Cloud kitchens go by many names, dark kitchens, virtual restaurants, ghost kitchens and satellite restaurants. We’ll be calling them cloud kitchens on our blog for comprehension’s sake. They are a rapidly expanding segment, further helped by the pandemic, due to the increasing demand for no-dine-in delivery restaurants.
Cloud kitchens are a unique way of running your restaurant business. For starters, they require fewer investments and fees compared to traditional restaurant businesses. The global market for cloud kitchens was estimated to be at $700 million in 2018 and is expected to rise to $2.3 billion by 2025. It’s a business that’s been steadily increasing in demand since 2020.
So if you want to start a cloud kitchen business in India, then keep reading.
How To Start And Grow My Cloud Kitchen Business In India?
Cloud kitchens have a huge presence in India. Most people have gotten used to ordering their food online through food delivery apps like Swiggy or Zomato. Customers place their orders through the site and have their food delivered to them.
In 2019, there were about 5000 cloud kitchens in India. Post Pandemic that number exploded to a large extent. It’s becoming increasingly commonplace for people to opt for cloud kitchens rather than dine-in restaurants for their meal preferences.
Here are the main ways you as an entrepreneur can start and grow your cloud kitchen business in India.
1. Decide On the Type of Cloud Kitchen Business You Want To Start
There are mainly 4 types of cloud kitchen businesses.
· Stand-Alone Cloud Kitchens
This is a small-scale cloud kitchen. They have a limited menu and a small team of 4 to 5 people. You’d need an average area of 300 sq. ft for a stand-alone cloud kitchen.
· Virtual Restaurants
These can be operated within a restaurant. Like restaurants that are listed on food app delivery services. They use the kitchen restaurants as virtual kitchens for food delivery for their customers.
· Multi-Band Cloud Kitchens
These are made according to the spending habits of the customers within a specific area or region.
· Hybrid Cloud Kitchen
This is a combination of a take-out restaurant and a cloud kitchen.
2. Location
Conventional restaurants would need you to invest quite a lot in their physical location. Cloud kitchens don’t have this requirement. You can start your cloud kitchen business anywhere so long as you have the right equipment and staff available.
Your business only needs to be able to fulfil the online orders of your customers. Having this advantage also allows you to target a wider area or region.
3. Licences and Permits You Need
These are the licences you need within the first month of setting up your cloud kitchen.
- FSSAI licence
- GST Registration
- Municipal health trade licence
- Fire licences
If you’re setting up any food-related business, getting all your licences is especially important. This is something you absolutely cannot ignore.
4. Set up Your Online Management System
Once you’ve decided on your type of cloud kitchen business and location, you need to decide on how you will accept customer orders. You can partner with existing platforms like Swiggy, Zomato, Food panda, etc. that accept orders on your behalf. These businesses also charge a commission for their services.
Or, you can set up your own website where you can accept and track customer orders. Cloud kitchens rely solely on their online presence to attract customers. You can hire website developers to set up your cloud kitchen website and have it up and running in no time.
5. Getting Equipment and Hiring Staff for Your Cloud Kitchen Business
If you spend wisely you can get the proper equipment and furniture required for your cloud kitchen business. Spending on new equipment like chimneys, new refrigerators, deep freezers, etc. and saving by buying older equipment like tables, racks, cabinets, etc. is one way to curb spending a lot.
For an online kitchen, you need at least a minimum of five employees. The secret behind a successful restaurant is its kitchen staff. So make sure to spend a lot of time when hiring and looking for employees.
How to Franchise My Cloud Kitchen Business in India?
Now that your cloud kitchen business has been operational for quite some time, it’s time to start expanding. A good way to do this is by franchising. The most common way to franchise your cloud kitchen business is by pitching your business to other restaurants.
Business Model
A cloud kitchen has no physical outlets. By offering your services to other businesses, both you and the other party can benefit from it. Cloud kitchens by nature have lower operational costs, a streamlined, standard process and are easy to expand.
So to make your cloud kitchen business a success, your main focus here would be to nail your branding.
Advertise Well
This is your single source for getting orders. Unlike traditional restaurant businesses and franchises, cloud kitchens are accessible only through online channels. Since you won’t be investing too much in location or maintenance costs, you can go all in on your marketing.
Online marketing is a great approach. Registering your business on listing review sites is one way to boost your visibility online. Great customer reviews of your services will help your cloud kitchen the most if you are looking to attract more customers. This increases the brand value of your business and inspires more customer loyalty.
Placing ads on social media sites is another approach. This increases your brand recognition and awareness among people.
Using a combination of different online marketing strategies and finding a good balance between all of them is your main goal here.
Conclusion
The present younger population and the rising disposable income offer the perfect market for cloud kitchens to grow. There is an increasing demand for cloud kitchen services right now, so it’s the perfect time for you to start one.
If you want to start and franchise your cloud kitchen business in India, then seeking professional help is a great idea. This will give you a competitive edge over your competitors and allow your business to succeed.
Contact sparkle★minds today to get started.
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