Cloud kitchens, also recognized as dark kitchens, ghost kitchens, or virtual restaurants, aren’t as complicated or otherworldly as you might think. The concept of Cloud Kitchens involves no dine-in services. Orders are taken via telephone or online, food preparation done remotely, and food delivered to a client’s doorstep.
Setup & Location
With no need for a full-frontal setup, most of the business can be carried out online. Generally, it is considered a low investment, low-risk business with high-profit potential. As such, it is an option for many aspiring business owners, so here are some tips when considering a Cloud Kitchen Business.
Location wise, cloud kitchens only require a small area to prepare the food, so there is no reason to worry about finding a prime location with high footfalls and the finances it would take to fund that location.
License
Licenses are very important for a virtual business as it puts all legal hassle out of the way. One concern for virtual food businesses is the hygiene and safety aspects that customers are unable to judge for themselves, so displaying the relevant legal certifications and licenses on your platforms will assure potential customers.
Packaging
The packaging is an important part of the consumer experience especially since it is one of the only connections to your business. Packaging will not only show the impression that you are trying to make but also helps set you aside from the rest of your competitors. So it is crucial to prepare good quality packaging and cutlery that are durable, suitable for its contents, and sustainable.
Staffing
Cloud kitchens require much less staff than physical restaurants as the main staff would consist of the chef, being the most important part of the crew, and just 2-3 helpers that handle packaging and delivery.
Gaining Customers
Since dropping by a Cloud Kitchen isn’t feasible, it is important to invest in marketing the business, especially during the initial stages. Utilising social media and websites to create buzz and gain audience Engaging with your audience from the beginning via promotions and using hashtags are good ways to start making sure your brand is noticeable. Paid marketing on the platform or via Google or social media brings higher visibility to your brand and is important in the early stages of your business. Listing your business on food aggregators also allows you to reach out and advertise to a marketplace that is already established.
Management System
Lastly, an integrated POS system that is able to receive orders from various aggregators will make handling orders more manageable. Keeping a record of orders from each system will help you identify which platform works best for you, so you know which platform to prioritise.
Finance
Taking all the aforementioned things into account, the early investments that will need to be made include room advance, cloud kitchen set up, raw materials, POS system, mobile phone and internet connection, physical marketing materials and overall marketing expenses as well as licenses and paperwork. Some recurring expenses that cloud kitchen businesses will face are room rentals, salaries of the chef and helpers, marketing expenses, raw materials, electricity, cooking gas, mobile and internet expenses, and delivery commissions.
As with any business, there will be initial investments, standards to uphold, and steps to be taken to achieve success. However, the cloud kitchen concept makes owning an F&B business a lot more feasible with the right budget and strategy.