4 Reasons Why You Should Start A Cloud Kitchen Business and Not A Restaurant!

restaurant kitchen

Why you Should start Cloud Kitchen Business instead of Restaurant Business?

What are Cloud Kitchens?

Cloud kitchens are basically a common kitchen which is shared by two or more restaurants that have delivery friendly food and menus. Cloud kitchens are facilities that have been centralized for producing commercial food.

Cloud kitchens are a very good example of how technology can be used to manage a complete business.

They deliver food on request like UberEats and Grubhub and use user data to determine which is the most ordered food , what time is the peak for food ordering and what the preferences of customers are.

History Of Cloud Kitchens

Cloud kitchens originated from the time of pop culture , many food businesses rented a shared restaurant due to high prices to cater to customers in the silicon valley.

Due to high costs renting a space became impossible for small business owners. So renting a shared space became important for them to prepare food products. These common kitchens are modernized in today’s time and are known as cloud kitchens.

4 Reasons Why You Should Start a Cloud Kitchen Over A Restaurant!

The advantages of Cloud Kitchen are already being recognized by many players in the market. Cloud Kitchen’s world market size is expected to grow at 12% CAGR  between 2021-2027.

It is expected that startups and industries in cloud kitchens will be able to reach USD 71.4 Billion by 2027 in value.

Here are the 4 reasons why starting a cloud kitchen business is more profitable than starting a restaurant :

1. Lower Operational Costs

As major costs like restaurant furniture and staff are eliminated in cloud kitchens, the costs of operating becomes very low compared to restaurants. The operational costs in this case only include the raw material and regular kitchen operating costs.

2. Lesser Marketing Budget

Promoting a service is one of the most expensive costs in a business.Having a cloud kitchen app can give you a headstart as marketing in supply apps is easier than having to market to customers for a restaurant to make them learn that there is one. Delivery apps also charge restaurants extra to make their listing more visible.

3. Higher Flexibility

Cloud kitchens are more flexible and efficient in terms of orders. When there are orders only then the cloud kitchen functions , if there are no orders then the cloud kitchens do not have to function then.

Order sometimes may be overwhelming and then cloud kitchens work overtime. In this way cloud kitchens are very efficient.

4. Lower Rent

Another important advantage of cloud kitchens is the significantly low rent compared to restaurants. There is no need for fancy infrastructure and environment which is a must for restaurants to attract customers which often leads restaurants to losses.

Tips to Make Your Cloud Kitchen Business a Success

  • Choose the Best Location for Your Cloud Kitchen

The first and foremost thing a cloud kitchen business owner needs to do is to find a central location to rent or share a kitchen.

The location does not need to be fancy as customers will not visit but it is essential that maximum delivery locations can be reached from there for the success of your cloud kitchen.

  • Hiring the Best Chef for Your Kitchen

The quality and taste of the food is very important in a cloud kitchen business as it is the only thing that is going to leave an impression on your customers as there is no physical restaurant.

The maintenance of quality is very important for a cloud kitchen business to retain their customers and to grow their business.

  • Set Up An Efficient Delivery Channel

To maintain and operate a delivery schedule, having an efficient delivery channel is important. You can partner with delivery companies if you do not have your own staff.

It is important to have a good cook and the right app for your cloud kitchen business but it is also very important to set up the right channels for delivery.

  • Set Up An App For Your Cloud Kitchen Business

The most important thing to do is to consult an app development company for your cloud kitchen app development and to understand how you can start your own cloud kitchen business. There are three apps you will need to start your business:

  1. Cloud Kitchen App
  2. User’s App
  3. Driver’s App

The owner of the business can add and remove items from the menu and keep track of orders placed by customers from their user app.The driver’s app is important for the delivery of the food.

  • Share Your Kitchen Space Other Similar Businesses

The setup to share space with other similar businesses will highly reduce your overhead costs . The concept of cloud kitchen is to accommodate multiple brands in the same space and share overheads and maintenance costs.

Success Story of Zomato – Indian Restaurant Aggregator and Food Delivery Start Up

Wrapping Up

The cloud cuisine model has a very bright future and many factors have influenced the growth of this model.

The cloud cuisine model is gaining more and more popularity in countries like the USA, UAE and India. The startup owners of the cloud kitchen business have a great future with minimum costs and maximum exposure!

By Aakash Mangi: Blogger and digital marketer from Visakhapatnam, Andhra Pradesh, India. have a keen interest in new and world-class tech and work at Oyelabs Technologies.