Q36. What is the underlying reason cloud kitchens have enabled more entrepreneurs to enter the food business?

Question

Directions (36-44):

Read the following passage and answer the questions.

[Passage about cloud kitchens: virtual kitchens without dine-in, growing due to cost efficiency, Britain grew threefold in 2023, US target 27 billion by 2027-2032, creates jobs, but compliance issues with food safety regulations.]

Q36. What is the underlying reason cloud kitchens have enabled more entrepreneurs to enter the food business?

1. A. The emergence of global food trends requiring innovative business models
2. B. The increase in food delivery app usage that encourages mass entry
3. C. The substantial decrease in start-up and operational costs associated with running a food business (Correct answer)
4. D. The ability to access a wider consumer base without geographical limitations
5. E. The availability of shared kitchen infrastructure and government subsidies in urban areas

Correct Answer

Option C — The substantial decrease in start-up and operational costs associated with running a food business

Detailed Solution & Explanation

The correct answer is The substantial decrease in start-up and operational costs associated with running a food business.

Key Points

• The passage explicitly states: "By eliminating the expenses of prime-location rentals, heavy decor, and customer service staff… cloud kitchens have made it possible with lower investment and quicker setup."