Insights about starting a Cloud Kitchen
The Food market in India is ever flourishing. We all get to food outlets and have all we like on our plates. But it’s more promising with Cloud kitchens that other than ‘’we traveling “the food”, “travel to us’’. The concept of cloud kitchen is a newly sneaked concept in the food industry where the food operators are making better savings in their operational costs closing their upfront food stores and moving into cloud shops/outlets.
What is Cloud Kitchen?
It is always better to deliver customization in goods & services to customers. Cloud kitchen facilities such customization in the food culture to the foodie people to build and buy food packages as per their likings, occasions, and preferences. From the point of view of food outlets and restaurants, it is another food shop placed virtually on the internet to spread its access over a large geographical area. In short, it is a concept of market expansion for food sellers.
Forming a Cloud Kitchen
To start from scratch, you have to work on:
- Hiring or buying a kitchen space.
- Obtaining Registration and food license.
- Buying the kitchen equipment.
- Placing a Cloud Kitchen Website/app/association at exercising platforms like Zomato & Swiggy.
- Hiring Staff for preparing food and delivery (optional)
Hiring or buying a kitchen space:
Delivery of meals in a cloud kitchen takes place in a series of steps where food is prepared at a particular physical location, ordered at the cloud kitchen and is delivered to the person who is placing the order by the delivery staff. So, the primary step calls for the preparation of food at a physical location which depending on the investment power of the initiator can be big or small.
Obtaining Registration of Business and Food License:
Before hopping into the food business, it is obvious to note that the government has a major concern towards the health and hygiene of people. So on that point, the food preparer has to ensure that the food being served to the consumer is nutritious, away from adulteration and comes from a hygienic source.
All these have to be assured to the government by obtaining registration of business under FSSAI (Food Safety and Security Association of India), Trademarks and Copyrights, etc. For tax purposes even, the business is required to obtain GST registration and other related registrations as per need and scale of business which may include proprietorship registration, company/LLP registration, brand name registration.
Buying Kitchen Equipment:
It depends on the number of cuisines that will be prepared and involved in the food menu for deciding for the right type and number of kitchen equipment to be obtained.
Preparing & Placing a Cloud Kitchen Website:
The way the business shall present the food cuisine to the customers will decide the number of frequent orders he’ll be getting on the cloud kitchen. So, a website is to be prepared to showcase the dishes and food meals provided, which should be tempting enough for the buyer to place an order.
The website should be made well trustworthy by showing all information about the business, its registration, tax details, licenses obtained, hygiene policies and terms of sale.
Hiring Staff for food and delivery:
With all other things well fulfilled, the Cloud Kitchen is to be sufficed with the required food preparers and the delivery staff which will deliver the food orders to their locations.
Some Cloud Kitchen Models
- Independent/Single Cloud Kitchen (Self-owned)
In this model, the kitchen is receiving online orders on Self-owned Cloud Kitchen. The kitchen is then Taking order and Preparing food which is specialized in a cuisine. The delivery of the food is can be made by the kitchen itself or via aggregators as agreed mutually.
- Single Cloud Kitchen (Association)
In this particular type of kitchen model, the kitchen is receiving orders from other’s cloud kitchen associated with it. Upon receiving such orders, the order is being prepared and such order can be delivered by such a cloud kitchen or through the aggregators.
- Multi-brand Cloud Kitchen
The Multi brand cloud kitchen model processes the order received in the following manner:
It starts with owning a cloud kitchen and accepting the listing of food preparers. Further, taking the order ahead and providing to food preparers to initiate the order. In the last, the delivery of the food order can be made by the same cloud kitchen or through aggregators.
- Outsourced Kitchen Space
This model starts with providing physical kitchen space on rent or on payment of a fee etc. to the food preparers that are hired on a contractual basis or on a full-time basis. The next step is to receive the food order from the outsourced kitchen and done final customization. The delicious food is then prepared and ready to go to the customer. This can also be done through aggregators.
- Outsourced Kitchen equipment
This model describes the process initiating by providing access to kitchen equipment for preparation of food at a particular location or mere delivery. It means the equipment are owned by the kitchen. The other process related to delivery is the same.
- Speciality Cloud Kitchens
The specialty cloud kitchens highlight the process which is different from other models in terms of receiving orders for only special cuisines. The preparing or outsourcing special food orders option is also available in this model. Therefore, the delivery can be made by the same kitchen or via aggregators.
Note: All food start-ups require a food license.
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