The restaurant space is full of unfamiliar terms, and here is a restaurant glossary to make it all easier for you. This will help you stay up to date with the updated language of the restaurant industry.
What is a cloud kitchen?
A cloud kitchen is a type of commercial kitchen, often described as a ‘ghost kitchen’ or ‘virtual kitchen’, where food companies can set up and deliver their menu items. Unlike traditional brick-and-mortar establishments, cloud kitchens enable low-cost food production and distribution.
A cloud kitchen is a delivery-only restaurant with no physical dining area. It only accepts orders placed online using online food aggregators, websites or mobile apps that support online ordering.
Cloud kitchen business models
All cloud kitchens use the same operational process: after receiving an order, food is prepared and delivered to the customer’s door. However, there is a difference in the way they operate. These restaurants offer delivery exclusively using different business approaches.
Standalone cloud kitchens – These are standalone kitchens without a dining area where a brand owns or rents the kitchen space.
Multi-brand cloud kitchens – In this business model, different brands owned by the same parent company share the same kitchen, reducing operational costs.
Commissary (aggregator) kitchens – Taking advantage of the rapidly growing online delivery market, several delivery aggregators have launched their own cloud cooking models, renting out vacant kitchen space and infrastructure to restaurant operators.
Outsourced cloud kitchens – This concept enables restaurants to outsource almost everything except the final step of every process. The chef gives the food another polish before sending it for delivery.
A coworking cloud kitchen- It is a vital kitchen infrastructure that can be rented and used by various restaurant companies for their operations. These cooking areas are strategically located and each brand’s kitchen unit is equipped with the necessary equipment and amenities.
Benefits of a cloud kitchen
- Lower operating costs – For cloud kitchens, many of the costs associated with running a traditional restaurant are eliminated. With less labor and infrastructure, a cloud kitchen can be made a much leaner business, allowing for a much lower-risk venture.
- Less human resource requirement – Opening a cloud kitchen requires one-third of the time and resources of opening a regular restaurant, as you don’t need to rent space in a prime location or hire staff to serve guests.
- A highly profitable venture – It is possible to start a cloud kitchen with no employees, no kitchen equipment, no furniture costs, and no decor costs.
- Easy expansion – Since the operation is only one kitchen, the total capital expenditure is much cheaper than a full-scale restaurant.
