The growth in an online food ordering and delivery system has given a rise to the cloud kitchen. People orders through digital platforms like Uber Eats, Just Eat, Swiggy, and so on. Many of you might have ordered from a cloud kitchen without even knowing it. Surprised? We have mentioned all the things you need to know before starting a cloud kitchen in this blog.
What is Cloud Kitchen?
Cloud Kitchen is also known as Dark Kitchen, Virtual Kitchen, Ghost Kitchen. People may use different names but the concept remains the same. Cloud Kitchens do not have a physical location and offer meals only through digital ordering platforms. They sell food only through delivery. The increasing consumer demand for deliveries has made cloud kitchens popular in the restaurant industry. Now people who love cooking and wants to gain money has opened dark kitchens in great number.
Cloud kitchens have different business models. One model which is an aggregator owned that charges a commission for orders delivered from the co-working kitchens they partner. Whereas other outsources everything from call operations, preparation, and delivery. Later digital platform picks up food and makes the delivery. You can use these models with a single brand, multiple brands with multiple outlets.
Who can open a Cloud Kitchen?
Food Truck Operators
If you are looking for the growth of the business, opening a cloud kitchen is a good option as your business will be online and you can reach a larger audience.
Home-cooked chefs
With low investment and targeting your preferred delivery areas, a cloud kitchen can help you to reach your food to the customers.
Food Entrepreneurs
If you have a unique idea and are looking for a profitable low-cost business idea, then cloud kitchens are the best idea for you. The owner can open a multi-restaurant food ordering and delivery system and help various cloud kitchens to partner with them. This is profitable for food entrepreneurs as well as different cloud kitchens.
Restaurants
With the growing trend of online ordering and delivery, restaurants can open a dark kitchen and try different cuisines and reach people. Once this process works, you can introduce these cuisines in a dine-in restaurant.
Things to check before starting a Cloud Kitchen
Location
As you don’t have a physical location, there is no face-to-face communication between you and the consumers. The food is served only through the delivery method. As a result, it is important to select a proper location. It goes with researching the demographics in that area, the food they prefer, online ordering records.
Ordering and Delivery Platform
As your business completely relies on an online platform, choosing the best platform is a key to success. You can either go with the third-party platforms or have your own platform. It’s always preferred to get orders on your platform from a profitability point of view. Third-party aggregators take commissions per order which is not beneficial to the cloud kitchens.
Marketing
Not having a physical location is a disadvantage as customers are not in direct communication with you. The only way people will know about your brand is by marketing. Existence of delivery platforms, social media presence, email marketing help gaining more orders. Hence, the revenue is generated. There are many strategies of marketing that helps cloud kitchens to lead success.
The demand for food delivery has made cloud kitchen the boom. Cloud Kitchens are definitely the future of the food industry.
You can also check What Cloud Kitchen can include in 2020?
