Since the pandemic imposed itself upon us, most people prefer to dine-in indoors. With the anxiety and fear associated with the COVID 19, takeaway meal options and cloud kitchen is trending in India. And there are signs that the trend of cloud kitchen business is here to stay.
According to a Livemint report, the cloud kitchen business is expected to become a $2 billion industry by 2024, which was $ 400 million in 2019.
A cloud kitchen is primarily a restaurant kitchen that offers food services to consumers. They do not have any physical dining space and only take delivery orders that are placed online. Cloud kitchens are also known as virtual restaurants, dark kitchens, ghost kitchens, and satellite kitchens.
Some of the best examples of cloud kitchens are Faasos by Rebel Foods, Biryani by Kilo, and Hoi Foods. If you too want to venture into the cloud kitchen business, here is everything else you need to know:
1. Location
The idea of a cloud kitchen business needs low-investment and the reason behind it is the real-estate cost. When it comes to the cloud kitchen business model, the location does not play a vital role. However, proper sanitization and water supply are required.
Choosing a location for your cloud kitchen can make a huge difference if selected carefully. Also, the location should be chosen based on the type of food you are selling and the customer demographic.
2. Choosing Online Food Delivery Platform
Once, the location is selected for the cloud business kitchen, the second step involves selecting a technology to receive orders and get them delivered. Platforms like Swiggy, Foodpanda, and Zomato are some of the most established online ordering and delivery platforms.
These online platforms accept orders on your behalf and also deliver them at the customer`s door-step after picking them from your cloud kitchen. They will usually charge 18-30% of your revenue per order.
3. Build a Website
The cloud kitchen relies solely on its online presence, which is why building a great-looking website is essential. A brilliant-looking website with appealing food pictures will draw in customers.
Various website developers can build a beautiful website that will increase the appetite of customers at a low-cost. You can also offer your customers a facility to track their orders on a real-time basis.
4. Get a License
Getting a license is an integral part of setting up a restaurant. There are few licenses like FSSAI, GST Registration, fire licenses, and Municipal health trade licenses. It is important to get these permits in the first month of operations for a smooth cloud kitchen business.
5. Kitchen Equipment & other Raw Materials
Depending on how vast and expansive is your food-menu; the cost of setting up a cloud kitchen may vary. If you spend wisely on kitchen equipment like old tables, storing shelves, racks, you can save a lot of money.
For raw materials, it is important to choose the right vendors at the early stage. When it comes to packaging, you should allocate an extra budget. Many people think that packaging does not require much. But, packaging plays a huge role in a cloud kitchen business.
Good packaging can preserve the quality of the food and keeps it in a good shape. A creative take on the packaging also creates a good brand image.
6. Choosing Staff
The secret recipe of a successful cloud kitchen is the team lead by a highly professional chef. With the Chef being the most critical part of the team, you can offer your customers an exquisite food menu. So, pick wisely.
7. Point-of-Sale Technology
It is important to keep track of the number of orders coming from diverse online platforms in a cloud kitchen business. Choose a customized POS to suit all your requirements on the online ordering website.
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