Skip to main content
Asked a question 2 years ago

Explain the concept of cloud kitchen.

Where am I?

In StartupTalky you can ask and answer questions and share your experience with others!

Puru BhatnagarTop Contributor
Business Analyst, Entrepreneur, Business developer, Marketer

Cloud kitchen concept is in hot trend right now.

Many restaurants owner and other health specific diet sites are moving towards cloud kitchen concept.

Recently startup like Swiggy is investing in this very new concept and it seem that in near time it will be in much demand.

So the question what is this cloud kitchen concept, it is basically a virtual kitchen which don't have any physical existence, but it provide a way for restaurants to expand their business.

There is a division of a well know fitness startup eat.fit125 which is based on cloud kitchen concept, and it provides diet according to the fitness plan.

So, many restaurants owner has expanded their menu even if they don't have necessary infrastructure for it.

 

In this technology-driven era, every 1of the three people are trying to set its own business. This has created a good competition has made the whole market a little bit volatile. One such market is the food and restaurant space.
Whenever such competition arises, the market researchers about the new way to implement the same thing. One of the new direction in this food and restaurant space in the cloud kitchen.

CLOUD KITCHEN

The cloud kitchen is one of the smarter way to the restaurant business.

A cloud kitchen is a virtual restaurant. It does not have any physical space or any  dine-in or takeaway facility. This is due to the fact that it does not exist as a fully furnished restaurant of any sort. It is something like a virtual restaurant which is having only the kitchen and is delivering the food based on the online or telephonic order only. Such a kitchen model makes third-party integrations for many purposes like for home delivery etc.
E.g.:-
If any person is good at making dishes of some category or having a dream of opening a restaurant, but he/she does not have a budget to open a restaurant then, they can try a cloud kitchen. This decision of opening a cloud kitchen has many reasons in your favor. They are:-

1) Low-cost Investment

Cloud kitchen is a very low-cost investment, where you can fulfill your dreams in a minimal investment of money. In this business, you don't have to buy or take a rented place. This reduces a big cost which sometimes becomes a burden on most of the restaurant during its initial period of time. So, you will be having only the ingredient cost, which you have to purchase beforehand only. This feature makes this business a better option than opening a well-flourished restaurant.

2) Flexibility in menu

The cloud kitchen provides you the flexibility of choosing the dish items in the menu. These dish items can be change at any time when required, according to the trends. In other words, you can experiment with your menu if it doesn't work well for you.

3) Higher margins

The cloud kitchen owner have the advantage of setting their own price on the dish. This can have higher margins. This margin can help you in competitive pricing with your competitors at the later period of time.

4) expansion opportunities

The cloud kitchen can help you to get a great success. This can help you to expand in different territories according to your own pace of expansion. If any of your competitors is coping you and is not able to get success, then you can acquire it. This acquisition will help you in the expansion as well as help him in exiting this business niche.

 

CLOSING STATEMENT:-

The cloud kitchen is the upcoming opportunity for all those people, who want to have their own business. This business can work you according to your pace and your requirements. The best example of this type is FAASOS.

 

 

If you like this answer then please hit the like button.
FOLLOW IF YOU LIKE THIS ANSWER.