Cloud kitchen is taking the food industry by storm. It has become a popular business model for restaurants, allowing them to increase their reach and reduce their overhead costs. So, if you are looking for how to start a cloud kitchen, follow the steps below:
Starting a cloud kitchen business is an excellent way to make money and provide delicious meals to customers.
However, before you start a cloud kitchen, research the business carefully. By doing this research upfront, you can ensure that you have the best chance of success with your new venture.
It includes researching the market, understanding customer needs, and assessing potential competitors. Additionally, you need to analyze your finances and create a detailed budget for your cloud kitchen.
The cloud kitchen market size in India is projected to increase from approximately USD 400 million in 2019 to USD 1.05 billion in 2023 and further expand up to USD 2 billion by 2024.
In fact, the cloud kitchen profit margin is impressive and the industry is rapidly growing. If you start it with the right tactics, your chances of success will be very high.
But before that, you need to decide on a cloud kitchen model.
There are various types of cloud kitchen models in India, such as:
Each type has its advantages and disadvantages. Therefore, make sure to consider them when deciding which type is best for your business needs.
Setting up a cloud kitchen doesn't require you to have a large or visible space anymore. The minimum area requirement is only 300 sq ft. So, location has become less of an issue when it comes to setting up one.
However, you must consider the factors like hygiene, running water and electricity when choosing a location for your cloud kitchen.
In fact, infrastructure improvements and making the kitchen look nice are not essential as it is unlikely that anyone apart from chefs and staff will visit.
It is important that you register your business before you begin operations. It will ensure that your business is legally compliant and can operate without any legal issues.
Moreover, it makes it easier for you to receive funding, apply for permits and licenses, and keep track of taxes.
The process of registering your business may vary depending on the business structure you register as.
The most preferred business structure for a cloud kitchen is Pvt Ltd Company, Limited Liability Partnership or One Person Company.
If you don't know what company registration online option works for you, our team of experts is available to help.
They can provide guidance and step-by-step instructions for an easy online registration process.
Starting a cloud kitchen requires you to obtain several licenses and permits from the government.
One of the most important licenses is the FSSAI license, which stands for Food Safety and Standards Authority of India.
This license ensures that all food products produced in your kitchen are safe for consumption.
You will also need to apply for other licenses such as fire safety, health and hygiene, pollution control and others depending on your state's laws.
With these licenses in place, you can ensure that your cloud kitchen is compliant with all laws and regulations related to food safety and quality standards.
The next step is to ensure that you have the right equipment and raw materials to get the most out of your business.
This includes items such as commercial kitchen equipment, food storage containers, refrigerators, microwaves and other things needed for food preparation.
It is also important to purchase high-quality ingredients from reliable vendors to provide the best results. Additionally, it is wise to buy in bulk whenever possible as this will help you save even more money.
Setting up an online food ordering system is essential for any cloud kitchen business.
The online ordering system helps businesses save time and money as it automates the process of taking orders, processing payments, and even tracking orders.
It also provides customers with an easy way to view menus, place orders, and track their progress.
You can initially up your cloud kitchen on delivery systems like Swiggy, Zomato and Foodpanda. They will take orders from customers on your behalf and deliver the food to their address.
For this purpose, they may charge you anywhere from 18-30% of your total revenue per order. Additionally, they may require a one-time payment for the integration process.
With the help of this system, businesses can easily manage orders and deliveries efficiently while providing customers with a great experience.
Hiring the right chef and staff is crucial to ensure that your food is prepared correctly, orders are fulfilled quickly, customer service is top-notch, and the kitchen runs smoothly.
Therefore, hire someone who is experienced in cooking for large groups of people and is familiar with food delivery services.
Cooking Academies are a great way to find quality chefs and assistants without the hefty salary demands.
Keeping costs down is important for running a successful business, and this could be an option worth considering.
That said, it's essential to make sure they have good culinary skills before you hire them.
Talking about the other staff, you can find them on the Job Search Portals and even ask your friends and relatives for referrals.
Once all your preparations are done and you're ready to receive orders, start with promotions.
Being in a less exposed area, you need to proactively market your business in order to let more people know about it.
There are various marketing tactics that you can use to promote your cloud kitchen and reach out to potential customers.
Utilizing social media platforms such as Instagram, Facebook and Twitter, together with email campaigns can be effective in targeting potential customers.
To gain customer attention, use attractive, delectable images of your dishes in your promotional materials. This will entice them to give your food a try.
In fact, offering discounts and free dishes can be an effective way to increase customer orders and boost your business.