why should you start a cloud kitchen in 2020?

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 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 the 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.

The Pros

  1. 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.
  2. 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.
  3. 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.
  4. Competitive Prices – Because you save on a lot of operational costs, you can offer your service at an affordable and competitive price.
  5. 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.
  6. Growing demand – There are 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.

The Cons

  1. 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.
  2. 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 launch a wildly profitable cloud kitchen business model in 2020, Chef and Cloud Kitchen Mentor- Dheeraj Bhandari is conducting 5 Live Interactive Sessions on starting a Cloud Kitchen.

Click here to Sign Up and Reserve Your Spot Now! The Course starts on 25th August 2020.

For further queries contact me at [email protected] or ping on my Facebook Page (click on the WhatsApp button on my Fb page)


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