Primarily a cloud kitchen is essentially a restaurant kitchen which accepts incoming orders via online ordering systems. It does not provide dining facilities. The USP here is having a base kitchen – the food cooked here is delivered to customers.
In this business, the cloud kitchens set up their online ordering website, backed by online ordering app while also accepting orders via different. For these restaurants, it is very important to have a system that tracks deliveries through a check-in system, while also the volume generated across different platforms. Because the main source of revenue is through ordering platforms. This will help save crucial time and track your orders at the end of each working day. Let’s look at the basic points for setting up a cloud kitchen company:
Since a cloud kitchen does not need high footfalls or a prime location, this is a core differentiator between a conventional restaurant and a cloud kitchen. It can be located in any area but should have high customer demand, particularly for a specific kitchen. Residential zones, back-areas in busy markets, backyards and open spaces can be ideal for a good cloud kitchen site.Quite a few founders also opt for a shared kitchen room, as this helps reduce initial investment.
It is absolutely crucial to get proper licenses and certification to open a cloud kitchen which includes the food license registration. It helps to win customer confidence and avoid legal difficulties. These need to be prominently displayed on your website and in your marketing campaigns to pull customers for your high-quality food.
FSSAI: Food Safety and Standards Authority of India. FSSAI Licenses are required for food-related business in India and must be availed on behalf of the company and its owner. License can range from 1 year to 5 years and has to be renewed before expiry. Mention FSSAI on the packaging and invoice to generate confidence in customers.
GST: GST registration is compulsory for every business and they should file all the company related taxes timely. GST has to be submitted weekly, quarterly and annually. GST reduces tax amount if all parties have a GST number, thus helping to get licensed vendors.
Trade License: Every business needs as does the cloud kitchen. A one-time job, this can be taken from the local municipal office by giving all necessary documents.
Fire and Safety License: While not customary, it can be very helpful for the future. Moreover, fire safety and human health agreements are compulsory for any workplace.
The important licenses that a cloud kitchen company needs are FSSAI, Shop & Establishment, GST Registration, Fire Department NOC, etc. Ensure that you have these.
Kitchen Tools & Packaging
Your kitchen equipment and tools will specifically cater to the kind of cuisine served, so depend on that. The basic equipment required to start a cloud kitchen is – stove and oven, refrigerator, knives, etc
The packaging is a core part of running a food company. Even if the food is superb, bad packaging will ruin the customer experience. Packaging will be as per food type. Plastic containers, bottles, spoons, etc. may be required to ensure proper food packaging.
Owners must protect the brand against misuse by filing trademark applications for the logo. Also for the name, word mark -in this there can be different colours, patterns to give a unique identity. Trademark registration is absolutely crucial for the company because that is the only interface with the customer – hence the brand name is the only touch-point with the customer.
The Right Team
Since there’s no front, a big team is not required. Just 2 or 3 people focussed on preparing and distributing the cuisine. Starting with a small team is best, and you can recruit more staff as incoming order volumes increase.
Since there would be employees, to stay compliant, the business owner will take care of all relevant rules and laws. Professional tax registration, TDS, PF, Payroll and wage measurement becomes an essential and critical part of the business.
Market and generate online orders: Generating online orders is vital to the survival for the company. In the initial days, spending on promotion is highly important. List your cloud kitchen appliances on the online food aggregators, leverage social media marketing along with SEO. Promote some loyalty programs for regulars.