Nowadays, we store our photos, broadcast our movies, and even run our business in the cloud. And more and more often, we realize it, this is where we order our food. Maybe you are thinking that it’s nothing new and you are right.
These proxy kitchens are also sometimes called ghost kitchens, virtual kitchens, or shared kitchens with delivery-only branding known as virtual restaurants. High startup costs, heavy regulations, all threaten the restaurant industry and traditional food business models.
Firstly, here we will get into how a cloud kitchen differs from a normal restaurant offering delivery, and know about the cloud Kitchen Benefits and cloud kitchen concept.
What is cloud kitchen?
Mainly, Cloud Kitchens work on the HORECA model. A Cloud Kitchen is also called a ghost kitchen, virtual kitchen, or shared kitchen. The cloud kitchen uses a commercial kitchen solely for the purpose of preparing food for delivery or takeaway, with no customers eating at the restaurant. Moreover, cloud kitchen benefits allow restaurant owners to extend existing restaurants or create virtual brands at a minimal cost.
A cloud kitchen startup is profitable
Cloud kitchens are very profitable, and running a cloud kitchen can be expanded much more easily than eating out operations. Since a cloud kitchen can reach customers across the city without investing in large premises, it can be more profitable than a restaurant. Once the kitchen built its brand and gained a solid customer base, the kitchen started receiving a large number of orders.
The global cloud kitchen market is valued at USD 29.4 billion in 2020 and, is expected to reach USD 112.7 billion by 2030, growing at a CAGR of 13.12% from 2021 to 2030.
How to start a cloud kitchen?
Cloud kitchen saves food business time, money, and hassle. The main licenses for starting a cloud kitchen business are FSSAI, Store & Facility, GST Registration, NOC Fire Department, etc. That is why you need to make sure you have them before starting a food delivery business. Moreover, each cloud kitchen provider’s process for securing your cloud kitchen rental varies.
Who Uses Cloud Kitchens?
Popular with national brand chains, local restaurants are quickly turning to cloud kitchens as the ideal solution for growing their business. Here are a few business types that include cloud kitchens in their growth strategy.
Delivery-optimized ghost kitchens allow you to process orders without any additional overhead or hassle. Also, cloud-based restaurants use their own online food delivery or white label platforms to order and facilitate delivery logistics. The consumer then places an order via a mobile device and has the food delivered to their home or office.
Meal preparation companies:
Meal preparation companies often require kitchen space only a few days a week. Cloud kitchens can give you this flexibility.
If you run a food company and want a private kitchen and storage without investing a lot of money? Then, Virtual Kitchens are an ideal solution for you.
Food Product Testing:
Cloud Kitchen is a low-risk, low-capital solution that allows businesses to launch new food and branding concepts.
Packaged Food Producers:
The cloud kitchen provides packaged food manufacturers with ample storage space and equipment.
Cloud Kitchen Benefits
With the 2020 pandemic, cloud kitchens have become a hot topic for restaurant owners as off-site dining becomes more popular. The Cloud Kitchen model is gaining progressively popularity in countries like INDIA, UAE, and USA.
Cloud Kitchen gives users the freedom to focus on food preparation and product marketing while minimizing the administrative and logistical complications that often plague food businesses. Here we have told about cloud kitchen benefits.
some cloud kitchen benefits here.
It’s Affordable Startup
Food businesses save money by using cloud virtual kitchens. Indeed, hiring a commercial kitchen from a ghost kitchen supplier reduces start-up costs, as food businesses no longer have to commit capital for building inspections; expensive building construction; or compliance with the planning; Cloud kitchens also allow food businesses to start in days or weeks, as opposed to the months or years required for traditional building leases or mortgages.
Traditional restaurant owners struggle to float because of expensive utilities, high property taxes, tedious salaries, and tedious maintenance costs. In contrast, Cloud Kitchens handle these costly and time-consuming administrative issues. Restaurants that work in cloud kitchens often employ only one or two chefs and share community costs with other tenants.
Suppose, you are running a food business and to not able to focus on your customers and food. virtual kitchens make this possible! Ghost kitchen franchisers often handle the following management tasks.
- Security Monitoring
- janitorial services
- equipment repairs
- health inspections
- property taxes
- utility bills
Optimized Delivery Experience
Do you have an actual restaurant essential to your brand? So, Cloud Kitchen allows you to expand your brand by facilitating delivery from a single location and increasing your revenue stream. Cloud kitchens allow your physical restaurants to meet higher demand without overwhelming kitchen staff with online food delivery orders.
Satisfied Customer Demands
With the cloud kitchen, you can meet the demands of your customers. Moreover, the popularity of online grocery delivery has skyrocketed as consumers demand affordable and affordable meals. Cloud kitchens are driving this growing demand for online grocery delivery by streamlining the delivery experience through efficient logistics, low cost, and innovation.
Digital brand awareness without high marketing spend
Cloud kitchens allow brands to focus on food delivery and reach a larger audience. Delivery-optimized restaurants are more likely to promote their business through delivery apps and social media than through narrower marketing channels. Cloud Kitchen can strengthen your brand by strengthening new marketing channels and gaining broader awareness.
Why it is called cloud kitchen?
The current cloud kitchen concept was originally born in India.
In 2003, with the support of Sequoia, Rebel Foods launched its first company, Faasos, to sell kebabs. Currently, Rebel Foods has more than nine brands, recently raised $ 125 million and is worth $ 525 million.
No chic infrastructure, waiters, tables, furniture, nothing at all. Customers can order online through online food aggregators or restaurant apps, hence the name cloud kitchen. These kitchens are also sometimes called ghost kitchens, dark kitchens, or virtual kitchens.
Here we have told about cloud kitchen benefits, which you can read this article and clear ghost Kitchen concept. The cloud kitchen model is gaining progressively popularity in countries like INDIA, UAE, and USA. Plus, you can consider the cloud kitchen benefits in order to provide the best service for your business. The virtual kitchen model has a very bright future. In fact, numerous factors are influencing the growth of this model. Cloud kitchen business startup owners have a bright future with minimal cost and maximum exposure!