Cloud Kitchens are among the most popular business models for food and beverage entrepreneurs this year. The pandemic saw a massive increase in online food delivery business volume especially with the closing of restaurants. Opening a cloud kitchen makes a lot of sense particularly since popular online delivery businesses like Zomato and Swiggy are highly trusted. If you are not sure what cloud kitchens do to make them so successful, here are 5 things you should know about them.
5 Things That Make Cloud Kitchens Very Successful
1. Prompt Servicing
With the whole world connected better than ever, clients want to go for the service which gives them the fastest service. Since online food delivery apps have a better network than any single restaurant, they can deliver quality service much more quickly. Cloud kitchens can take advantage of this by syncing in on their app and getting orders from there. This also takes away the burden of timely delivery of the cloud kitchen owner which also reduces overall establishment costs.
Since these businesses also have a strong market reputation, their customer servicing is also high-standard. This ensures clients have their delivery issues handled effectively. Further, the franchise owners can collaborate with the company to have custom delivery arrangements for even more prompt service.
Collaborating with online food delivery businesses also enables your business to take advantage of a rather robust delivery system. For the most part, these companies focus on catering to a wide area. This is usually an entire city or may even by a zonal state-wide or national network.
So, if and when your cloud kitchen gets expansion opportunities, you can take advantage of the online delivery company’s brand. This affects all kinds of expansions including new outlets, expanded menus, and everything else. Since all of this comes with the same prompt service as before, you can expect to take full benefit from your reputation as well.
2. Increased Hygiene
One of the biggest problems with any kind of food outlet including restaurants is that there are a lot of people who have access. So, the chances of infection and tampering a much higher. This is a particular problem in a post-COVID era and clients are far more likely to order from an online app.
Of course, when they order from Zomato or Swiggy, they get the assurance of proper hygiene and this adds to the trust factor immensely. Plus, Zomato rates restaurant partners according to their hygiene parameters to get more orders for better hygiene makes for a lot more business. Further, online reviews can bolster restaurant rankings and this attracts even more business from those apps.
For some cloud kitchens, getting up to sanitation standards accepted and relied on by clients may be a bit difficult. This is particularly true for new franchises which may not have a safety rating known in the market. Most online food delivery businesses have standards to maintain and theirs are more marketable by default.
So, instead of setting up restaurants that may or may not have the ideal food and health safety standards, cloud kitchens can serve as a better alternative. This is why cloud kitchens are often more reliable for food and health safety standards than regular restaurants.
3. Cost-Effectiveness
Opening up a restaurant is an expensive process. You will have to deal with a lot of risks to keep it running. In light of COVID-19 and the general global environment, many restaurateurs are exploring alternative methods of making their businesses work. With cloud kitchen businesses, investors save a ton of money on the entire venture.
You can simply reserve a commercial space in your relevant service area and link up with the online food delivery company. Once that is done, all you need to focus on is keeping the kitchen running. If you opt for a FOCO model cloud kitchen then you can have the franchise owner or company do all the work. This makes getting business going even easier and ensures consistent profits.
As with all businesses with a limited budget, working a cloud kitchen to get high profits is easy. This is simply because the FOCO cloud kitchen model combines professional expertise and multiple investors. This provides the best cost-to-benefit scenario for any cloud kitchen setup.
4. Easy to Expand
Expanding your business to capitalize on emergent business opportunities is very easy when you have a smart cloud kitchen. Since these businesses do not require any large space which needs to pay out consistently, their budget is very small. So, when it comes to exploring expansion opportunities, they can offer many avenues.
From kitchen floor size to menu items to more outlets or expanding the service area, there are many options. Investors or franchise operators can choose to expand them as needed. This variety of options also makes investing in the right way a more efficient process. When it gets to the point where your business has multiple ways to expand, you can choose the ones which balance the best between investment and potential profit.
Further, expansion potential depends a lot on how quickly you can grow into your new commercial space. For most businesses restaurants, brand marketing, and promotion lead to grand openings. However, not every restaurant is going to pay for its area coverage through regular business. So, expansion becomes even more problematic.
However, since cloud kitchens have a very limited space already, their expansion costs much less. They are also easy to relocate. So, if you are servicing specific areas much more, moving to that local region or opening up a new place is also easy. These are some advantages only cloud kitchens can offer.
5. High Profitability
Profitability is a factor for every business and large investments do not always produce more profit. In fact, for the restaurant business, a no-loss working profit is often considered a win. This is because there are other promotional and related revenue options available.
However, cloud kitchens do not require heavy investment to turn a sizeable profit. The entire business model is to optimize the whole process for maximum net gains. Since the investment is low, it is easy to manage especially when handled by professionals and experts.
That is why FOCO cloud kitchen models produce a lot of profit for a relatively modest budget. This high profitability allows for more versatile, rewarding, and scalable business practices. This is the primary reason why restaurants are not as readily scalable in profit but smartly managed businesses can.
How Should You Invest in FOCO Cloud Kitchen Franchise?
The Rolling Plate is one of the best cloud kitchen franchises in India. It offers high-profit margins and consistent returns thanks to its FOCO franchise model. This means the company does the day-to-day running of the franchise while you make a one-time investment. If you are looking to make a sound investment for yourself this year, then The Rolling Plate is the best place to do so. Contact TRP now and get started on the best investment options in the Indian FnB industry right now.
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