What is Cloud Kitchen
With increasing competition and ever-increasing technology, the restaurant has not changed for a long time. The growing demand for online food delivery, high inventory costs, and declining grades has led to the rise of delivery only kitchens or cloud kitchens. Cloud kitchens or black kitchens, ghost kitchens, visual restaurants, and satellite restaurants, are gaining popularity in the F&B space. In particular, cloud kitchens are considered the smartest way to run a restaurant business. First, we look at what a cloud kitchen is. The cloudy kitchen is the only delivery restaurant with no visible dining area inside. It relies entirely on online orders placed by online food aggregators or online power order website or mobile app.
Cloud kitchen format gives the restaurant the ability to launch more than one product using the same kitchen infrastructure. Multi-brand cloud kitchens allow a restaurateur to use the same kitchen infrastructure and multi-purpose equipment. It is a restaurant kitchen that accepts delivery only outside of a traditional restaurant or restaurant. It is just a functional kitchen for preparing food that serves as a production unit. No luxury infrastructure, no waiter, no tables, no furniture, nothing. Customers can place their orders online through integrated online dining apps or through the restaurant app, hence the name cloud in the kitchen.
For example, a restaurateur with a delivery kitchen only and who delivers South Indian food can also start offering Mexican food. But instead of adding Mexico to his current team’s menu, he could start using a different brand that sells Mexico from the same delivery kitchen only.
Their existence on clouds
Cloud kitchens are one stop food production and delivery spaces where brands can rent out particular space only for delivery or takeout. Orders can be directly from customers using the official online platform of the said brand or a third-party order and delivery system. The facility can house more than one restaurant with a shared kitchen, similar to a co-operative, or a business can have one facility and produce all the production of its products under one roof as an incubator. But the general rule is that everything is easy to store, cook, assemble and deliver.
Some brick and mortar restaurants can grow into a cloud-based delivery but many startups have opted to go virtually without the sale, wait staff or food service. All they have is a basic kitchen, staff and an online ordering system.
Another interesting feature of cloud kitchens is that it is driven by data. Using the data stored on the user’s end in food delivery applications, they can determine census, location and food preferences that will help improve production and delivery processes to better serve customers. Sales data can identify needs, especially for certain students. Order data may specify working hours. Overseas, virtual kitchens push boundaries with robots and artificial intelligence. The potential for delivery of drones — to accelerate the delivery and construction of workers at lower prices — is also now being explored at a much higher rate than the past.
There are about 2.8 million restaurants in the country with just 700,000 of them being organized. Therefore, there is a supply gap for good assured quality food here.
Cloud kitchens serve the purpose of solving the supply gap. Essentially, cloud kitchens provided a model for outside food to be consumed at home with a very minimal capital investment in the cloud kitchen business model. Cloud kitchens are expected to grow at that rate of 50% to 60% in India.
Some of the most famous cloud kitchens in India are
- Behrouz Biryani
- Oven Story
- Firangi Bake
Third party delivery services
A cloud kitchen can have an in-house delivery fleet to pick up and deliver the food to the customer. Restaurants these days use a restaurant management software to keep track of all their delivery executives. An ideal POS should be able to provide you with a detailed insight on what your delivery employees are doing while work, their attendance, the average time they take to deliver an order, their feedback comments and what better can you do for them. One of these most ideal POS to use is Menew which is a software company providing services to manage your cloud kitchen activities better and making it convenient for you and your customers. But in case the delivery amount is too big to handle or any other factor, the restaurant can hire any third party food aggregator that will provide the services of pick up and delivery. This is a million dollar industry alone in India. A third party delivery fleet is basically a fleet of people who will deliver your food at the right place. Let’s see some of the most famous third party delivery aggregators.
Swiggy is one of the top third party delivery service in India. It was established with the purpose of giving entire sustenance, requesting and conveyance arrangements from the best nearby hotels to the customers. Swiggyis rated as the No. 1 online food ordering app in India with over 10,000,000+ downloads. The service which provides customers offering from any restaurant with no minimum order method and receives an amount like 5% to 30% of the amount received.
- Zomato Order
Zomoto Order is an online food ordering service that is launched by a famous restaurant finder Zomato. It operates in all major cities of India.Zomato is an online restaurant search platform available for mobile devices launched in 2008 which was later expanded to food order and delivery in top cities. Zomato operating in approx. 25 countries across the world including India, Australia, United States.
- Uber Eats (Now Zomato Order)
Uber Eats is a popular online food ordering app in India which is available in all major cities. This is a venture of Uber Technologies, Inc. who owns the very popular taxi service across the globe.Uber Eats operates in over 1000+ many major cities around the world in various countries and was officially merged with Zomato Order in earlier 2019 in India.
Foodpanda is a prominent online food ordering website and mobile app with its company headquartered in Berlin, Germany. Founded in 2012, the firm has partnered with nearly 40000 local restaurants in various cities to provide delivery on time.
Domino’s is a prominent pizza delivery app with its services available across India. The telephone call pizza ordering service now upgrades as a mobile app to place an order without the hassle of calling.
- Pizza Hut
Pizza hut is a global pizza delivery app service that is operates in several countries including India. It offers the very famous and loved arrangements, pasta, pizzas, beverages, and sweets.
JustEat is another comparable sort of administration that gives you a chance to order food from neighborhood eateries. It works in the greater part of the huge urban Cities in India and rated as Top Food Delivery Apps Mumbai.
Faasos’s is an Indian start up of food ordering that started in 2011. The app owns huge customers in top cities of India including Mumbai, Bangalore, Hyderabad and so on.
Cloud kitchen Business models:
Studying Cloud kitchen business models can help people who aim build a cloud kitchen of their own. It is also important to note that your business doesn’t has to fit in these types rather these models should fit in your business. You can have ideas that like mixing 2 or 3 models and making a hybrid one. One of the key characteristics of cloud kitchen is it is always cost effective. Make sure your business model is the exact image of the idea that first popped in your mind.
Standalone Cloud Kitchen –
These are private kitchens where one product owns or rents space for a single kitchen without providing a restaurant. These restaurants usually focus on one type of food and rely on different food aggregators or delivery channels.
Multi-brand cloud kitchen –
In this business model, many products under one parent company share a single kitchen, keeping operating costs low. Every product / restaurant is food-specific and caters to a variety of customers’ needs to share a large kitchen area, under one roof.
Commission Kitchen (Combined) –
Through the dynamic online delivery market, many aggregators have released their cloud-based kitchen models, providing an empty kitchen space and limited infrastructure for restaurant businesses to hire. Restaurants can use these fully assembled or shell kitchens according to their shared needs. So basically, many small kitchens can work within one area in a large kitchen, with many cooking tips at any given time.
Exposed Cloud Kit –
As the name suggests, this model allows the restaurant to exclude any process – or the whole – process, without a touch of finality. The chef provides the final touch before the food comes out for delivery. Rest all functions, from food preparation to customer-focused operations, excluded.
Co-Working Cloud Kitchen
– A co-operative cloud kitchen is a great kitchen infrastructure, where many types of restaurants can rent and start working on it. These kitchen spaces are located in strategic areas and have separate kitchen units of each type, equipped with the necessary equipment and resources.