Cloud Kitchen: Your Beginners Guide to Success
Cloud kitchen is now beginning to be a trend in the restaurant industry due to the popularity of online ordering system. Many providers like Taker allows for many helpful features that make starting a cloud kitchen a profitable business. In this post, we will introduce you to the concept of cloud kitchen and how it can help you in your restaurant set-up. It can also make you restructure your current restaurant setting focusing on cloud kitchen operations.
Cloud Kitchen Simplified
Basically, a cloud kitchen is a restaurant set-up that only offers food delivery to its customers. Comparing it to full-service restaurants that have dining, drive-thru, function and delivery segments offered to its customers. The common set-up among cloud kitchens are the following:
- Online orders come in and they’re recorded by staff then forwards them to the kitchen
This is the first interaction between customers to your cloud kitchen and is done through orders made online, via mobile calls and telephone calls. The staff should make sure that the customer’s special instructions are recorded to avoid complaints later on.
- Orders are cooked immediately in the kitchen then prepared for packing
After the orders are received and confirmed, the staff will forward it to the kitchen personnel. Orders are then cooked and packed. The packing procedure is critical in the set-up of your cloud kitchen because the customer’s order should be complete with all the condiments and plastic utensils. Likewise, special instructions by customers should be followed in both the cooking and packing procedures.
- Delivery of orders is done by riders to the location of the customers
The rider then delivers the order to the customers in their location presenting the packed food meals to them and then engages the customers for possible repeat orders to your cloud kitchen. The important part of this last stage is that the rider should be able to represent well your cloud kitchen and its brand to the customers.
For more information on how to create a great online food delivery experience for your customers? Kindly read this post.
How cloud kitchens are operated?
Cloud kitchens are operated relying on its online ordering system for menu orders then foods are packed and delivered to the customer location. These simple operations of your cloud kitchen become its advantage comparing it with full-service restaurants. The following are the advantages of operating a cloud kitchen:
- Lower rental fees
You’re only renting a limited space for your kitchen and this provides for a lesser cost compared to renting a prime location with a large parking lot area for a full-service restaurant. You can have the option to rent a space that’s safe but has a lower rental fee near your target market.
- The start-up cost of investment is minimum with opportunities for expansion
To be able to start operating your own cloud kitchen you just need a minimum investment cost to establish and market your brand. Once you’re able to engage your target market and build a loyal customer base then you can expand to other locations. This will enable you to fund your expansion plans as well as sustaining your operation at the same time.
- Overhead cost savings
If you operate a full-service restaurant you’ll be hiring your dining staff to take customer’s orders and engage them. Your management team will normally be composed of 4 managers to oversee your daily operations on a shifting schedule. You need also to maintain your store interior so you’ll be buying decorations depending on occasions and seasons. With a cloud kitchen, you’ll only hire your kitchen personnel, delivery riders and a supervisor to help you in your operations. This will help you save on your overhead costs.
- Flexibility on your menu management and pricing
Since you’re operating a cloud kitchen the flexibility on your menu and pricing is always possible. You can add, improve and match your menu depending on the volume of demand your customers have in your menu. You can easily put variations to your menu compared to a full-service restaurant. Likewise, you can choose to lower your price but still gains a profit from your meals.
- Failure rate and cost are minimized for start-up in the business
In starting a business there’s no fail-proof method and assurance of your success along the way you may fail. With failure comes the business cost for start-up companies. This goes true to all business including your cloud kitchen. The only difference is that in our case, you can easily start over again and your cost will be at a minimum rate. Should you fail in your first try to your original target market and location you can easily relocate to new markets.
Some small cloud kitchen only needs a medium-sized truck in order for all of its equipment to be relocated. Since all equipment is for cooking and packing purposes so mobility is easy. Think of failing on your first try to a full-service restaurant the cost will be heavy and starting over again would entail another huge investment. If you want to test the market another way is a cloud kitchen operation.
What’s the future of your cloud kitchen in the restaurant industry?
It’s estimated that in the year 2023 the online food delivery market will be recording total revenue worth $137,596 million worldwide. Today is an opportunity to start building your own cloud kitchen brand and have a share of the revenue of the business. Take into consideration also of the fact that real estate is limited and its cost is rising each year. If you want to enter the food industry with a limited initial investment cloud kitchen is a viable option for you. You will have no problem with the rising cost of real estate because as you read already you will need a limited space for your operations.
We have given you already some of the basic information about having a cloud kitchen. This introductory blog allowed you to understand its operations and advantages for you, should you choose to start your own cloud kitchen operations. We are glad to be of help to you on your journey toward your new business endeavor.
If your restaurant is looking for an online ordering system