Cloud Kitchen is a raging concept these days. The CAPEX & OPEX is low and helps to get started with pretty less funds.
Introduction: What is a Cloud Kitchen?
A cloud kitchen is a concept of a delivery-only restaurant with no physical space and no dine-in space. A cloud kitchen is a shared commercial kitchen space that provides food preparation and storage for small businesses. This includes but is not limited to small catering businesses, food trucks, and pop-up restaurants.
A cloud kitchen utilizes a commercial kitchen for the purpose of preparing food for delivery or takeout only, with no dine-in customers. Cloud kitchens enable restauranteurs to expand an existing restaurant or start a virtual brand at a minimal cost.
A cloud kitchen aims to solve the need for more commercial kitchens in urban areas. The kitchens are often located in industrial or commercial spaces that are already equipped with the necessary equipment, such as refrigerators, ovens, and sinks.
What is the best location for your cloud kitchen business?
The first thing to do is to find a place that has plenty of space. It should have a stove, oven, sink, and refrigerator. The kitchen also needs to have enough room for two people to work comfortably in it at the same time.
The best location for a cloud kitchen business depends on the type of food you are serving. For example, if you want to sell burgers and pizzas, then it is best to open your restaurant near a park or an area with lots of families. This way, you will have more customers and it will be easier to attract them.
How to find an appropriate space for your cloud kitchen?
The first thing that you need to do is to find a commercial lease agreement. It will be the document that will outline the terms of your agreement with the landlord, so it is important that you understand everything before signing.
You should also consider how much space you need for your business. If you have a small operation, then renting a smaller space might be more economical and practical. If, on the other hand, you are planning on expanding in the future, then renting a larger space would be more beneficial in terms of potential growth.
How much does it cost to start a cloud kitchen?
The equipment for cloud kitchen comes at between ₹ 3.5-4.5 lakh. The cost of the interiors is around ₹ 2.5-3 lakh. The licenses and registration and franchise security deposit are ₹ 2 lakh each.
To start a food truck business, you will need to buy a truck and equip it with the necessary kitchen equipment. The startup cost of a food truck business is around Rs. 3 - 5 lakhs.
To open a restaurant you will need to pay for the property and the equipment. The opening costs of a restaurant are usually around Rs. 11 - 15 lakhs.
What are the benefits of starting up a Cloud Kitchen Business?
A business owner can start up their own small restaurant with the help of a small kitchen. The start-up costs for this type of business are less than the cost of a food truck. This is because the kitchen is more affordable and does not require much licensing or permits.
Some of the benefits that come with starting up a Cloud Kitchen Business are:
- Lower startup costs,
- Lower risk
- More flexible hours
- Easier to maintain