With the introduction of cloud technology, which allows for online purchasing, and the continuous Covid outbreak, cloud kitchens appear to be the only rational way to manage expensive rents and slim profits. The cloud kitchen, often known as the digital restaurant, is the newest trend in the food industry that has quickly established itself as a powerful restaurant model. With the current state of the restaurant industry, which includes fierce rivalry, exorbitant rents, and rising prices, Cloud Kitchens appear to be a more innovative approach to running a restaurant. The Global Cloud Kitchen Market is expected to reach USD 71.4 billion by 2027, with a CAGR of 12.0% from 2021 to 2027, according to data. The cloud kitchen shows the tremendous potential this wonder format holds.
Apart from that, the cloud kitchen also holds the delivery-only concept. And we all are well aware that delivery optimization is not a new idea in the industry. Even though being to the utmost level, the delivery has started to gain more acknowledgment after the pandemic hit each one of our lives. We can say that consumer behavior and technology have played an essential role in the success of the cloud kitchen model.
Launch Your Own Cloud Kitchen Like App in Matter of Minutes
By looking at the technology aspect, the on-demand economy has been becoming more demanding. And to match the demand and supply is the sole purpose of every on-demand delivery business, and in this case, it backs up the answer to your question – how to start a cloud kitchen? The article is specially crafted to answer each query and offers insights on the aspect one should focus on when developing a cloud kitchen platform.
Imagine a scenario where you have successfully established your cloud kitchen but never thought of not being able to deploy a driver app as good as your platform. This is where the SDLC of an idea comes into the picture. From the very start, the team is wholly focused on creating a workspace completely flexible and reliable as well. But somehow fail to maintain it by the end of the project. Get an idea about the complete cycle of your cloud kitchen platform by consulting a mobile app development company in the USA.
An experienced and strategically based food delivery app development company will suggest you focus more on the driver delivery app. If you fail to provide a reliable delivery app with your cloud kitchen platform, it may result into
- Loss of usage directly affects your business revenue.
- Lower customer retention rate.
- Company’s reputation at stake.
- Losses the undecided user base to the competitors
The pointers are going to be more than sufficient to explain why one should start a cloud kitchen with a reliable mobile app development company. Luckily you are at the right place. From keeping up with the technological trends to being extremely pocket-friendly, our experts are ready to handle them all. Are you ready to get your answer on how to start a cloud kitchen? Talk To Our Experts Now!
Types of cloud kitchen business model
Shared kitchen spaces
The commissary kitchen, often known as the commissary, is a big coworking cloud kitchen infrastructure area where several firms can rent and operate side by side. Individual units dedicated to each brand can be found in these areas. These cloud kitchen areas are strategically placed near delivery points where there is a high level of customer demand. Businesses can sometimes get utilities and equipment, as well as training and consulting services, from cloud kitchen spaces.
This simply works within the confines of the existing restaurants. Despite the fact that they make use of the current restaurant’s physical infrastructure and resources, they operate under a separate brand name by registering with online food aggregators. The virtual brand can have a menu that is radically different from the existing menu, allowing it to explore endlessly.
Aggregator managed cloud kitchens:
These are similar to shared kitchen spaces, with the exception that they are run by online food aggregators such as Swiggy, Zomato, and others. In the industry, this model is referred to as ‘shell.’ The aggregator invites their most trusted delivery partners to use these kitchens. These kitchens, however, are not only open to seasoned players, but also to newcomers. The aggregator’s online ordering system, menu intelligence, and delivery fleet assist the associated restaurateurs.
Standalone or single brand cloud kitchens:
This is the purest cloud kitchen business model available. A single brand, a single kitchen, and no physical location. This is a restaurant without any seating or a physical location. This restaurant exists only in digital form and is self-contained. They usually have a modest menu and focus on a specific subject.
Multi-brand cloud kitchens:
For a company that is wanting to expand, this model is pure serendipity. The restaurant operators can use this cloud kitchen business model to run many corporate brands in a vast kitchen infrastructure while using the same inputs. These brands cater to a variety of customer groups, the majority of which are divided by cuisine. Because of their large size and diversification, they have many listings on aggregators, which increases their audience reach.
How To Start A Cloud Kitchen
Due to the low investment and risk, as well as the ability to duplicate and scale the business, cloud gastronomy is one of the most profitable business forms.
When compared to traditional restaurants, opening a cloud kitchen takes a third of the time and resources because you won’t need a storefront in a prominent location or wait for customers.
Things To Consider Before Starting A Cloud Kitchen:
Location & Property
A typical dining/dining room and a cloud kitchen are distinguished by their location and structure. A high-floor and high-end property location are not required for a cloud kitchen. Instead, because the House is not a façade, it can be readily put in an area of 250-300 square feet. Because the decor and furnishings are no longer required, the cost of opening a cloud kitchen is greatly reduced.
The cloud kitchen is at an inaccessible location, yet it has a strong client demand, particularly in one kitchen. In residential areas, market settings, and unused parking lots, cloud food is served. A shared cooking space, on the other hand, can be used to save money on the original purchase.
To open a cloud kitchen, you’ll need the appropriate licenses and certifications for a variety of reasons. For starters, introducing licenses would keep you out of legal trouble.
Second, the fact that customers cannot inspect their own hygiene, food safety, or preparation at the outlet provides them a sense of contentment that correct licenses are in place. You can promote these on your website and in marketing initiatives to ensure that the food you create is of good quality.
Kitchen Equipments & Packaging
The equipment you’ll need is entirely dependent on the type of kitchen you’ll be serving. Oven and stove, fridge, countertops, knives, and other basic kitchen equipment are required to establish a cloud kitchen.
Packaging is an important aspect of a food supply company’s operation. Regardless of how excellent your cuisine is, if it is not handled properly, it will spoil your entire client experience and give your brand a poor name. The type of food you offer is also determined by the container. Plastic containers, cartons, spoons, and other items are required for proper food packaging.
Because there is no front of the house, you don’t need a lot of people in your cloud kitchen. Food may be produced and delivered quickly in a cloud kitchen for four to five people. If you have many companies working in the same kitchen, the same chef can prepare cuisine for all of them. It’s best to start with a small crew, and as your order volume grows, you can hire more people.
Technological Stack Needed For A Cloud Kitchen
Because a cloud kitchen often generates orders through online food aggregators, websites, and mobile apps, technology is critical to its success. For accepting online orders and assisting operations, a cloud kitchen requires an integrated online restaurant ordering system.
The technological prerequisites of a cloud kitchen enterprise are detailed here.
Centralized Accepting Orders From Multiple Online Aggregators
The most important technological necessity for a cloud kitchen is a POS system that centrally collects orders from numerous online food aggregators like Swiggy and Zomato. Manually entering orders into the POS at the end of the day is a major pain, especially if your cloud kitchen is featured on various online food ordering platforms.
An integrated point-of-sale system accepts orders from a variety of sources and keeps track of orders received on each platform. The reports may then be analyzed to determine which platform is the most effective for you and plans to enhance sales can be devised appropriately.
Online Ordering Through Website And/Or Mobile App
While collaborating with online food aggregators is necessary, you must also have your own restaurant website or mobile app to collect orders. Third-party internet food aggregators demand a high margin per order, ranging from 12-18 percent for accepting online orders to 18-25 percent when delivery is included*. This figure can eat into your profitability, which is why having a natural source of online orders is critical.
So that your clients can order food online with ease, you should have an online ordering-enabled restaurant website and mobile app that is user-friendly and SEO optimized.
Call Center Panel For Receiving Telephonic Orders
If your cloud kitchen business receives a high volume of telephonic meal orders, an integrated Call Center panel is required. Because orders are instantly fed into the POS, a POS integrated Call Center panel will help you streamline all your telephonic orders if you have several brands and outlets.
You’ll also be able to see the customer’s information and order history, eliminating the need to repeatedly inquire for the customer’s address and other information.
Integrated Kitchen Display System
If you wish to deliver the order in under 30 minutes, the order preparation time for a cloud kitchen is normally approximately 10-12 minutes. An integrated Kitchen Display System is a godsend in the fast-paced cloud kitchen for reducing order preparation time.
The order is instantly updated in the KDS as soon as it is received. The kitchen staff may see the order specifics as well as the pick-up time for the order and prepare it accordingly.
This not only smooths up the operation, but it also allows you to spot any latencies and improve the preparation time.
Integrated Delivery System For Food Delivery
Having your food delivered through an in-house delivery system will make your life much easier. You wouldn’t have to pay the additional commission to third-party logistics, and you’d have far more control over your delivery services.
You can assign your orders to a delivery executive based on their location and availability using a food-delivery system. You’ll also be able to follow the status of your orders and send automated SMS updates to your consumers.
Robust Inventory Management System For Stock Management And Wastage Control
Inventory control is critical in any food business, and it’s no different in a cloud kitchen. A sophisticated inventory management system would allow you to keep track of your daily stock consumption and, if necessary, prompt you to order more stock. It also aids in the reduction of food waste and the control of food expenses.
Technology is essential to the seamless operation of a cloud kitchen business as well as operational effectiveness.