This year, the global market of online food delivery services is predicted to grow from $128.32 billion to $143.05 billion at a CAGR of 11.5%.
In the year 2022, the online food delivery market only in India reached $7.4billion.
Not similar to traditional kitchens, the cloud or virtual kitchens make food solely for delivery or takeout not for dine-in.
Cloud Kitchen demands minimal investment and opens opportunities for multiple brands to operate concurrently under the same roof.
Since the year 2016, the delivery industry is seen as the fastest-growing space in the food sector. Before COVID half of the Ameri; cans were ordering food delivery almost once a week.
But during the pandemic things got different. Due to lockdown and everything restaurant owners had to look for a way to operate properly. That is when cloud kitchen models became a hit.
It has became so hit that there are popular cloud kitchen brands now like Fasoos, Behrouz, Oven Story, and more.
Companies like Zuul kitchens and Kitchen United have created virtual food halls all around the Chicago and New York city, where the diners can order from their local favourites all at once.
Even the big celebrities like Wiz Khalifa and Rachael Ray made an entry in the Cloud Kitchen business with HotBox and Rachael Ray to Go.
Today, in the US alone, there are hundreds of cloud kitchens running successfully.
How To Start Cloud Kitchens
For starting a cloud kitchen, you have to consider a lot of things. Here, we are making things easy for you.
We gonna mention in detail about all things so make sure to read it till end.
To start a cloud kitchen of your own, you have to select three prime things viz-
A cloud kitchen model
Operational consideration of cloud kitchen.
Technical requirements of cloud kitchen
Choosing Cloud Kitchen Model
This is one of the popular cloud kitchen models that runs on a single idea where only one or two food items are provided.
Think of a pizza or burger joint where the menu only contain less than 10 items.
The cloud restaurants are usually brands that function inside a restaurant. It means the facilities of existing restaurants are used to work around a range of food menus. Majority of these kitchens are listed on third-party food aggregator apps like Dunzo, Ubereats, and Grubhub.
Co-working Cloud Kitchen
In co-working cloud kitchen model there are individual kitchen units of each brand. All brands operating under one kitchen space. Since there are many brands under one roof, the kitchen size also will be very large with ample of space to rent out to multiple restaurants.
Aggregator Cloud Kitchen
The aggregatoor kitchen model is kind of an extension of the coworking cloud kitchen system. The main motive of aggregator cloud kitchen is to offer facilities to the restaurants that have to make food for delivery only.
Operational Considerations of Cloud Kitchen
It is right that cloud kitchens doesn’t need any high-end location or space to match the users vibes. But it should be closer to the targeted group. Afterall Ghost kitchen is all about making faster deliveries.
License is always considered an important part in any kind of business. In the case of cloud kitchens, customers can not personally visit the outlet to ensure food hygiene and safety so certification and license will be a big help.
Cloud kitchens require specialized equipment and technology to manage orders, track inventory, and monitor food safety. Investing in quality equipment and technology to meet the demands of your busy kitchen and help streamline your operations is key.
Cloud kitchens require fewer staff than traditional restaurants, but it's important to hire experienced chefs and kitchen managers who can meet the demands of a changing environment. It's also important to provide ongoing training and support to ensure your employees are prepared for any challenges that may arise.
Technical Requirements for Cloud Kitchen
Cloud-based software (POS System)
A cloud-based point-of-sale (POS) system is essential for managing orders, inventory, and sales data in real time. It's important to choose a software provider that can integrate with other systems, such as accounting and inventory management software.
Online Ordering Software
Online ordering software is a crucial component of any cloud kitchen, as it enables customers to place orders remotely and ensures that orders are accurately processed and fulfilled.
Now, when you collaborate with a third-party integrator to host and manage your menu and deliveries, you end up giving them 12-18% of online orders and around 18-25% of deliveries. So, it becomes crucial to have your own online order software, like a web or mobile app. The best part is that this software can be linked to your POS.
Delivery management software
Delivery management software is essential for managing delivery logistics, such as tracking drivers, optimizing routes, and providing real-time updates to customers.
In addition to software, cloud kitchens also require POS hardware such as tablets or touchscreens for order-taking and payment processing. It's important to choose hardware that is reliable and user-friendly, and that can integrate with other systems.
Inventory Management System
Inventory management is a critical component of any cloud kitchen, as it helps to track and manage the flow of ingredients, supplies, and finished products. The inventory management system should provide real-time tracking of inventory levels, including alerts for low stock levels and automatic re-ordering. The system should provide accurate cost tracking for each ingredient and menu item, allowing for better analysis of food costs and menu pricing.
How Extern Labs Will Help You Launch Your Cloud Kitchen Business?
As an IT and software service provider, Extern Labs will be of great help in all your necessary technological infrastructure and support that is essential for the success of the business, be it the inventory management system, POS software, or delivery management system.
When you invest your time and money in cloud computing service providers like Extern Labs, you will realize that they have experience building cloud kitchen apps. Extern Labs has the technical expertise to scale your brand.
We have tried to cover everything related to cloud kitchens in this article. This knowledge is enough to get you started with your cloud kitchen business.
The only thing left now is to reach out to Extern Labs and kick-start your journey.