The dark kitchen market - France

The global market for dark kitchens, also known as ghost kitchens, is rapidly expanding, with significant growth facilitated by the COVID-19 pandemic as traditional dining experiences were restricted. In 2020, the French dark kitchens experienced a 50% increase in presence on the Uber Eats app, contributing to a domestic market size estimated at 294 million euros. Globally, the market is predicted to reach a staggering $71.4 billion by 2027, nearly doubling its value in eight years.

The demand is largely driven by young urban consumers under 35, who prefer the convenience of home delivery and exhibit a growing interest in health and environmental considerations. Dark kitchens benefit from lower rental costs and streamlined operations, with a focus on limited menus and potential automation, which attracts significant investments. For instance, in 2021 alone, French companies Taster and Not so Dark raised €47 million and €20 million, respectively.

The market's structure is also witnessing a shift as companies like Taster and Not so Dark turn to franchising models. Regulatory challenges are emerging, especially in terms of labor rights for delivery personnel and environmental concerns over disposable packaging, leading to legal transformations and the development of ethical platforms. Despite the substantial growth and profitability, the market operates within a competitive landscape with an increasing ubiquity of virtual restaurant brands.

Trends in the Dark Kitchens Market:

A Closer Look at Demand Dynamics In recent years, the French dark kitchens market has become an increasingly prominent segment in the food delivery landscape. With the boost provided by the Covid-19 crisis, dark kitchens have catered to the needs of a nation under lockdown, leading to a notable market expansion. The boom in home delivery has translated into a market that, according to analysis, generated between 285 and 305 million euros in 2020.

Driving this market are young, urban consumers, who constitute a significant portion of the demographic. These individuals, particularly aged under 35, have shown a strong inclination towards online meal ordering, establishing a foundational customer base for dark kitchens. Catering to this demand, cities with populations over 200,000 are the prime locations for these services to thrive, aligning with the urban-centric adoption patterns of food delivery platforms. When examining spending habits, the French are mostly spending under 30 euros per delivery, with a large number of orders falling in the range of 10 to 30 euros.

Frequency of orders varies, but there's a clear skew towards occasional ordering, implying a market that thrives not on daily transactions, but rather on less frequent, perhaps more indulgent, purchasing behavior. Keeping in mind the above averages, it is suggested that notably in Paris, there's a higher consumption frequency that surpasses the national average by about 1.5 times. Evidently, the demand for dark kitchens aligns with a broader trend: the consumer inclination towards convenience without compromising on quality. High-quality and authentic cuisine types like Japanese, burgers, and pizza dominate the market, reflecting the French palate's predilection towards these dishes.

Consumers are influenced by a mix of factors, with the top motives for using delivery platforms being the desire to indulge and enjoy a measure of convenience that aligns with their lifestyle. Even amid stringent conditions like lockdowns, these motives have remained largely consistent, suggesting that demand for dark kitchen services will persist after the pandemic. Considering the strong demand drivers and the trends observed, the dark kitchen market is poised to continue its growth trajectory.

The sector's success hinges on an understanding of consumer trends, such as a focus on indulgence and ease, which dark kitchens seem well-positioned to cater to. With continued investment and the increasing popularity of delivery services, dark kitchens may become an even more integral part of France's culinary landscape in the years to come.

The Vanguard of Ghost Kitchens: Trailblazing Companies

Shaping the Future of Food Delivery In the swiftly evolving realm of dark kitchens, where convenience meets culinary diversity, certain companies have established themselves as market shapers, innovating and adapting to meet the insatiable demands of the digital diner. These trailblazing entities are not only at the forefront of food delivery but also redefining the landscape of the restaurant industry.

• Taster stands out with a creative approach, offering culinary diversity through several virtual restaurant brands. From the Japanese-inspired 'Stacksando' with its katsu sandwiches to the authentic Vietnamese 'Mission Saigon', Taster has seized the opportunity to cater to a wide range of tastes while maintaining a centralized operation. Vegan options through 'A Burgers' and Korean fried chicken from 'Out Fry' ensure that they have offerings for every palate. With a significant funding infusion, Taster is swiftly expanding its footprint and looking beyond its current markets to conquer new territories.
• Not So Dark is yet another heavyweight, embracing a model similar to Taster. With 'Como Kitchen' providing Mediterranean fare, '6am Fried Chicken' satisfying fried food cravings, and 'Coquillettes Oui Maman', which offers a French twist on coquillettes, they are rapidly gaining traction. Growth plans for Not So Dark are aggressive, indicating a powerful determination to spread these distinct food concepts across other productive markets.
• Devor, the third giant in this market, caters to a variety of flavor preferences through brands like 'Saint burger' for gourmet burgers and 'Holy Chick' for fried chicken aficionados. With a nod to international cuisine, 'Fat poutine' brings the Quebec favorite to the French market, while 'Mama tacos' delivers on the French tacos trend. They've even partnered with a clothing brand, Tealer, to create 'Tealer Munchies' with an inventive touch of CBD-infused dishes.

All of these companies are characterized by their commitment to convenience without compromising quality. By partnering with local traditional restaurants as franchisees, these companies offer turnkey solutions that favor scalability and reduce overhead costs while amplifying the reach of their distinct culinary offerings. The agility of these frontrunners to adapt to market trends, coupled with substantial investment backing, positions them at the heart of the ghost kitchen revolution—a movement poised to shape how the world thinks about dining in the digital age.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 06/03/2024

Summary and extracts

List of charts

• Size of the global dark kitchens market
• Size of the home delivery market
• France's preferred delivery location
• Breakdown of home meal delivery customers by age
• Breakdown of home meal delivery customers by place of residence
• Breakdown of home meal delivery customers by gender
• Penetration rate of different dishes among consumers of home-delivered meals
• Frequency of home-delivered meal purchases
• Average amounts spent on home-delivered meals by type of income
• Type of meal by night of the week
• Meal locations
• Average monthly cost of home-delivered meals by age
• Growth in use of home-delivered meals since inflation
• Support for various statements on working conditions for home delivery drivers
• Willingness to pay more for home delivery for various reasons
• French support for aligning the status of home delivery drivers with that of salaried employees
• France's favourite home meal delivery companies
• Breakdown of costs for a coffee costing £2.5 at Starbucks
• Distribution of dark kitchens by type
• Geographical distribution of dark kitchens