Cloud Kitchen is the largest food chain ever. It has become so popular that every social media influencer, from food vlogger to food blogger, is promoting Cloud Kitchen. It allows them to increase the reach and reduce their per-head cost itself! To start a cloud kitchen, you need to know about every detail and step of the kitchen! So, in this comprehensive article, we will explain the steps you need to follow before starting Cloud Kitchen!
How to Start Cloud Kitchen! (Step By Step Guide)
The cloud kitchen industry’s high profit margins attract many players, making it the first choice for small business ideas. The ecosystem is maintained by the internet and smartphone penetration and the growth of online food collectors. So, without further ado, let’s dive in!
Step 1. Know your customers
Demographics play a significant role in the achievement of a cloud kitchen. Before you start a business cloud kitchen, you must know your customers and to whom you want to serve. For example, the requirements of a family are wholly different from those of a young, gym-going twenty-something. Families require a well-adjusted meal, while gym-goers prefer protein-rich food. So, you should know your business before you develop your food concept, menu offerings, and marketing tactics.
Step 2. Choose a concept
How do you choose the correct notion for your cloud kitchen? The first step is to find out what your customers are looking for. One way to do it is to go online and then google. For example, if you are targeting health-conscious people, you must find out what food they prefer. To find out about the preferred cuisine of your target audience, you can go to diverse forums like Facebook. You can check the dietary preferences of diverse groups there.
Step 3. Gain Experience
Running a cloud kitchen strains knowledge in a wide variety of fields. Apart from the rudimentary cooking knowledge, knowing about accounting, marketing, and finding raw materials will be good. A degree in hotel management, besides some work experience in the hospitality sector, will aid you immensely.
Step 4. Study your competition
See which famous dishes your intrants are serving and what they are not. Also, which items are in high demand and are selling well? For example, if you see that gluten-free doughnuts are life-picked up by many customers, you know it is a gifted product.
Step 5. Costs
Increasing a restaurant is easier than you think. With commercial kitchens optimized for delivery, you can launch a new-fangled location in less than a month. The cost is 40 to 50% less than a brick-and-mortar cafeteria. The real estate costs and labour incidentals will be far less.
You can bear the initial start-up costs as of your savings. If you don’t have sufficient funds, you can ask your household or friends for help. Another option is to pay your local bank for a business loan.
Step 6. Location
You need not trace your cloud kitchen in a prominent location. An industrial zone or a back alley in a neighborhood will work just fine. A low fee will translate into a lower brokerage and CAPEX cost. 500 square feet planetary will suit your requirements just fine. Make sure to have a driver parking area with a seamless delivery system.
Step 7. Get a license
You must get an FSSAI license to order how your food is stored, cooked, and brought. The license period is valid from one to five years and must be transformed periodically. You can mention the FSSAI number on your packing to inspire customer confidence.
Step 8. Equipment
Most of your initial reserves will be spent on equipping your cloud kitchen. The list includes countless ovens, burners, utensils, plumbing, etc. One option is to rent an operational cloud kitchen tailored with essential equipment to customize it per your requirements.
Step 9. Quality of food
You have to keep the excellence of your food very high, or else it will eat into your status. Hire a good chef who is an expert in your chosen cuisine. Use fresh ingredients and try to foundation them locally.
Step 10. Packaging
The only point of contact between you and your customers is the wrapping. You can develop your brand through imaginative packaging. You can pack the meals in biodegradable wrapping instead of plastic to reduce your carbon footprint. The food should be sealed correctly to avoid contamination.
Step 11. Pandemic Precautions
While safety and hygiene have always been vital in the food industry, you should now take an extra position in this if you want your business to thrive. You must check the temperature daily for all kitchen and transfer staff. The staff should wash their hands regularly and sanitize the kitchen frequently.
Step 12. Technology
You can track your instructions without a hitch using technology. When a customer chairs an order through an app, you can view that on your mobile, laptop, or tablet. You can rent a chef to do the cooking or do it yourself with some help.
Step 13. Delivery
You have to hire a decent driver. Delivering food accurately and promptly means a lot of happy customers. You can also use online food transfer platforms like Swiggy and Zomato to facilitate logistics. Launching your food trucks with popular substances like chicken pizza or biryani is an added option.
Conclusion
Cloud kitchens can be in a warehouse through numerous workstations, stainless steel tables, and hood vents. They can have their online ordering website or app or take orders through various food delivery platforms. Customers can order their finished mobile and have the food delivered to their homes or headquarters.
FAQs
How much money do I need to start a cloud kitchen?
To start a cloud kitchen franchise unit, you want approximately Rs 30 lakhs. The rent for an area of 150 to 300 sq ft is Rs 45,000 to 1 lakh, which can be summarised as Rs 7 lakh if you lease it annually. The cost of equipment is anywhere between Rs 3.5–4 lakh.
Is Cloud Kitchen profitable?
Cloud kitchens offer excellent latent for profitability, and their operations can be scaled much more quickly than restaurants offering dine-in services. The average cloud kitchen profit margin is 20%-25%. However, the profits from a cloud kitchen venture depend on the number of orders you process daily.
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