Cloud Kitchen Business Plan
Looking for information regarding cloud kitchen business plan? Look no further. We are here with all the answers to your queries about making a business plan for cloud kitchen startups read following …
What is Cloud Kitchen ?
Let us first start by understanding what is a cloud kitchen business? A cloud kitchen is a delivery-only restaurant that has no physical space for dine-in.
This cloud kitchen business depends entirely on online orders placed through online food aggregators or an online food ordering-enabled mobile app like SkipTheDishes, UberEats, Instacart, DoorDash, Tim Hortons, GrubHub in Canada United States & Zomato, Swiggy, in India.
What is Cloud Kitchen Business
Imagine that you would like to order food at your favorite restaurant. Instead of going there, you could order online and get it delivered right to your door.
Imagine a cloud-based kitchen as a virtual dining room. It does not have a dining area for customers to sit down and eat. It focuses on only preparing and delivering the food to its customers.
Cloud kitchen businesses are typically run from a central kitchen, usually located in an industrial zone, that houses several food brands and concepts under the same roof.
The brands can specialize in specific foods or cuisines. Cloud kitchens receive orders via online platforms or apps for food delivery and prepare the food according to those orders.
The food is then packed up and given to the delivery driver called delivery boys for quick delivery to homes and offices.
Cloud Kitchen Business Example
Let’s take the example of a cloud-based kitchen named “Foodie Hub“. Foodie Hub is a cloud kitchen that has different brands of food operating in it, like “Pasta Palace,” “Sushi Spot,” and “Burger Bites“.
These foods are being order by the customers via online food ordering app only, there is no any physical place to visit and order foods and dine in.
FoodiHub listed their menu on the Food aggregator or ordering apps like UberEATS, Grubhub, Zomato & Swiggy.
When a customers order a food items on these food ordering apps for the any items listed in the menu of Foodie Hub cloud kitchen the request is generated and received in computer & POs terminal at Cloud Kitchen. ( This POS is linked with a kind of software, sometime access provided by food delivery app companies as a service provider for orders and billing management this is key element in cloud kitchen for sales ).
Foodie Hub Cloud kitchen operator accept the order in ordering system and system assigned a order id and nearest delivery boy and simultaneously generate a Kitchen Order Ticket for reference of food preparation by kitchen staff.
Foodie Hub Cloud kitchen system operator update the system by status of food like, ‘Order being Prepared, Packed, Dispatched time to time while system automatically kept posted status update to delivery boy as well as customers.
Delivery boy revived the updates about food status and when this ready for dispatch he pickup the order from cloud kitchen and deliver it to customer.
Here you saw Foodie Hub prepares food for customers who order through an app even though you might order food from Burger Bites or Pasta Palace, it could still be prepared by the same chefs as Sushi Spot and Pasta Palace is being prepared by and delivered by the delivery staff.
Some Big cloud kitchen startups also used their own food ordering app and system for this purposes.
Why Cloud Kitchen Busines is Popular ?
The cloud kitchen has become very popular due to its many advantages. Food entrepreneurs can start their restaurant business at a lower cost than opening a restaurant as opening a restaurant is costly option as renting and prices of real estate and properties are sky high in busy places.
Instead of paying hefty amount for buying or renting property at prime busy places it is cost effective way to rent or buy property at economical places and deliver the food via app.
The cloud kitchens are more flexible, as they can accommodate multiple brands of food. Cloud kitchens provide a variety of options for food delivery. They are often faster due to the streamlined operation.
“A cloud kitchen is, in summary, a virtual business that runs from a central kitchen. It prepares and delivers food to its customers, without having an actual dining room.”
What are the Benefits of a Cloud Kitchen Business Startups?
The cloud kitchen brings multiple brands and concepts together under one roof. Customers can order online or receive food delivered to their homes.
The cloud kitchen business is a new concept in food catering business that gives the restaurant the flexibility to launch more than one brand using the same kitchen infrastructure.
Multi-brand cloud kitchens allow the restaurants to utilize the same kitchen infrastructure and resources to operate more than one brand. Multi-brand
Try to understand by above example a restaurant owns a delivery-only kitchen and delivers North Indian food can start offering Italian food. He can also operate a different brand that sells Italian from the same delivery-only kitchen.
What is Cloud Kitchen Startup Cost
A good thing is that a cloud kitchen business requires less investment. A cloud kitchen business dissolves all the requirements of setting up a front, which means no heavy expenses on decoration, dinnerware, or rent of location at shopping area or at market, you just need to space for your kitchen which can be open at non prime area and serve the food delivered by online or mobile food ordering Apps.
Thus You need to invest only in space which will be less expensive in comparison of prime commercial space, kitchen equipment, cooking or kitchen staff & internet ordering system.
Cloud kitchen business can be setup within as little $5000 to $10000 of investment which can be gradually scaled up for diversification of food menus etc.
Start-up costs can be further reduced if you desire to lease a kitchen from virtual kitchen providers as there will be no commitments for the inspections, construction, or zoning compliance.
As a result, you can start your business comfortably within weeks.
Cloud Kitchen Higher Profit Margin Business
It is to note that the traditional restaurants struggle a lot to remain profitable as they are burdened with high expenses, such as labor costs, cost of the utilities, and property taxes that a cloud kitchen do not have to deal with.
These kitchens on the other hand, rely on limited on-demand labor with a chef, and thereby improve profitable margins. Further savings in the form of scale advantages can be made if the kitchen serves multiple delivery-only brands.
Cloud Kitchen Menu Flexibility
Please note that, a web/app-based ordering system in cloud kitchens allows for more flexibility when it comes to setting up a menu, and its as a dish can be easily discarded based on the customer feedback without any menu costs. This also readily helps in food wastage.
Cloud Kitchen are More Efficient
Cloud kitchens are usually involved in the customer journey from the get-go from order placement to its fulfillment, they get access to a lot of customer data, which can be utilized to optimize processes, orders and delivery times as well as staff scheduling. Therefore it improves efficiency.
This process becomes even more critical if you are running multiple brands from the same kitchen.
Cloud Kitchen for Greater Brand Exposure
The cloud kitchens advertise either through social media or from the delivery apps that have tie-ups with, can reach a large audience while eliminating the need for narrow marketing channels.
You may also like to know more about best fast food business ideas in India in 2023-24
How to Make a Proper Cloud Kitchen Business Plan?
How to Start with a Cloud Kitchen Business Plan
You must know that the first step in starting any kind of business is to create a dedicated business plan where yo need to write various aspects of prospects business which also included demand and supply analysis and investment required and tentative sales and margins analysis.
Drafting or writing your cloud kitchen business plan ppt or pdf you should incorporate following information which will help you to initiate your activities and business smoothly. you can also use cloud kitchen business plan sample as a base templet to modify & make your one.
Your cloud kitchen business plan will serve as a blueprint for your business and will help you to establish your short-term, as well as your long-term goals. It also include a financial projection for your business.
Decide what kind of Cuisine you Offer in your Cloud Kitchen Business
A very important aspect that you should keep in mind while starting a cloud kitchen business is the type of food you are going to offer to your customers.
You have to take a decision, such as what type of cuisine you want to offer. This will surely help you narrow down your search for a suitable location and also helps you in determining the right kind of equipment.
There are so many kind of cuisine from where you can choose from. Just select the one that best suits your business.
You will also need to make sure that the food you are going to serve is delicious, so that your customers will keep coming back to you in the near future.
Decide a Location for your Cloud Kitchen
Adding a suitable location for your business in your cloud kitchen business plan should come next.
Once you are sure about the type of cuisine you are going to offer, it is time to decide what will be your location. The first and the most important thing is that you need to go for a good location for your business setup.
Go for a location that is easily accessible and has good infrastructure. It should be close to your target market and should have a good access to transportation and utilities.
It is very important to have a good location because it will determine the success of your cloud kitchen business in the future.
You need to make sure that the location you go for should have a good transportation system, so that your customers can easily reach your cloud kitchen business.
Get the Relevant Registration & Food Licenses for Cloud Kitchen
It is very important to get all the necessary permits and licenses from the authorities before you start your cloud kitchen business.
You will require to get a license from the Food and Drug Administration (FDA) as well as from the local Municipal Corporation.
You should also need to get a license from the fire department if you are planning to use gas for cooking.
How to Hire Staff if Required for Cloud Kitchen
Now that your kitchen is set up, you will need to hire the relevant staff. Make sure that you hire experienced and reliable staff who can help you run your cloud kitchen smoothly.
What is an Online Order Management System in Cloud Kitchen Business
The majority of your business model will be based on food delivery aggregators. Foe example, Swiggy in India. It will heavily depend on the number of orders, proper tracking, preparing and devlivery.
Imagine having to manually write each order from a different food aggregator, and then conveying it to the staff.
This can break the smooth flow of your cloud kitchen due to the possible errors, lack of relevant information and so on.
Our team recommends you to have a restaurant online order management system that is suitable according to your taste.
Add in your cloud kitchen business plan, how are going to manage your online order management system.
Update your menu and distribute to the platforms accordingly. Revise the pricing and update menus. Inform your clients about the dishes that are sold out, bestsellers of the day etc.
You should also manage multiple food delivery partners with any new food delivery service in the game.
Only Set up your the Kitchen after Preparing a Solid Cloud Kitchen Business Plan
Your next step will be to set up the kitchen. This includes purchasing and leasing the required equipment and getting the required licenses from the authorities.
After you are done hiring experienced and reliable staff for your cloud kitchen, your next step should be buying the necessary equipment.
Get the list of Necessary Equipment Cloud Kitchen
There are some essential pieces of equipment that you will need for your cloud kitchen , such as the commercial cooking appliances, refrigeration units, dishwashers and preparation tables.
Some of the necessary equipment that you will need for your cloud kitchen are given as follows:
List of Equipment’s for Cloud Kitchen Business
- Commercial Refrigerator
- Gas Stove
- Microwave oven
- Storage shelves
- Tabletop griddle
- Deep fryer
- Blender
- Juicer, Mixer Grinder
- Utensils and crockery
- Water filter
- First-aid kit
- Fire extinguisher
Promote your Cloud Kitchen Business
Now that you have all the necessary equipment in place, your next step is to start marketing your business. You can use different marketing channels to reach out to your target audience and let them know about your new business.
You can do this by creating your own website, or by promoting it through social media and online directories. You can also consider exhibiting at local trade shows and events.
Go for a Proper Marketing Strategy
At last, you need to have a great marketing strategy for your cloud kitchen business, read here in detail guide about how to maximize profit from your food business.
You should make sure that you promote your cloud kitchen in the right way so that more people will come to know about it and will be interested in flavoring your services.
These are some essential aspects that you should be aware about while starting a cloud kitchen business.
If you focus on all these factors and keep them in mind, then you can be sure that your cloud kitchen business will be successful in the long run.
By following these simple steps, you can easily start your own cloud kitchen business.
With a little hard work and dedication, you can soon serve delicious meals to your customers from the comfort of your own home.
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You can also read about some of more best fast food business ideas in India to start.
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