During Corona, ordering food online was the most popular option over dining out. At this time, the cloud kitchen concept entered the restaurant industry and revolutionized it. According to reports, the Cloud kitchen idea, which is regarded as the better approach to operate a restaurant, is expanding at the highest CAGR (Compound Annual Growth Rate) among the other restaurant sector segments.
But, there is a swarm of questions flash across your mind, before investing in Cloud Kitchen that, What is a Cloud Kitchen? Why should I invest in Cloud Kitchen? Let’s start from the beginning and learn more about the concept of Cloud Kitchen.
The term “cloud kitchen,” sometimes known as a “Ghost Kitchen” or “virtual kitchen,” refers to a commercial space primarily utilised for only food delivery. It is not a full-fledged offline restaurant where you can dine. It operates online, to put it simply, you directly take orders and deliver them to consumers.
It is a new concept as well as a novel innovation in the food industry in India, because from our childhood we have seen offline restaurants, where we go and dine-in but the concept of the cloud kitchen is completely different. Here the customer’s order is received, food is prepared and delivered at their doorstep. Interesting right? There is nothing to worry about electricity costs, employee salaries, or other expenses.
- There are numerous benefits related to Cloud Kitchen business:
- Putting an end to expensive rentals
You cannot put up with an expensive renting space or let bank loans burden you. Instead, rent a cloud kitchen. You don’t have to pay for the staff’s salary or electricity or any other bills. Investing in Cloud kitchen means saying goodbye to renting expensive places. You will be surprised at how much less expensive renting a commercial kitchen is compared to operating a restaurant. That’s why a growing number of local, regional, and national restaurant brands are becoming interested in this concept.
- Productive and highly profitable Business
Invest only a small amount, and you can start your own cloud kitchen business. It doesn’t employ much kitchen personnel and delivery staff which dramatically reduces the labour costs by eliminating the requirement for staff, and you can utilise that money in exploring more about the cloud kitchen business.
Developing and launching a real restaurant requires a number of pricey components, such as dinnerware, décor, and branded signage, which cloud kitchens do not require. If you already have a strong brand, you can use social media to advertise your kitchen and your services.
- Easy to Expand
Wishing to grow your offline restaurant? But quite challenging, because it requires a significant investment. In the cloud kitchen model, much of the expenses involved in running a regular restaurant are minimised with it.
Essentially, these online restaurants have a small scale budget because they don’t need a vast workspace to operate. Therefore, they are able to offer a wide range of choices when it comes to exploring expansion opportunities. You can open your cloud kitchen’s franchise anywhere because the work requires receiving and delivering the orders. So, it becomes convenient to open a franchise anywhere according to the need.
- Boost Your Profits
Since there is less staff and kitchen equipment and no furnishing overheads or decor costs, it turns out to be beneficial for everyone. This gives restaurant owners the freedom to experiment, cut costs, and quickly reach operating breakeven, turning their establishment into a successful business. So, if your business fails, you can easily shut it down because investing in a cloud kitchen is profitable because it is primarily a low-risk business.
- A growing trend: home delivery
Life is becoming increasingly hectic in this modern era. Just consider how people can have time for other things if they don’t have time for themselves. Home delivery saves the day at this point because people are exhausted from a long day at work and don’t want to go out to buy food.
People are increasingly turning to food delivery services at the end of long days at work, rather than bringing lunch. As a result, the demand for cloud kitchens is increasing, and delivery food services are becoming more prevalent. And many cloud kitchen owners use marketing campaigns on third- party platforms to connect to the right set of the audience. This increases your visibility and sales both and boost your online restaurant to make it a known brand.
Opening a cloud kitchen seems easy but it comes with some limitations. Like the whole business is online, So with limited client involvement, it may struggle to establish their brand initially. Cloud kitchens compete only in a crowded online market since they have no physical presence. Because they are ordering through a third-party app with numerous restaurants featured, they are less likely to become regulars and won’t be able to connect with a certain restaurant brand. The concept of the cloud kitchen, or to put it simply, an online restaurant, is becoming more widely known
among people in this digital age, with people becoming completely dependent on smartphones and the development of mobile-friendly solutions. With the advancement of digitalization, we can say that the cloud kitchen is the future of the food industry, as it offers business opportunities to those who want to start a food business on a small scale.