We get to hear this often these days about cloud kitchens in India as they are getting quite popular among the youngsters. A lot of people might have come across the question of whether it is a good business model, what are the estimates of setting up a Ghost kitchen, or could it become the dream startup that almost every one of us dreams off. If you are one of them, then guess what you have come to the right place and get all answers to your queries related to it.
Cloud Kitchens are also known as Ghost Kitchens or Virtual Restaurants, are becoming increasingly popular across the globe. They are kitchens built for taking away deliveries only and can be discovered through a website or food delivery app. The increase in this trend rose because of operational costs for a traditional restaurant and the demand for food delivery, which made people ditch mainstream dining. With the rising competition and ever-growing technology, the food space has been eruptive for quite some time. While the cloud kitchen business is a cost-effective restaurant format, it takes a lot to succeed. The concept of a cloud kitchen franchise is simple; the following steps are to consider before setting up.
Location and property
Place and property is the main difference between a conventional restaurant and a cloud kitchen. A cloud kitchen in India doesn’t need a high prime property position. Rather, it can easily be set up in a small room.
The cloud kitchen can be in a fairly inaccessible area, but with high customer demand, particularly for a specific kitchen. Residential areas, market backsides, unused parking lots make a perfect cloud kitchen spot. Instead, you can also go for a shared kitchen room, as this helps reduce initial investment it will generally cost 7000-15000 a month.
Since customers need to know more about you and are concerned about hygiene and health, they tend to search for a trusted source before ordering food online. Hence, making licensing important proper licensing gives them a sense of satisfaction.
Food Safety and Standards Authority of India. FSSAI Licenses are mandatory for food-related business in India and must be obtained on behalf of the company and its owner. The license period can range from 1 year to 5 years and must be renewed before expiry.
GST registration is mandatory for any business in India, and also it is recommended to file all the company related taxes timely. GST must be submitted weekly, quarterly, and annually.
Since you don’t have a house front, you don’t need a big staff 2-3 members can collectively work and can do effective work. Not having a bigger staff will ultimately lead to cost-saving and will help make profits, and for You would need at least two chefs, two helpers, and one housekeeper. The salary of the staff depends on their experience. The average salary of the Chef is Rs 14000- Rs 15000, while that of helpers and other staff salary range between Rs 6000- Rs 8000 based on their work.
Marketing or branding
Without having physical existence, it is hard to get people’s attention, so it is very important to have an online presence Proper marketing and advertisement are essential to the success of a restaurant. The first thing you need to do is get your restaurant registered on restaurant listing and review sites such as Zomato, swiggy, etc. Also try Facebook for advertising deals and discounts.
The other way of setting cloud kitchen is to buy a cloud kitchen franchise which is already doing well; for example, Zomato, an investment of 35-40 lakhs is required to do a partnership with zomato with earning of 3-4 lakhs per month there are many local kitchens which we can get a franchise from even with small investments in Delhi small café franchise like drifters café could be taken up and in Mumbai Burger fries factory is ready to give franchise for an investment of 4-7 lakhs.
With the rising competition and ever-growing technology, the food space has been eruptive for quite some time. While cloud kitchens franchise in India involves low risk and high benefit, it is important to be alert from the competition. If you are thinking to enter the food industry, the cloud kitchen theme is the safer alternative.