The Impact of Cloud Kitchens on Customer Satisfaction: A Comparative Study with Traditional Restaurants in Sri Lanka

Abstract

The food and beverage industry is undergoing a transformative shift, driven by technological advancements and evolving consumer preferences. One of the most significant developments in this sector is the rise of cloud kitchen delivery-only food service models that operate without physical dining spaces. These virtual kitchens prioritize operational efficiency, affordability, and digital adaptability, providing a modern alternative to traditional dine-in restaurants. This study examines the impact of the absence of physical dining spaces in standalone cloud kitchens on customer satisfaction, compared to traditional restaurants in Sri Lanka. Using a quantitative research approach, data were collected through structured questionnaires from 386 respondents who had prior experience with cloud kitchens. The study analyzed key factors influencing customer satisfaction, including price advantage, accessibility and convenience, and digital adaptability. Descriptive and inferential statistical methods, including regression analysis, were used to evaluate these relationships. Findings indicate that price advantage plays a pivotal role in customer satisfaction, primarily due to lower overhead costs. Accessibility and convenience, facilitated by user-friendly digital platforms, emerged as significant contributors to positive consumer experiences. Additionally, digital adaptability, such as seamless online ordering and payment systems, further enhanced customer satisfaction. The results suggest that cloud kitchens outperform traditional restaurants in meeting modern consumers’ expectations for affordability and convenience. The regression model explained 66.6% of the variance in customer satisfaction, reinforcing the competitive advantages of cloud kitchens. However, the study’s geographic focus on urban Sri Lanka and the exclusion of factors such as food quality and third-party delivery services present opportunities for future research. From a theoretical perspective, this study extends the understanding of digital-first business models and their impact on consumer behavior. From a practical standpoint, the findings offer valuable insights for restaurateurs and policymakers to optimize cloud kitchen operations, integrate digital technologies, and develop regulatory frameworks that support sustainable growth in this sector. As cloud kitchens continue to disrupt traditional dining paradigms, these insights provide a foundation for innovation, adaptation, and long-term industry transformation.