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According to statistics, the Global Cloud Kitchen Market size is estimated to reach USD 71.4 Billion by 2027, with a CAGR of 12.0% from 2021 to 2027. This shows the immense potential this wonder format holds. In this article, we will discuss in detail what exactly is a cloud kitchen, and all you need to know to open a cloud kitchen business.
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What is a Cloud Kitchen & start a cloud kitchen ?
A cloud kitchen is primarily a restaurant kitchen that only accepts incoming orders via online ordering systems and does not provide dine-in service. Cloud kitchens are also referred to as “ghost kitchens,” “virtual restaurants,” and “satellite kitchens.”
Cloud kitchens can have their own online ordering website and app, or they can accept orders from various food delivery platforms. Because the primary source of revenue for these internet restaurants is through various food ordering platforms, such as Swiggy, Zomato, and others, this would save you the time and effort of manually adding and calculating orders from various ordering services at the end of each day. Faasos by Rebel Foods, Hoi Foods, Biryani By Kilo, are some of the famous examples of Cloud Kitchens.
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Cloud Kitchen Business Model Varieties:
The cloud kitchen business model has evolved and diversified into the following categories:
(a) Single Brand/Standalone Cloud Kitchens
Standalone and single-brand cloud kitchens accept online orders and operate under a single theme and concept. They typically serve 1-2 cuisines and have a limited menu of 10-15 items.
(b) Online Restaurants
Virtual restaurants are brands that only exist online, either through third-party online food aggregators or their own online ordering website. They have a distinct identity while utilising the kitchen infrastructure and resources of a well-established restaurant.
(c) Cloud Kitchens is a multi-brand company.
A multi-brand cloud kitchen is a large kitchen space that houses multiple brands’ operations. Specializing in a single cuisine, standalone cloud kitchens had a limited customer base and lesser margins. To combat menu fatigue, capture a larger market, and increase customer frequency, famous brands like Faasos and Box8 embraced the concept of multi-brand cloud kitchens. A multi-brand cloud kitchen model owns several brands, under one parent company.
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How to start the cloud kitchen & grow the brand?
A cloud kitchen can reduce the capex by 40%. These cost to buy items and rent can be anywhere between $30,000 to $180,000 (Rs 60K to Rs 1 lakhs) per month, labor cost, decor and remodeling costs, etc.
Growing the Cloud Kitchen Business
Once your cloud kitchen business is set up and running, you will be looking at how to increase online orders, boost sales, and eventually expand the cloud kitchen business.
Marketing the Cloud Kitchen Business
It is highly advised to spend on marketing on the online aggregators’ app or website, at least in the initial stages, to reach out to potential customers and to create brand awareness. At the same time, you must also work to build organic channels for generating orders.
(a) Marketing on Online Food Aggregators
There is stiff competition for cloud kitchens even on the mobile food ordering apps, and more than often, there is a high chance that your cloud kitchen would not even appear before the customers.
(b) Creating an Online Brand
Creating an online brand organically is tedious and time-consuming, but it reaps great rewards in the long run. It is imperative that you build organic sources for your orders, such as an attractive website and by leveraging the power of the social media platforms, right from the initial days, even if these don’t convert to sales immediately.
(i) Website – An online ordering enabled website is essential for a cloud kitchen business, not just for generating orders, but also for establishing an online presence. You should have a single website with different sections for each of the cloud kitchen brands. Each section should showcase the USPs of the brands along with the menu. The section should also include a clear Call-to-Action button that would lead visitors to the online food ordering page.
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Ensure that the website is mobile as well as search engine optimized. The content on the website should include keywords and phrases that talk about your food and offerings. This would help your website rank better on search engines.
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(ii) Social Media – It is essential to have individual social media pages for each of your cloud kitchen brands as it helps to attract new customers and engage with existing ones. Post images of your food consistently on these social media pages to increase your online reach. Remember to include the link to your food ordering page so that potential customers can visit the page and directly order from there.
(iii) Cheap advertising – Since cloud kitchens are solely online-based businesses, the most efficient marketing channels for them is social media. With a smart social media strategy, these restaurants can reach out to their core audience.
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Start your own cloud kitchen complete digital marketing setup & advertising. Contact us here
