Cloud kitchen is all the craze currently in the food delivery industry. But before diving right into investing in the cloud kitchen business, some critical components make it work.
Many people talk about how great and raving ghost kitchens are because it’s way less investment than building your restaurant. It involves lower rent and maintenance costs.
But it’s not that easy to start a ghost kitchen business. Since the cloud kitchen business model requires very little investment, there is fierce competition in the industry, and if you don’t have a well-thought plan to run your cloud kitchen, you will be losing a lot of money. You must know how to manage your food, labor, and operational costs to be profitable.
Let us look at the tips and steps to Run a Successful Cloud Kitchen Business.
Tips To Run a Successful Cloud Kitchen Business
Cloud Kitchens get orders from various restaurant brands. Cloud Kitchens must maintain a unique taste for different brands. It is tricky as many brands send their orders to the same cloud kitchen.
However, cloud kitchens can invest in hiring more chefs and assign them different brands. It will lessen the burden on chefs as their duties and departments will be separate. Moreover, it will reduce errors and time to prepare the food.
The cloud kitchens do not involve dine-ins, so there is no need for wait staff to manage the customers and table orders. The only major concern is the quality of food.
The success and failure of your cloud kitchen rely majorly on your food quality and taste. So, ensure to hire highly skilled and experienced chefs who can prepare a variety of cuisines, decide and prepare menu items, etc.
A Point of Sale software with the Kitchen Display System is a wise investment. The Kitchen POS sends food orders to the kitchen that chefs can see on the computer display.
Chefs can start preparing meals as soon as they receive the order. Once the meal is ready for delivery, they can mark the order as done and send it forward for packaging.
The POS software records each step of the order processing, from order acceptance to preparation, packaging, and delivery.
It helps cloud kitchen owners track and optimize the order preparation time. In addition, it saves cost and avoids delays between one stage of order preparation to another.
Standardized Delivery Procedure
Cloud Kitchens interact with their customers through their food taste, quality, and delivery services.
Cloud kitchens must follow a standard delivery time and procedure. Inaccurate or delayed deliveries will affect your kitchen brand negatively.
To run your cloud kitchen business successfully, you must ensure to make deliveries with utmost accuracy each time.
For this, you need to hire highly proficient chefs staff who are well-versed in preparing the meal within the specified time to assign the order to the delivery staff.
The delivery staff must be well experienced in using navigation and maps to find short and optimal routes for timely deliveries.
Market Your Cloud Kitchen Business
If you think because you are on third-party apps, you will automatically get new business for your cloud kitchen; then you need to rethink.
Yes, you are visible to the customers and may get orders, but the competition is high and getting more and more saturated.
So it would help if you had this mindset to market your business like a new business all the time. To run a profitable cloud kitchen, you must market it like a new business.
You need to increase and maximize the number of touch points between your brand and customers to market your business.
You want to be able to touch on all the different types of channels, the web, social media, and mobile apps.
Here are some ways:
Optimize the Website: If you have a website for your cloud kitchen, make sure it’s SEO-optimized, so when people search for, say, best chicken wings, they will be able to find you.
Increase Touchpoints: Be present and market on all your social media channels, whether Twitter, Instagram, or TikTok. Influencer marketing is also highly trending and effective to promote your business.
So, these are all areas where you can increase the touch points. Last but not least, remember to capture customer emails for future promotions.
Email Marketing is an old yet effective method of promoting your business among many users. You can email people about new menu items, special discounts, offers, contests, etc.
The right technology can bring automation to your cloud kitchen operations. Automation makes tasks easier, reduces manual errors, and makes management efficient.
Since Cloud kitchens handle orders from multiple restaurants, they must have automation tools to help them successfully run their cloud kitchen business.
Upgrade your kitchen with standard and quality equipment to help chefs prepare food within the stipulated time.
High-quality kitchen equipment helps in proper chopping, cutting, and grinding, which is a must to prepare good quality food.
Kitchen POS and Kitchen Display System not only help you take orders faster with no errors, but they also support many other useful features. For instance, Customer Relationship Management (CRM), inventory management, etc.
Managing inventory is tedious for cloud kitchens as they receive orders from multiple restaurants. They have to maintain receipts and invoices of each restaurant separately.
Moreover, Cloud kitchens also need to maintain a bunch of kitchen ingredients, equipment, and utensils. It is a must to maintain a record of all these.
Manual inventory handling will be time-consuming, require extra labor, and have a high chance of manual errors. The cloud POS with an integrated inventory management system can help.
An online inventory management system keeps track of grocery stock in the kitchen, maintains a record of kitchen equipment, and helps maintain each restaurant’s invoices on a single dashboard.
Provide Great Service
Cloud Kitchens have no scope of direct or physical interaction with customers. They have only to impress their customers through seamless and efficient services.
Besides delicious food and timely deliveries, cloud kitchens can make their deliveries stand out through standard and customized packaging.
They can invest in good quality packaging boxes that maintain the food temperature and keep food hot for long. Ensure safe and hygienic deliveries for higher customer safety and loyalty.
Customized packaging boxes or poly bags work as an important yet affordable marketing technique. Print your brand logo on food packaging boxes and bags and keep the promotions on even while delivering.
A small customized note or gift also attracts immediate attention. Take care of the special notes or customer requests to please them. For instance, extra spices, less salt, etc.
These small measures greatly help create a positive impression about your brand and impart a positive customer experience.
Cloud kitchens are much more profitable and should be more profitable because there is no need for a fancy or large space, decoration, etc. You can take up a kitchen at minimal rent or utilize your spare property to start and run a cloud kitchen business.
However, for for-profits, you are only relying on online food ordering and delivery sales. A large amount of your profits goes into the hefty cost of third-party app commissions, which goes from 20 to 30 percent.
To level that up, you can optimize your labor costs. If you do not manage these two properly, it will not be easy to be profitable.
To optimize your labor costs, you must cross-train your staff so they can either be doing financing or marketing during the down times. They can manage a bunch of other things to take a load off your plate so then that way you can maximize their labor hours.
So, these are the critical components to make your cloud kitchen business profitable and run successfully.
With greater demand for quick and efficient deliveries, more brands are shifting their interest toward setting up cloud kitchens.However, it is crucial to know the right way and route to run your cloud kitchen business successfully.
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