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Business Model of cloud kitchen

Cloud Kitchen is basically a selling food online from home. it is a profitable business if you learn how to start it, then it will be easy for you.

Building a successful business model is not about changing your company based on every bit of feedback; it is about understanding whom to listen to and why.

So, today I am going to cover:

Now let first understand

1.What is this cloud kitchen?

What is cloud Kitchen

cloud kitchen! We are hearing it quits often. right?

  • Is it a good business model or not?
  • If i am very much interested in food and i want to open my own restaurant,Would the cloud kitchen be a good way for me?

So, first of all we will talk about what does cloud kitchen mean?

Cloud kitchen means a restaurant that doesn’t exist physically, you cannot go and get food from there.

You just have to order the food online and they will deliver it to your home.

Here, they do not require dine-in or any exclusive space in some mall, they can open their outlet or kitchen anywhere and start selling food from there.

You can also make food from your home or, online they would also be considered cloud kitchen model.

Here, you do not have to do any setup or interior decoration, no work on the flooring or expensive cutlery sets not even to the staff who serves the meal in a dine-in restaurant.

You only have to pay for the chef who would make the food.

Now, for better understanding I’ll make a road map for you so that if you wanna open a cloud kitchen of your own than

2.What are the things you required to do and, how much would be the cost?

how much would be the cost

I am assuming that till 5 months you won’t be able to break even. which mean for 5 months we won’t be able to come in profit.

So, very first thing required is place for rent,I am considering 10,000 per month (Total 50,000 rs for 5 months) .
I am considering the equipment that is required to make food, all the appliances and gas equipment.2,50,000 Rs.
In licensing you would be requiring four Licenses
1. FSSAI (food licenses)
2. GST (for listing on zomato and for all online payments)
3. Fire, Security and Safety
4. MCD’s trade license (it’s health tread licenses)
15-20K approximately
In staff, i am assuming two people in the staring. (CHEF)Salary 20K AND 15K (Multiplying with 5 for 5 months)
A software needed for the bills(inventory management)15,000 max
Working capital 50,000 Rs
Marketing, for advertisement on social media (it will take you to the next level) 1,00,000 Rs (it’s included packing and all.)
Delivering expensesself delivering or you can go with the zomato.(up to you)

3.Mistakes to avoid before starting cloud kitchen.

Mistakes in cloud kitchen

We all had come up with a thought of opening their own restaurant at least one in a life. Sometimes we fail to open the restaurant because of some circumstances or sometimes the restaurant didn’t work well.

Most of people also think that restaurants are a source of passive income.

The money will come automatically after opening that .

but let me tell you the fact, that 60% of restaurants closed in their first year and 80% of restaurants closed within 5 years.

4.Why most of the restaurants fail?

  • Location
  • Cuisine
  • Hard work
  • Management
  • Right Employees
  • Customer Service
  • Feedback system
  • Money Calculation mistake
  • Unnecessary staffs
  • Food taste

#1.LOCATION

LOCATION of cloud kitchen

Location is the most important factor. restaurant owners fail to choose that the location where people like to come.

There are some restaurants which are located in the streets but still, people go there because those restaurants are famous now.

But, you are new and nobody knows you so you need to open your restaurant where people usually comes and try out your recipes.

So, location is the most important factor for a restaurant.

#2.CUISINE

CUISINE

Another thing is which type of cuisine you are going to offer.

cuisine is a style of cooking characterized by distinctive ingredients, techniques and dishes, and usually associated with a specific culture or geographic region. Regional food preparation traditions, customs and ingredients often combine to create dishes unique to a particular region.

If you are thinking of selling Chinese, Italian,or something else than location should be suitable for your food. so always choose the location according to your food.

For example, if i am going to sell any foreign dish, i would not go to any local area, right.

#3.HARD WORK

HARD WORK

The most important thing is restaurants owner thinks it is a source of passive income and because of that they don;t do hard work.

one thing you have to understand that you need to work in your restaurant and nobody can understand your business better than you.

So, the restaurant is a type of liability business. it’s not like you open the restaurant and will start to make money from the very first day.

#4.Management

Management

The third reason is poor Management , As a owner you can’t be available at the restaurant all the time.

Suppose you expand your business to 50 restaurants so you can’t be available everywhere, right?

for that you need a good leader who can manage your restaurant whenever you are absent and this is necessary.

#5.RIGHT EMPLOYEE

Right Manpower

If you don’t choose a good leader then he won’t be able to handle all other employees and will lack good leadership qualities.

Due to this thing employee will be left your restaurant soon and then the thieves will start and things like this will keep happening.

#6.CUSTOMER SERVICE

RIGHT EMPLOYEE

The next thing is customer service, They come to your restaurant and everything is fine the food, price everything is OK but communication and your behavior to your customer is not acceptable.

For example, sometimes what happens is you gave your customer burnt food and he started complaining but instead of listening to him you are avoiding him.

so due to this, the customer will spread negative word of mouth at the end, you will get a negative response from the market.

for this, we have to build a feedback system. i am giving you a link in the eyeball for the video i made on how to build an impressive feedback system in the service industry.

#7.MONEY CALCULATION MISTAKE

MONEY CALCULATION MISTAKE

Next, the biggest problem is the accounting problem,

most of the people don’t know hoe much money i need to start or run my business for the next 8 months or 10 months until it become profitable.

People just consider the one – time investment and don’t think about the extra cost.

and due to this thing, only a few audiences will come to our restaurant because we have already skipped so many things.

less audience means fewer sales and automatically restaurant will be in loss and unfortunately, it will be closed soon.

They are not good at accounting and this is one of the reason why many restaurants fail.

They didn’t do calculate properly about how much time and money do they need to run restaurant, it will easily take around 4-6 months for any restaurant to become profitable.

So, you need to calculate the expense for 6 months and you should have that amount of money.

The second calculating mistake people do, they don’t calculate the proper costing of their product which is a bad thing.

you should know the exact cost of your product or service whatever you are selling and if you don’t know so don’t do that business.

#8.UNNECESSARY STAFF

UNNECESSARY STAFF

The next main problem is, I have see in many restaurants that they usually hire unnecessary staffs.

According to me if any of your staff is waiting for work so it means we don’t need that worker.

So, there is no need to hire extra staffs because if you do your overall expenses will be high and ultimately you will be in loss.

There was a restaurant which was located nearby my hose and their food was but it was expensive because due to unnecessary staff overall cost was increasing.

So the point is we shouldn’t hire extra staff unless it required.

#9.FOOD TASTE

FOOD TASTE

For me and for the majority of the people taste is the biggest factor. Without test you can’t expand your business.

Instead of sell, every food item sells a few ones but it should be tasty. So good taste is a mandatory thing because.

Try to sell only a few things just focus on one or two foods dish and then try to increase more food items according to your specific industry.

Don’t ever try to compromise food taste because of the price.

Nowadays people are ready to pay the extra price for food but the taste should be worth the amount.

Never compromised with the taste you might become cost leader by selling more units at less price but you can’t stay in the long term by doing business in this way.

But, if you want to become a brand in the food industry you have to offer delicious taste in your food.

FAQ’s

1.Can we start cloud kitchen from home?

Yes cloud kitchen from home.

2.Is cloud kitchen is job?

Basically it is self employment, but you can build system and process to convert it into business.

3.Is there Cloud kitchen future?

yes, Zomato like companies have long vision and if they are growing then defiantly you can also.

4.Are cloud kitchens profitable?

yes, if you want more profit from cloud kitchen then connect your business with Zomato, swiggy etc. food delivering businesses.

5. is cloud kitchen is intenet business?

yes cloud kitchen concept of selling food online.

6.can I start my own kitchen at home?

yes, definitely you can start your clod kitchen from home.

  1. Can we start cloud kitchen from home?

    Yes cloud kitchen from home.

  2. Is cloud kitchen is job?

    Basically it is self employment, but you can build system and process to convert it into business.

  3. is there Cloud kitchen future?

    yes, Zomato like companies have long vision and if they are growing then defiantly you can also.

  4. Are cloud kitchens profitable?

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