Cloud Kitchen Business with us 

why opening a cloud kitchen is a good Idea?

Here’s what happens exactly in a cloud kitchen model:

Orders come in, meals are cooked, packed and then whisked immediately to their delivery locations by the assigned fleet.

Why does this work? Because you’re cutting costs on front-of-house activities and concentrating on your food. With the availability of third-party services and the growing comfort of mobile ordering, this model seems just right to experiment with. There are more benefits involved like:

Lower real estate costs

Since you’re removing table servicing out of the equation and offering a delivery-only service, you’ll save a huge amount on real estate costs.

Cloud kitchens release you from the obligation of having space in a high-visibility area. Rather than paying for accessibility, better-developed complexes, or even a large parking space, you can concentrate on having enough kitchen space in a decent area near to your target market.

Better expansion opportunities

The best thing about cloud kitchens is that you don’t need heavy investments to begin. You can start small but expand fast. Once you build a brand and get loyal customers, expanding to new localities and even new menu variety gets easier. Let’s take the example of Faasos, today it runs 160+ kitchens and 4 brands including Faasos, Behrouz Biryani, Oven Story and Firangi Bake.

Saving on overhead costs

With a cloud kitchen, you save so much on overhead costs. You don’t need client-facing staff, decoration or space entrance, parking area etc. Even if you have lower-priced menu items, your profit margins are likely to be better.

Cloud Kitchen Business Models

The independent cloud kitchen model – Single brand, single kitchen, no storefront.

This is the original cloud kitchen model. A restaurant with no seating space and no physical store. Restaurant owners or food business entrants sidestepping high rents and real estate costs by shedding the front-of-house. This concept gained popularity with the growth of online ordering and growing consumer demand for deliveries.

 

Typical kitchen size – 500 – 600 sq ft.

How it works

Orders come from online sources

Kitchen only

Specialized in a cuisine

Delivery only

A mix of aggregator dependency and self-reliance for orders and deliveries

The Rebel foods (Faasos) business model – Multi-brand (cuisine), single kitchen, multiple outlets, no storefront.

The more elaborate cloud kitchens are based on data intelligence such as area wise demographics of residents, popular cuisines and hyperlocal demand-supply. The idea here is to address the demand for the most ordered cuisine (Biriyani, North-Indian, Chinese, Burgers, Pizza & Pasta – that’s really it in India) in a neighborhood (a 5-6 km radius) with relatively lesser restaurant options that serve these dishes. This model is clever because it positions the separate brands as their own individual establishments. And having a single shared kitchen keeps operational costs low. This model closely resembles the original cloud kitchen model with no physical storefront. You could think of it as specialized cuisine based cloud restaurants, owned by the same mother brand, sharing the same kitchen.

How it works

Orders come from online sources

Single kitchen, multiple brands

Each brand specialized in a cuisine

Delivery only

A mix of aggregator dependency and self-reliance for orders and deliveries

The Freshmenu business model – Single brand, single kitchen, multiple outlets, with a storefront.

This is kind of a mashup between a takeaway restaurant and a cloud kitchen. It resembles a cloud kitchen business model for the most part, but also has a storefront. The storefront exists to allow customers to walk in and see how their food is prepared, should they ever want to. In essence, this model utilizes all the operational efficiencies of the cloud kitchen business model but also has a “real” window with customers.

 

Typical kitchen size – 1200 – 2000 ft

How it works

Orders come from online sources

Single kitchen, single brand

Changing menu that has a mix of seasonal dishes and bestsellers

Delivery and take away

A mix of aggregator dependency and self-reliance for orders and deliveries

The Kitopi business model – Cooking and delivery fully outsourced

This is a relatively newer concept in the cloud kitchen business model mix. In this model, you can outsource everything from your call center operations, your kitchen and delivery. Imagine a restaurant where a large majority of the kitchen prep is outsourced and gets delivered to your kitchen. Your chefs can then do the final touches and Kitopi picks it up for delivery again.

How it works

Orders come in via Kitopi owned call center, through your own online platforms and third parties

Kitopi buys and stores your raw materials

Then “pre-prepares” the food in its centralized kitchen

Kitopi then sends over the food to your kitchen for final touches

Picks it up and delivers it to your customer

Basic Requirement to Start Cloud Kitchen we are here to Help you out?

Here in this we’ll learn the basic points to keep in mind when setting up a Cloud Kitchen company. Without addressing these mentioned requirements, one can face difficulties in sustaining the company. We are here to help you with complete Registration Process contact for the information.

First things First:

Location & Property

 

Licenses:

FSSAI (Food Safety & Standards  Authority of India.

GST: (GST Registration)

Trade License 

Fire & Safety License

Additional License:

Trademark Registration

Kitchen Equipment & Packaging:

The kitchen equipment depends on the type of cuisine you serve. The basic equipment required to start a cloud kitchen is – stove and oven, refrigerator, knives, etc. Here is a full list of kitchen equipment to operate a food delivery company.

The packaging is a vital part of running a food company. No matter how good the food is, it will end up destroying the whole consumer experience and giving the company a bad name. Packaging also depends on the food type. You’d need plastic containers, bottles, spoons, etc. to ensure proper food packaging.

Get a Shop & Establishment Registration for your Cloud Kitchen. Register your shop with local municipality through Gumastadhara License.

Recruiting Staff

Because there’s no House Front, you don’t need many people in your cloud kitchen. Only 2-3 people concentrated on preparing and distributing food, you can easily open a shop. When you have several kitchen brands, the same chef will prepare food for various brands. Starting with a small team is best, and you can recruit more staff as incoming order volumes increase.

Since there would be employees, to stay compliant, the business owner will take care of all relevant rules and laws. Professional tax registration, TDS, PF, Payroll and wage measurement becomes an essential and critical part of the business.

Salary Accounts, PF, etc: Unfortunately, this is the last thing most cloud kitchen owners do as the blue-collar employees aren’t too concerned about paying taxes and getting Provident Fund. When you’re in serious business with a long-term target, it’s important to start the cycle from day 1. It actually helps the team in the long run, building trust and friendly relationships with everyone.

Generating Online Orders And Marketing 

Once you’ve set up the kitchen and staff, generate online orders for your cloud kitchen company.

Since a cloud kitchen doesn’t have a dine-in facility and relies solely on online and telephone food orders, spending on promoting the food delivery brand is important, at least in the initial days. Without a shop with no display boards and signage, online marketing is important in this situation.

  1. Listing Your Cloud Kitchen On Online Food Aggregators

  2. Promoting Your Cloud Kitchen On Online Aggregators

  3. Social Media Marketing  

  4. Search Engine Optimization

  5. Loyalty Programs And SMS & Email

 

Conclusion

While cloud kitchens involve low risk and high benefit, one should be alert to the competition ahead to make profits. A cloud kitchen will definitely be the next theme. If you plan to grow your company or start a food channel, the cloud kitchen is the safer and wiser alternative considering that you keep it compliant.

Contact for Cloud Kitchen Business Setup our Team is here to help you out.

  • Facebook
  • YouTube
  • Pinterest
  • Instagram

Copyright Reserved 2021 by Chefathomeprep.