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Cloud Kitchen Concept & It’s Model

The cloud kitchen is the restaurant kitchen that accepts the order only through the online facility and will not provide the dine-in facility. The cloud kitchen is also known by the names ghost kitchen, virtual kitchen, dark kitchen or restaurant-as-a-service (RAAAS). The cloud is designed exclusively for online ordering or delivering. It has no physical existence and no servers.

Cloud Kitchen Concept

Cloud Kitchens can have their online food ordering website and online food ordering apps or they can also accept the orders from the various food ordering platforms such as Zomato access, Swiggy access, etc. It is important to have a point of sales software by which you can manage everything and can also accept orders from multiple sources.

Some most popular cloud kitchen examples are Box8, Eatlo, Hellow Curry, iTiffin, etc.

Why Invest in Cloud Kitchen?

If you see the current scenario in any metro city, you can see that it is not so easy to get space for a restaurant. If still, you are lucky to get a space either it is too small or it might be too expensive which you can’t afford. But according to the profit-wise, your profit is in your own hands because most of the cost that occurs in the physical restaurant is not occur in the cloud kitchen which saves you money.

On the other hand, the cloud kitchen can also change the type and cuisines of it by hiring the right chef for it.

With the cloud kitchen, you have N number opportunities because all it needs sufficient space of a kitchen and traffic of hungry customers. Cloud kitchen involves minimum risks and is one of the safest start-ups if you are planning to invest in some business.

But always remember, Cloud Kitchen needs lots of efforts, planning & marketing to survive.

Things to kept in mind while opening a Cloud Kitchen:

1.    Deciding the location of a Cloud Kitchen Restaurant

The main reason behind to open a cloud kitchen is the real estate cost. In the cloud kitchen model, you don’t have to worry about the physical location of a restaurant, parking spaces, etc. You can choose the location of a cloud location according to the customer demography and the types of food products that you are selling.

2.    Online Food Ordering

Once you decided the location of a Cloud kitchen then you need to decide the technology by which you are going to accept the food orders. There are many platforms by which you can run an online delivery system such as Swiggy, Zomato, etc. which can accept the order online on your behalf and deliver it to the following customer. There is a one-time integration fee charged by these FoodTech companies and they also usually charge 10-25% of your revenue per order.

Since a Cloud Kitchen totally relies on its online presence to draw the customers in, a website is must control the business with the option of an online food order system.

3.    License foe the Cloud Kitchen

License is one of the most important and integral parts of setting a restaurant. There are few licenses which are important to procure before setting up the foot in the food and restaurant field. These are FSSAI License, Fire License, GST Registration, etc. It is advised to hire a third party agency for applying for all the licenses because it is a hectic & time taking process and these agencies know how to make it quick.

4.    Kitchen Equipments & Utensils, Raw Material, and Packaging Material

The setting cost of a kitchen may vary depending upon the food cuisine you are offering. It may vary from Rs.1,80,000 to Rs. 2,50,000. If you spend your money wisely on purchasing the new electronic items and old equipment such as tables, racks, chairs, and shelves then you can save them lots of money in this. if you purchased the heavy equipment like chimney, burners, griller and deep refrigerators then cost can go up to Rs.2,50,000.

Lastly, the raw material for the kitchen like groceries, packaging, dairy products, etc. will cost you around Rs.20,000 for the operation of 5-6 days.

5.    Staff for Cloud Kitchen Restaurant

The invisible wings behind the successful restaurant which helps it to fly high are the team of the restaurant that works for it, and the chef plays the most important part in the team as he/she not only prepare the food for the customers but also helps in designing the menu.

In an online kitchen, you need a minimum of 4 employees in which you need at least 1 chef, 1 helper, 2 delivery men, and 1 for a counter.

Average Salary of the staff

CHEF Rs.14000 – Rs.15000 (Depending on their exp.)
HELPERS Rs.6000 – Rs.8000
DELIVERY MEN Rs.6000 – Rs.8000
COUNTER Rs.6000 – Rs.8000

6.    Staff Uniform for Cloud Kitchen Employees

Some people think that for the cloud kitchen restaurant the uniform is not required for the staff. However, it is highly recommended to have a dress code here as well for maintaining discipline, cleanliness, and hygiene. The cost for the staff uniform goes around Rs.7000 – Rs.8000 at Rs.150 – Rs.200 per T-Shirt. However, if you give the bulk order of the T-Shirt the cost will come up to Rs.150 per T-Shirt.

7.    Point of Sales Technology

The complete food ordering and delivery system depend upon the proper acceptance of the food orders. it is important to track the number of incoming orders from the various online food ordering platforms. Tracking of the orders and detailed reporting is very important for the smooth function of the restaurants.

8.    Mobile Phones and Other Miscellaneous Devices & Items

As you are going to run the online kitchen you require a board line, mobile phone, high-speed internet, a computer or laptop, small counter, chair, and some stationery items as well. Apart from all this, you can also subscribe to the cloud Telephony so that no calls get missed and you can also record the calls for the Training Purposes. The total cost for mobile phone and Cloud Telephony Subscription can go up to Rs.40,000.

9.    Marketing

Proper marketing and advertisement are very essential for the success of any restaurant. For a Cloud Kitchen, marketing is even more important as you have an only single source for getting the orders. As you are not spending your money on the location and their maintenance cost, you can use that money in the marketing of your Cloud Kitchen. Online marketing works in favor of Cloud Kitchen and helps it to grow quite well. But first, you have to make your restaurant registered in the restaurant listing and review sites such as Swiggy, Zomato, Burrp, etc. You can post an advertisement on Facebook also mentioning the special deals and discounts on it. You can also distribute the pamphlets via newspaper or door to door. For 25,000 pamphlets it cost you around Rs.18,000 (i.e. 70 paise per pamphlets).

Pros

  • Streamlined food order process
  • Low operational cost
  • Easy expansion

Cons

  • No dine-in personal touch
  • Limited dine-in audience
  • Limited brands as compared to physical outlets

Must Read:

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