Cloud kitchens are the best business option for people who lack the capital to start a restaurant.
They also operate from small spaces, making management easy. However, running a cloud kitchen is more complicated than one might assume because many factors are involved in this business.
Let us go through an overview of these factors and steps.
Decide your location
Cloud kitchens typically require low investment because the real estate cost is lower than a restaurant. Thus, location is the primary differentiator between a cloud kitchen and a restaurant.
There is no need for footfalls, parking spaces, and high-end sites in a cloud kitchen model. You only have to ensure that the location has proper sanitation and water supply at a low cost.
Figure out the online ordering procedure
After you have decided on the location, you will have to arrange the technology to implement food orders.
Collaborate with delivery platforms such as Swiggy, Zomato, Foodpanda as a first step. Mostly, the charge is 18-30% of your price per order and a one-time integration fee is involved for some companies.
Since a cloud kitchen requires an online presence to attract customers, so you must have a website with an ordering option at all costs.
Advisable is to opt for services provided at POSist because it is ideal for placing orders and customer management.
You will need other miscellaneous items such as mobile phones, a board line, high-speed internet, a small counter, chairs, and stationery. A Cloud Telephony subscription will ensure that no call gets missed.
Acquire The Required Licences
You will have to acquire some licenses in the first month of operations for smooth business, such as FSSAI, GST, Municipal health trade licenses, and fire licenses. Advisable is to approach an agency to do this work for you because it is time-consuming and tedious.
Acquire Equipment and Raw Materials
The cost of equipment, raw materials, and other things will depend on the type of food you are serving. It is ideal to start with a small menu and expand it as your revenue grows.
Remember to spend money based on the quality of equipment instead of the quantity. Heavy equipment like a chimney, deep refrigerators, and burners will hike the price.
Similarly, the raw materials will also differ according to the type of food.
Remember that creating a brand impression is not easy in a cloud kitchen, and packaging plays a crucial role. So ensure that you invest a fair amount in food packaging.
Fulfil The Staff Requirement
An efficient team is the most crucial part of any food-related business. A minimum of five kitchen employees run a cloud kitchen business, including two chefs, two helpers, and one housekeeper.
The salaries of your employees depend on their experience and expertise. You will also need employees for deliveries and the counter, but you should seek help from third-party delivery services.
Even though a cloud kitchen is different from a restaurant, it still needs to have the same seriousness.
At first glance, it may feel like a cloud kitchen does not require uniforms. However, having a dress code ensures more discipline, uniformity, and a sense of identity.
You must also provide your staff with hygiene equipment such as hair caps, masks, and gloves.
Market Your Cloud Kitchen
Several people have started a cloud kitchen business, thanks to the rise of services like Swiggy and Zomato.
The competition in this field is tough, so proper marketing and advertising are a must. Marketing is even more crucial for a cloud kitchen because it becomes a central source of getting orders.
Online marketing is ideal for a cloud kitchen, so ensure that you are up to date with internet marketing concepts.
The first step is to get your restaurant registered on sites such as Zomato and Tripadvisor.
It will allow customers to leave ratings and reviews, giving your business a legitimate feel.
Get in touch with food influencers and be active on social media. After you have generated enough revenue, you should get an app developed for your cloud kitchen.
Cloud kitchens are not a replacement for restaurants, but the concept has become quite popular due to the pandemic.
One may expect this business to become more mainstream in the future because it provides an easy way to make money and increase employment.