Cloud kitchen is the new term that we have come up to in the recent days. All of us read this word in newspapers and see in many news platforms but Do we actually know the difference between these two? Therefore, let us start with what is cloud kitchen?
Basically, cloud kitchen means a restaurant from you can order foods but you cannot have that in the restaurant. These types of kitchens are just made for online orders. These cloud kitchens have multiple restaurants operating from the same place and they even deliver foods at the customer’s doorstep.
Whereas, the traditional are those restaurants who either tie up with the third party platforms for online orders or do not offer any online orders.
To understand it better, let us see some of the examples of the Cloud kitchen models in India and whether it is being successful or not.
If we start with the cloud kitchen models in India, then the first one that comes to our mind is Faasos and the second one is Freshmenu. Faasos was the first start up to come up with this platform in India. Nobody knew that it would reach at such a position. It started with 10 cloud restaurants in 2011 and now it has more than 125 total outlets in the country. The multiple restaurants that Faasos operates is Oven Story for pizza, Sweet truth for desserts etc.
Recently, it raised $100 million in new fund raising.
Like Faasos, FreshMenu also started with the same model and now it is seeing a growth of 30-40 percent month by month.
Apart from their own mobile based online ordering platforms, they are also listed on other food aggregators like zomato, swiggy etc. Most of their business comes from the third party platforms now but they are offering discounts and faasos referral code to let their customers earn when they refer them to their friends and relatives. It’s a good approach to get new customer acquisition.
How to Open a Cloud kitchen?- A step by Step Guide
If you would like you open a cloud kitchen, then there are certain points you must know before going for it. These are:
- Finalising the location for the cloud kitchen –- Location do not have to do a lot for a cloud kitchen as it has nothing to do with the in store footfalls. But still proper sanitation and water supply is required and these need to be checked once you decide the location. Apart from this you also have to see the rent of your kitchen.
- Technology used for online getting orders—Since a cloud kitchen wholly depends on the online orders. Therefore, you must tie up with the online platforms like zomato, swiggy, foodpands etc but apart from this you must have at least a website where customers can order food online and can contact you in case of any dispute.
- Obtain the licence for cloud kitchen—It should be the first step when you decide to open a cloud kitchen business. The licences you would require are FSSAI licence, GST certificate, Fire safety licence etc. These must be acquired before opening the cloud kitchen.
- Marketing Online-— In case of cloud kitchen business, online marketing plan is a must. Since your customers would be the persons who prefer online orders, therefore, you must be visible to them online on different platform. Do it wisely or hire a good digital marketing agency.
Opening a cloud kitchen is an easy task but making it profitable is difficult. Seeing faasos cloud business rising, even zomato started its own kitchen but later they had to close it. This means that surviving in this category is not so easy and if even food aggregators had to close it even having their own platform with so much of customer reach.