Key Strategies for Building a Profitable Cloud Kitchen Business

After the pandemic, most people have adopted or got used to with the habit of ordering food online. Ordering food online was already a choice made by people, but after the lockdown, it increased even further. This particular habit has facilitated the growth of Online restaurants or cloud kitchens even further, thereby aiding business owners to save a lot of costs and still provide the same quality of food. According to surveys, 13% of the restaurant business is occupied by Cloud Kitchen, let us take a deeper glance into this subject.

Cloud kitchen business or also known as Ghost kitchen business is a unique form of a platform where the prepared food is delivered to the doorsteps of the customers by taking orders over calls or with the help of technology and platforms. It does not have a physical store or a dine-in place for customers, it just performs delivery-only orders. 

Cloud Kitchen Business Model

Cloud kitchen concept is altogether different from that of a traditional restaurant, it is also known as virtual kitchen that operates a type of food service that only focuses on food preparation and delivery. Cloud kitchen setup is different having professional-grade kitchen facilities and online ordering platform. Its menu is focused on popular dishes, its staff depends on the order placed in a given period. It operates generally in dense populated areas, they are also famous for eco-friendly packaging and its kitchen space is designed as per workflow. Cloud kitchen business plan focuses on delivering food online and it’s working hard to satisfy the customers online food demand. 

Advantages

Before stepping into any business it is crucial to acknowledge and know about the various perks that it offers. Apart from the normal restaurant business, Cloud Kitchen has no physical store and hence the outlet or the space necessary for making food does not have to be fancy or huge to impress the customers, thereby saving you a lot of money. The various advantages of Starting a Cloud Kitchen business are as follows. 

Read More : How To Start Food Catering Services ?

Cloud Kitchen Setup Cost

As we already know about the difference between a normal restaurant business and a Cloud Kitchen Business. You don’t require an offline or a physical store for your business, even a home-based outlet would do the work. This saves you a lot of money, as a major investment is required for the interior designing and the kitchen, yet in cloud kitchen, you can focus those funds on developing your brand. The cloud kitchen startup cost in India is very low than that of other restaurants in India, so anyone can start this type of business.

Huge Returns 

As your investment is low, this also cuts down your production cost. The only expenses that your business would ever incur are the material usage, that is the ingredients required to make the food and a small percentage of royalty. Apart from that, you do not require any additional cost, thus your returns are quite high from every customer you make, thereby granting you a good profit. 

A Small Team

It is going to be just You and a very small team of chefs who would aid you in preparing the food. You do not require waiters, cleaners, or managers, just you and 1 or 2 Chefs. This cuts down your expenses further, as you have to pay salary to just 2 or 3 of them. However, as your business grows further, or as new items keep adding to your menu, you would require more manpower. Yet for beginners, you can start with just a small team. 

Read More : How To Start Moti Mahal Delux Restaurant Franchise In India ?

Cloud Kitchen Requirements

One needs to focus on cloud kitchen requirements like location, licence and other business permits, online delivery platform, kitchen infrastructure and equipment, development of the menu, number of employees, marketing and promotion, robust technology , packaging system, reliable delivery partners and more.  

Steps to Start

The perks of starting a Cloud Kitchen Business are surely too many to ignore, thereby giving you more confidence. Now, let us jump straight to the point of understanding all the necessary steps required to start a Cloud Kitchen Business in India.  
 
Deciding your Cuisine or Food Items :A Cloud Kitchen business would rather be known for a particular type of food specialty of a Cuisine. This would help to differentiate you and your brand from the other Cloud Kitchen. You need to decide which Cuisine or Food item you are moving forward with, or which type of Franchise you are moving ahead with. 
 
Research and Analysis :This step is mandatory for any type of business. As a cloud Kitchen Business, this would be very important for the future of your business. You need to research well enough about your niche, the cuisine or food item that you are going ahead with, the market, your competition, etc. 
 
Acquiring Licenses :In India, you cannot start your business unless you have acquired all the necessary licenses and permits that are mandatory for your business. If we talk about Cloud Kitchen Business, you would require various licenses such as FSSAI License, GST Registration, Municipal Health Trade License, Fire License, etc. To avoid any legal trouble, it would be recommended to acquire all of these licenses before starting your business. 
 
 Arranging your Kitchen Space and Equipment :Carrying out your Kitchen from home sounds like a perfect plan, however, you also need to stock all the equipment that you would require daily in your kitchen. Some individuals neglect this step, thinking that they would already have all the stocks, but it is significant to have the right choices of equipment. You can either research and buy them or consult an experienced person for the same. Once you have arranged for the same, you are almost ready. 
 
Finalizing your Team :As a beginner, you would not necessarily require any type of additional manpower for your business. According to various recommendations, all you would need is 1 or 2 chefs, an accountant, and a digital marketer who would take care of your marketing. No additional staff is required unless your business sees good growth and expansion opportunities.  
 
Marketing  :What better way to enter a market than with heavy and target-specific promotions of your business? You will have to create an online presence of your business, be visible on all the social media platforms, and promote your business accordingly with the help of the digital marketer. For beginners, you can promote by offering attractive discounts for the early customers.  
 
Launch Time! :These are all the steps that belonged to the pre-launch, once you have ensured each of them, you can finally launch your business and start fulfilling all the orders you receive.

is cloud kitchen profitable

Yes cloud kitchen is profitable. One can easily generate a profit margin of  20% to 25% from cloud kitchens, the profit scale can go even higher than this as per the orders delivered during a day. The cloud kitchen can make more profit than that of other types of restaurants offering food service

Conclusion 

Cloud Kitchen business is an online restaurant business that takes the order on an online basis and delivery them accordingly. The steps necessary to start a Cloud Kitchen Business are deciding your Cuisine, Research, acquiring licenses, arranging Kitchen space and equipment, finalizing your team, marketing, and finally launching your business.

FAQ’s

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