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Delhi government to consult businesses on cloud kitchen policy


NEW DELHI :

Delhi government on Tuesday will consult cloud kitchen operators and food delivery aggregators as part of the state’s plan to develop a dedicated cloud kitchen policy aimed at creating two million jobs in five years, said an official statement.

The consultation will be held by the Delhi Dialogue Commission, a think tank set up by the Aam Aadmi Party government, and the state’s department of industries. Several cloud kitchen operators and food delivery aggregators have been invited to the consultation to be chaired by DDC vice-chairperson Jasmine Shah, said the statement.

It is the first time any state government has recognised cloud kitchens as significant contributors to the food and beverage industry, the statement said, adding that the state government is deliberating on providing land and other incentives to cloud kitchens, easing licence regulations for such units and setting up of cloud kitchen clusters with plug and play features across different land parcels in Delhi.

The number of cloud kitchens in Delhi is growing at a rate of over 20% every year. There are over 20,000 cloud kitchens currently active in the city, which provide direct employment to around 200,000 people and indirect employment to at least 50,000 people, it said.

The consultation to be held at the Delhi Secretariat is aimed at understanding the challenges faced by Delhi’s cloud kitchen operators and exploring the potential and viability of setting up cloud kitchen clusters across the state.

The proposal to boost cloud kitchens is part of the Arvind Kejriwal government’s recently announced budget plan to create two million jobs in 5 years in Delhi, the statement said.

During Delhi’s budget session for 2022-23, Deputy Chief Minister Manish Sisodia unveiled the state’s plans to frame a cloud kitchen policy for Delhi to help the food and beverages industry in the capital expand.

“It is the first time a state government has recognised cloud kitchens as significant contributors to the food and beverage industry. Cloud kitchens have a huge potential to attract investments, increase the market size of the food and beverages sector and generate large-scale direct and indirect jobs,” the statement said quoting Jasmine Shah, vice-chairperson, DDC.

“…we are committed to further facilitating the growth of this strongly emerging segment by encouraging the setting up of shared commercial kitchen spaces across Delhi,” said Shah.

Cloud kitchens are set to be a $2 billion industry in India by 2024, up from $400 million in 2019, the statement said. As cloud kitchens prepare and deliver food at the customer’s doorstep by taking orders via food aggregators or online ordering platforms, they can operate at a fraction of the traditional restaurant space, the statement said, adding that the segment witnessed a significant boom during the coronavirus pandemic.



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