Cloud Kitchen Business model explanation and tips

Now the internet plays a vital role in our daily chores. So, in this tech-inclusive society, everyone has a deep attachment to the internet.

In this busy world, everyone prefers to get their work done at a rapid pace. People now cultivating the habit of online deliveries. Now, the majority of people orders grocery online.

From grocery to essential commodity of household is getting order via online. Now online delivery apps are on demand. Even now people prefer booking medicines online.

Ultimately, people’s choices and lifestyles are transforming towards online. At present people orders food online rather than visiting nearby restaurants.

Is anyone have thought to start a traditional hotel business? Then they have to think twice before starting.

 Because traditional restaurants’ business model takes massive capital and workforce. So, in this online Duniya transformation, the business model is essential.

Now, one can start a hotel business with low investment. There is the compulsion to start a hotel business in a specific area. Even if you start a restaurant business in the corner of the area still you can make a great margin of profits. 

Cloud kitchen business model can help you to start your foody business in this era. It is the best and latest restaurant, business model.

Cloud Kitchen business model

Cloud Kitchen is a type of restaurant model where it takes online food deliveries. In this model, there will no dine-in facility. Instead, it gives takeaways.

Virtual kitchens or dark kitchens or cloud kitchen business model is on hight demand. Because it does not require more employees like a manager, waiter, and supplier. 

This kind of kitchen does not want to spend on customer experience. Instead, cloud kitchens have to focus on their taste and speedy delivery.

The online food delivery space is booming in India at a rapid pace. This market has reached nearly USD 4 billion market value in 2020. 

Startups focusing on online food delivery space is getting million of orders. Zomato online food delivery and aggregator nearly get 1.25 million of orde per day. Whereas, its rival Swiggy receives 1.6 million per day.

Eventually, cloud kitchen business is best suitable in this tech inclusive space. In a traditional restaurants business, one gets only 15 to 30 % of the profit margin. But in the cloud kitchen model, one can easily get up to a 40% profit margin.

How to start Cloud kitchen Business 

There are some essential steps to start a cloud Kitchen Business in India. Here are some steps to start

Outlets

To start Cloud Kitchen, there is not a requirement for luxurious buildings. Even there is no compulsion to start in crowd hub places or any in malls.

Instead, one starts the business with low investment and with an affordable place. You can start in any corner of the area but it should be not in remote places. Then it would be tedious for speedy food deliveries.

Besides, you have to keep the place with higher standards of hygiene level and sanitation.

Also Read: Successful business model for ladies

 Required Licenses for Cloud Kitchen Business model

To start any business, it is mandatory to seek relative licenses with respective departments. There are some important licenses to start Cloud Kitchen Business

FSSAI

Firstly, you should get approval from the FSSAI( Food Safety and Standards Authority Of India) department.

 You can register online and get approval by applying on the official website. It is mandatory of the business whose annual turnover is less than 12 lakhs. Then you will get confirmation within 7 days.

TIN Number

Taxpayer Identification Number is the number liable to any trader who is participating in paying the tax. So, it is mandatory to get an 11 digit transaction number. One can apply for the TIN on the BIR eReg website.

GST Registration Number

Now as you know, every business is inclusive of GST. Every transaction should be under the GST guidelines. So, it is legitimate to seek GST Registration Number. You can visit the official website to get 15 characters of GST number.

Fire License

Safety measures are on top priority in any kind of business. In Cloud, Kitchens fire is one of the main and dangerous entities. 

So, it is essential to prevent any fire-related accidents from some measures.

Eventually, one has to get Fire License from the Fire service department that there will be no chances of fire accidents. You can get the license from the local government body in your respective area.

Municipal Health License

Food industry businesses are directly affecting humans health. So, it is mandatory to get Health License for the respective department to ensure that top standards of Hygiene will be maintained.

These are some of the essential licenses that Cloud kitchen businesses are liable for holdings. 

You can contact some of the agencies(https://www.legalwiz.in/) to get the work done. So that the work will be done quickly and you start the business at the earliest.

Groceries

The success of Cloud kitchen solely depends on the taste you provide. So, the quality of groceries is very essential. Cloud Kitchen business mostly outsources the Groceries from the nearby vendor from bulk.

To get the best prices on the items you can download the Udaan app. It is a B2B platform where you will get quality items at affordable prices. Event there is no middle man or dealers to levy exorbitant price. 

Kitchen equipment

Major investment in cloud kitchens is in kitchen equipment. There should be a lot of best and latest equipment to fulfill the needs. Primary kitchen equipment is burners, fryers, freezers and refrigerators, Mixers, Slicers, and ventilations.

Best websites to buy kitchen equipment online

1. IndiaMART
2. Mukundfoods
3. Flipkart
4. Amazon
5. Snapdeal

Marketing strategies for cloud kitchen Business model

Cloud kitchens marketing is essential to increase your sales. There are many ways to market your kitchens

• Listing your cloud kitchen in food aggregator partners

Now the majority of online food delivery comes from third-party food aggregators. 

Even integrating with the online food delivery company you increase your sales and deliveries at a quick pace. So, that you can retain and acquire new customers.

Swiggy and Zomato are top food aggregators in India.

• SMS and Email Marketing

These two marketing techniques are in demand and profitable too. So, that you can target specific customers. One can seek help from any agency to promote their business via SMS and email marketing.

• Facebook and Instagram ads

At present, social media is helping businesses to increase their sales. Social media are customizing the ads according to the user behavior.

 For example, if a user looking for new buy groceries then social media apps suggest Groffers, Jiomart, Bigbasket ads frequently.

So, running Facebook and Instagram ads will surely increase your sales. But you have pas certain fees for the ads.

Even Flex and pamphlets are also one of the marketing strategies. But it won’t much effective but your market at a low cost.

Tips for Cloud Kitchen Business model

Brand name

Your company name plays a significant role to grab people’s attention. Cloud Kitchen’s business model brand name makes a huge difference.

Keep it simple and convey the proper meaning. Your brand name should portray your specialty. Here are some examples of the best cloud kitchen brands in India

1. Birayani By Kila famous for varities of birayanies
2. Sweet Truth is known for its delicious desserts.
3. Oven Story Pizza is well-known for serving the best pizza’s

Niche

One should have a clear and mainstream idea to cater to the audience. To start a cloud kitchen one should have in-depth knowledge of good specific types of food items like pizza, Biryani, Kebab, Desserts, and many more.

Your cloud kitchen should serve and concentrate on one specific food item. Rather than serving all and then you can’t have differentiated yourself.

Research

Before starting any business research should be done. Then you can understand the existing problem in the space.

If your surrounding doesn’t have the best biryanis then you can start. Then you can get more sales and demand from the people. Without research, if you cater normal food items then it will be difficult to survive.

Ways to research to start a cloud kitchen business

1. Visit restaurants and analysis every dishes
2. Then approach the locals about the favorites food type
3. Make a deep survey of the type of restaurants that exists
4. Make a blueprint and ask for public feedback

Direct orders

Many cloud kitchens will suffer a lot due to low marginal profits. Even though you tie up with online food aggregators Swiggy and Zomato the profits margins are fewer.

So, it is beneficial to get direct orders from the people. Then you can get lumpsum profits at the end. If you want to get direct order should have your own app and website. Also, you can cater to the functions like anniversaries, birthday parties and many more.

Now creating app and websites is way too easier. There are many noncoding platforms like

1. WordPress
2. Wix
3. zyro
4. Square space

You can only make your website or can hire freelancers from the websites like Fiverr, Upwork, Toptal, Flexjobes, and many more.

Menu Card

Many cloud Kitchen business makes shabby menu card designs. Even they will fill many food items and eventually confuses the people. 

Instead of too many food items, simple and fewer items will get more benefits. More choices are like zero benefits.

So. designs the menu card as simple as possible with fewer food items.

Top 10 Indian cloud Kitchen Business Model

Here are some of the best cloud kitchen companies in India

1. Faasos
2. Behrouz
3. LunchBox
4. Oven Story
5. Mandarin Oak
6. Sweet Truth
7. Kettle and Kegs
8. Saly everyday
9. The Good Bowl
10. Navarasam

Ultimately, Cloud kitchen is going to be one of the profitable business models. Each factor should be taken care of and follow protocols. Then you can build a profitable cloud kitchen, business model.