Cloud Kitchen is nothing but a virtual kitchen where you don’t have dining space, unlike traditional restaurants. Customers make orders online. That’s the only way they get in touch with you. And you have a delivery service in place to serve the orders.
Brick and Mortar businesses have come to a grinding halt due to the unforeseen COVID-19 pandemic. This includes restaurants, cafes, and eateries as well. That’s one good reason why should consider starting a cloud kitchen in 2020.
Moreover, cloud kitchens have been on the rise recently since the current generation frequently makes orders online.
Cloud Kitchens are projected to become a $2 billion industry in India by 2024, according to RedSeer Management Consulting. That’s up from $400 million in 2019. – LiveMint
Like any business, Cloud Kitchen also has pros and cons.
- Low Investment- Unlike physical restaurants or dine-outs you need out rent out or buy a space. The set-up costs are much lower for a cloud kitchen biz model.
- Low Risk – If you are new to this concept and want to test the waters, then you need not shell out a fat amount to get started.
- Low Operation Cost – Cloud Kitchen saves labor charges, maintenance charges, etc. involved in a restaurant business. If you are someone who owns a restaurant or a cafe, you would know all the costs that you would have to incur to keep the business running.
- Competitive Prices – Because you save on a lot of operational costs, you can offer your service at an affordable and competitive price.
- Advertising is cheaper – This is an online business model and hence required a digital mode of advertising. Social Media Marketing plays a big role in creating brand awareness, establishing trust, and thus increasing sales.
- Growing demand – There are a lot of people ordering food online, as frequently as five times a week! People with a tight work schedule heavily rely on online food delivery services.
- Fully online – Cloud kitchen is fully online and your customers place orders online only. Initially, creating brand awareness is a challenge. The older generation is still not that comfortable placing orders online.
- Technology dependant – You need to have a strong internet connection, and use technology to be able to run this business model successfully.
If you are looking to start a wildly profitable cloud kitchen business model, you can derive inspiration from successful CloudKitchen businesses. Also, consider looking up Chef Dheeraj Bhandari and Business Coach Dr Abhivav Saxena on YouTube. They provide valuable information about how to launch and run a profitable cloud kitchen and pitfalls to avoid in the process.
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Let me know in the comments what you think about cloud Kitchen and if you’ve come across any Cloud Kitchen success stories.