Dining popularity has undergone a tremendous change after COVID-19. Cloud kitchen is the latest trend among restaurateurs. They benefit people who want hot and delicious food right at their doorstep.
The article discusses regarding cloud kitchen and its benefits. So, keep reading this article to learn how to start such a kitchen.
What Is Cloud Kitchen?
Technology has changed the way we live and work, and it has even changed the way we experience food.
Imagine you want to start a venture called Takeaway and Eat. Setting up a brick-and-mortar store to provide food to people involves high rents, staff salaries, furniture, and other costs.
You must provide a separate and ample space so that customers can sit comfortably. You need to take the customers’ orders and then serve food. Starting a restaurant business involves spending a lot of money.
But now, technology has changed. The concept of this kitchen is dominating today. It is a virtual or ghost kitchen. Here, food is prepared and delivered. There is no need to set up a physical store or dine-in area. You can set up a cloud kitchen in busy areas or near a college to increase the frequency of food orders. A third-party service usually helps deliver the food.
You can operate this kitchen in a 10-foot by 15-foot room. Customers can place an order through food delivery apps. You must prepare the food, package it properly, and then deliver it to the customer’s doorstep. This concept helps your business reach a wider audience without the involvement of overhead costs.
How Can I Start A Cloud Kitchen?
Are you interested in starting a cloud kitchen? If yes, then it’s an excellent way to earn money by delivering hot and delicious food to the customers.
However, you must follow a few steps below to start such a kitchen.
1. Research Your Business
First, you need to research the business properly. It includes market research, customer needs, and competitors. You also have to analyze your finances, and then you can set up a budget to start a cloud kitchen.
This kitchen industry is growing rapidly. Proper tactics are needed to establish a brand name, grow quickly, and succeed.
2. Types Of Cloud Kitchen
There are three main types of cloud kitchens.
- Stand Alone Cloud Kitchen : Starting a stand-alone cloud kitchen is better if you have a low budget. You can set up this kitchen in a 300-square-foot area. You can operate it with only with two to five people.
- Multi Brand Cloud Kitchen : Setting up this kitchen helps to reduce operational costs. You can combine several restaurants or brands under one roof. They will share the cooking facilities and assist in offering various types of food to the customers.
- Virtual Restaurants : You can set up a virtual restaurant within an existing restaurant. But your food items will only be visible online, i.e. through apps and websites.
Each type has its own pros and cons. You must weigh them and finally decide on the kind of money you need to start earning.
3. Find A Location
You don’t need a large and visible space for setting up a cloud kitchen. You can run this business only by having a 300-square-foot area.
However, you need to consider a few factors, like electricity and availability of running water, while setting up such kitchen.
The kitchen don’t need to be aesthetically pleasing. You don’t even need to improve the infrastructure of the cooking space. This is because only chefs or staff will be frequently visiting this space.
3. Register Your Business
Registering your business before you begin ensures that all operations will be carried out without legal problems. It also enables you to keep track of taxes or receive funds.
4. Apply For Licences
To start a cloud kitchen, you must obtain various licenses. If you run such kitchen in the USA, you must obtain some of the licenses listed below.
- Business Licence
- Zoning permit
- Fire license
- Food handler permit
- Transportation limit
5. Necessary Equipment And Packaging
The equipment of a cloud kitchen usually varies depending on the type of food you prepare. However, various necessary equipment are most common in this business. These include refrigerators, stoves, knives, microwaves, and more.
You must also purchase good-quality ingredients from a reliable vendor. I recommend buying in bulk to save costs.
Good packaging is even essential for running this business effectively. If you are supplying food to customers without good packaging, then they will have a negative impression of your business.
6. Hire Chefs
Cloud kitchens don’t require hiring many chefs and staff. You must hire only one or two professional staff to prepare the food. Thus, it helps you to save money.
7. Delivery
You need a good delivery man to deliver the food to the customers. You can even deliver the food to the customers. But if this is impossible, you can count on a food delivery app. The customers will place their orders through the app, which will help make the food delivery process smoother.
8. Marketing
Marketing is an essential pillar of your cloud kitchen business. The process of placing an order, viewing menus, and various other things is only online, so you need to promote your business mainly online.
Fortunately, the number of online users is increasing daily. You must adopt correct marketing strategies to establish your brand online and attract more orders.
Advantages Of Cloud Kitchen
You will set up a cloud kitchen, so you should be aware of its advantages. I have listed them below.
1. Low Costs
Renting land to open a restaurant costs a lot. However, a physical store or dining area is required whenever you set up a cloud kitchen. You even don’t need to hire any staff or servers.
So, setting up a such kitchen minimizes renting, operational, and labour costs.
2. Time Frame
A traditional kitchen may take a few months to a year to open. But cloud kitchens can start within a few days or weeks.
3. Focus On Food
Traditional kitchens focus on food and the ambiance of the dining area. But whenever you set up such a kitchen, you must focus only on food preparation and delivery. You can be a bit creative in preparing delicious dishes.
4. Reach Large Audience
You can advertise your cloud kitchen on various social media platforms and delivery applications. This helps strengthen your brand and even reaches a large audience.
Conclusion
Cloud or ghost kitchen is a business you can start even in 300 square feet. You dont need to hire more staff or serve for operation. You must focus only on preparing good quality food and delivering it to the customer’s doorstep.
However, with Cloud Kitchen, you cannot know whether the customer is happy or unhappy with the food delivered. You cannot provide food to customers who stay distant from your kitchen. It may be difficult for you to set up your brand on social media.
So, you need to weigh the pros and cons and then start this business
