It is a commercial kitchen space where food businesses can prepare menu items for delivery and takeout. Unlike traditional brick-and-mortar locations, cloud kitchens enable food businesses to make and deliver food with minimal overhead.
The cloud kitchen business is growing quite rapidly due to various reasons.
- Affordable startup: Kitchens offer affordable setup costs. There is no need to spend much in preparing the place. As long as the place is good, you may need to invest in friendly and warm interiors.
- Low overhead costs: Compared to other traditional kitchens that have to pay taxes and deal with high maintenance costs, cloud kitchens have low overhead costs.
- Easy expansion: #Cloud #Kitchen provides you the provision to expand your market as per your choice and there is no additional cost or planning involved. Since cloud kitchens are virtual kitchens and are completely dependent on online food ordering websites and apps, it is easy to expand a cloud kitchen business.
- Low Labor Cost: Cloud kitchens are highly beneficial in terms of low labor cost as compared to restaurants or other traditional kitchens where labor cost is high along with maintenance cost and tax benefits.
- High Profit Margin: Cloud kitchen is a virtual kitchen where the overall profit margin is very high due to low overhead cost, low labor cost and low overall maintenance as compared to other restaurants.
Everything you need to know about the business to start this business
Do you know how many types of cloud kitchens are there?
- Private Cloud Kitchens: These are small-scale cloud kitchens with limited menu items and a small team of 4 to 5 people. The average area required for a complete cloud kitchen is around 300 square feet.
- Virtual Restaurant: A virtual restaurant operates in a restaurant, i.e. a restaurant listed on online food apps or websites. Kitchen restaurants are used as virtual kitchens to facilitate serving food to customers.
- Multi-brand cloud kitchen: Based on a close analysis of the food consumption habits of people in a specific region
- Hybrid cloud kitchen: This model includes a takeout restaurant and a cloud kitchen.
Process of setting up a cloud kitchen in India-
To understand how to open a cloud kitchen in India, as in every business, you need to understand the investment, location, licenses, and various other factors.
Place
For cloud kitchens, location implies premises with good sanitation facilities, stable water supply, and nominal rent. It should be a place where you can expect a high demand for the type of food you offer.
License
No business can be set up without a license. The same applies for a cloud kitchen business. Setting up a cloud kitchen requires two licenses in the first month.
These include:
FSSAI License
GST Registration
Municipal Health Trade License
Fire License
Kitchen Equipment
One of the basic requirements of every cloud kitchen is the types of kitchen equipment, and these equipments completely depend on the cuisine or concept of your cloud kitchen. These are the only products that summarize the major cost investment.
Packaging
Packaging is one of the most worrying things in setting up a cloud. No matter how delicious or cooked it is, if it is not handled and packed well, it will not do well in the market.
Online Connection
You will need a good telephone board line, uninterrupted internet, and mobile phones. You need to be digitally active as the whole concept runs on a virtual platform.
Marketing
Since millions of customers are placing their orders on food websites like Burrrp, Zomato, and Swiggy, registration is a must. You can also advertise on Facebook, Twitter, Instagram, and other social media handles by uploading pictures of your location, menu, cuisine, and more.
Staff
The selection of kitchen staff is one of the most important aspects in setting up a cloud kitchen. Although the number of staff required is small, they are well trained, skilled and need to have the required skills to enable smooth operations of your cloud kitchen on an ongoing basis.
