustainable?
You may now be convinced about the benefits ‘dark’ kitchens offer for businesses and customers alike, but what about sustainability? Is this business model planet-friendly or problematic?
Sustainability Benefits
Here are some of the sustainability benefits offered by ‘dark’ kitchens against traditional hospitality establishments.
Businesses can share heat, electricity, water and building materials in one space.
Less materials and energy are also required without a front of house area.
Ingredient orders can be combined if multiple businesses within the same kitchen use the same supplier.
Customer orders can often be grouped for delivery by one rider or driver.
Packaging can be recyclable or used as tupperware.
Data systems can help to reduce the amount of food waste by anticipating how much food will be ordered. Some businesses specialize in providing this benefit. For example, Carl Tengberg from Swedish company Curb “creates brands for the different cuisines that use them and sees this as a decisive advantage.” Tengberg says: “With more efficient and smart kitchens, we have an edge in eliminating food waste. Our aim is simple: zero food waste.”
Reduced hot water required for washing glasses, crockery and cutlery.
Often, delivery drivers use zero carbon transport such as bicycles and electric mopeds
Sustainability Issues
Oppositely, here are some of the sustainability setbacks associated with dark kitchens.
Disposable packaging: making this reusable and/or compostable is the responsibility of product designers at individual businesses, as well as the customers' willingness to reuse/recycle at home.
Travel emissions associated with delivery vehicles such as mopeds and cars.
Construction emissions required to build new developments.
Other factors, such as location, determine how sustainable dark kitchen businesses are. In one article examining the environmental implications of the food delivery boom, Eleonora Morganti, a researcher on food consumption and distribution, explains that “larger dark kitchens, which amalgamate many brands, tend to be on the edges of cities, where property is cheaper. That means delivery journeys are longer than for city-centre restaurants, which increases emissions.”
However, Morganti explains, “the more kitchens that share a location, the greater the chances of a rider consolidating several orders to the same area” thus reducing the food miles associated with each order.
Dark kitchen businesses can also play part in encouraging low or zero carbon delivery solutions. Morganti gives the example of Deliveroo allowing only bicycles and electric scooters to pick up from some sites as well as providing electric vehicle chargers at some locations.
Ultimately, the environmental impacts of ‘dark’ kitchens depend heavily upon the circumstances and standards of each kitchen as well as their tenant businesses. Making ‘dark’ kitchens more eco-friendly requires a conscious and coordinated effort, combining “both the supply chains of brands that share the same kitchen, and the delivery of meals to customers in the same area.”
Fortunately, there are some extremely simple measures that ‘dark’ kitchen businesses can take to reduce their emissions, one of which GridDuck is offering free of charge. To remind businesses to save as much as possible and uphold good sustainability standards, download our Reduce Kitchen Waste poster for free.