It is being projected that the Global Cloud Kitchen Market size would touch USD 71.4 billion by 2027, according to Valuates Reports 2020.
This popularity of the Cloud or Digital Kitchens comes from the high demand for online food delivery (primarily triggered by Covid lockdowns), followed by the fascination for international cuisines, and deeper penetration of the internet across India and the world.
But in terms of business what drives this growth is the cost-effectiveness that cloud kitchens offer. A traditional restaurant often struggles with high rentals and reduced margins whereas a cloud kitchen wouldn’t require a fancy space and is deemed a smarter way of running the food business. Moreover, the business largely remains unaffected by lockdowns which have been highly unprecedented ever since the start of the pandemic.
Setting up a cloud kitchen involves a few steps including:
1. Location & customer demographics
It is important to find a location based
on the customer demographics and the kind of food products one decides to sell. In other words, a cloud kitchen
should be set up where there is high
demand for a particular food. Other
than that, sanitation, power, and water
supply are some of the things that
must be well taken care of.
2. Quality chefs and staff
The second but very crucial step is roping in quality chefs and staff to manage the food and
operations. This must be followed by creating a website and tie-ups with online order and delivery platforms such as Zomato, Swiggy, Dunzo and Amazon to strengthen your online presence.
3. Kitchen Equipment & Marketing
Finally, licensing, kitchen equipment, raw material, packaging, and marketing are some of the things that need to be in place before plunging into the business that is challenging yet extremely lucrative.