5 Hacks for Starting a Cloud Kitchen Under Rs. 5 lacsAug 26
Cloud kitchens have a great potential in the Hospitality industry, especially when the concept is focused on leveraging the assets for multiple sales channels. If you have a knack towards cooking, beginning with start a cloud kitchen business is a superb idea. You might be wondering about the cost required for starting a cloud kitchen.
Starting A Cloud Kitchen?
You do not need to worry much about it because it is fairly possible to starting a cloud kitchen only under Rs. 5 lacs. We have been in the industry for a long time and the idea to start a low-cost cloud kitchen is fairly a researched model. You will read below about the five practically feasible hacks. These will help you get high profits with a limited cost of operation
1. Get a Flying Starting a cloud kitchen with Co-working
Co-working refers to sharing the space at a rental property. People prefer to do it with the purpose of reducing the costs by sharing the rent. This concept was started long back by multinational companies during the dark times of the 2008 recession. They did it to share the space during transport. Different multinational brands managed to adjust their goods in each other’s transport vehicles if some room was available. This has become more concrete now with increased rental prices. Co-working cloud kitchen can be very well utilized for making profits to start a cloud kitchen in low-investment.
For starting a cloud kitchen in co-working, find out the location of your choice in the nearby areas first. The very first thing that you need to do is start searching for kitchens that are available in the locations where you desire to establish your business. Once you find it, then start approaching their owners for a lucrative B2B proposal. Maybe half of them only agree to meet you but don’t lose hope. Create an impressive brand presentation to show them the benefits of co-working cloud kitchen.
Some of the common advantages of co-working cloud kitchen are:
- The reduction of costs is up to half or lesser than half. The sharing of the rent depends on the area available with one of the owners. It can be 50:50, 60:40, etc. This way it would be fair to both.
- The second advantage is that the two cloud kitchens working together can share their resources if necessary, for example, all the ingredients may not be available with every restaurant all the time. Cloud kitchens in co-working can share their resources.
- Co-workers can afford high-tech gadgets for security which otherwise may not be affordable for a single owner. Hence you can start a cloud kitchen business with adopting co-working model immediately.
- There can be common staff members. For example, the receptionist can co-ordinate the delivery of the order to the representative of the delivery app for both the cloud kitchens working under the roof. Co-workers of cloud kitchens can share their salary instead of keeping different staff members who would occupy more space. This is how space would be utilized better for starting a cloud kitchen.
- The major costs while co-working will be one month deposit and the rent of the running month.
- Around 80 to 90% of the premises of the cloud kitchen would be ready for you. You need to make least investment while you starting a cloud kitchen .
- You will get the preparation area for the kitchen, storage refrigeration area, and other necessary resources.
The generation of business can be with the help of Food Delivery Apps when you plan of starting a cloud kitchen business. The trend of co-working is rapidly growing in India in various industries. It’s time for you to encash this opportunity. The investment would be around 2 to 3 lacs only. Isn’t it a great idea for a low-cost cloud kitchen!
2. Acquire a settled cloud kitchen
Acquisitions and joint ventures while you starting a cloud kitchen are pretty common in the corporate world. How about acquiring a Cloud Kitchen? If you have been planning for starting a cloud kitchen you must have some savings to invest in. This is one of the best time periods, to begin with, the industry of cloud kitchens. Due to the outbreak of COVID-19, many business owners have given up on their businesses.
Here here, 20 easy steps to start a cloud kitchen
It is easy to get the rental space according to your priorities as far as location is concerned. We suggest you acquire an already established cloud kitchen because people are not ordering much food from outside and everybody cannot cope up with high rent and other costs without many orders. This is the golden opportunity to launch your cloud kitchen with great innovations. Here are the steps:
- You must publicize that you follow all the guidelines issued by the government while cooking in the cloud kitchen.
- Post videos on Social Media marketing to show how frequently you sanitize your kitchen and wash all the eatables with saltwater.
- Tell people about no human contact during the packaging of food items with chefs with their masks on while cooking. You will get various benefits.
You do not need to invest in the equipment setup which covers around 40% of the cost for starting a cloud kitchen. The investment is around 3 to 4 lacs for the other necessary resources. Please note that this amount may vary depending upon the area covered in the kitchen. It can be more with more area. It is realistic for a low-cost cloud kitchen.
You can also save the cost and time by utilizing the services of the staff members who were already working there. You can make them take a little lesser salary because otherwise, they would lose their jobs. This is the time when everybody is in the need of something or anything instead of nothing. So there are high possibilities that 60-80% of the staff members will be retained by you on your conditions when you start a cloud kitchen.
You need not go to multiple places and acquire different resources for the cloud kitchen equipment setup. This would save you and your team from the virus. The experience of the staff members will also be an added advantage if you are a newbie in the cloud kitchen business.
3. Sharing the Kitchen Space
Sharing the space in somebody’s kitchen can also be one of the great ideas starting a cloud kitchen. There are many catering companies who are or who can be interested in cloud kitchen sharing. This might not be easy for you but if it gets successful, it can help you launch your dream kitchen.
Not many catering companies might be interested but put a little effort. You must look for the owner of a cloud kitchen who is not in your competition for mutual benefit, for example: if you deal in snacks the owner of the cloud kitchen must deal in regular meals. Show them at least five important reasons that they should help you in process of starting a cloud kitchen with shared space. The ultimate motive of everybody in the business is to earn profits. Make sure you choose some owner who has kitchen equipment in spare.
These days due to COVID 19, it would be easy because many people have big places for serving more people. They are sure to have more equipment than necessary. The iron is hot, it’s time to hit at the right place and get an agreement signed for a year.
Check out what you must do step by step for starting a cloud kitchen with shared space:
- First of all, prove that you really have the potential to establish your brand name with the help of delicious cooking. If you can be successful in this, he would help you for starting a cloud kitchen happily.
- The second step is to convince the owner of the cloud kitchen that you would maintain the hygiene standards and work with the ethics.
- Then give him the confidence of better coordination with the other staff members. It is also possible that the kitchen equipment is divided into two parts.
- Make him understand that he can get a good amount of money only by sharing his equipment that otherwise might not be getting used. This will enable cloud kitchen sharing business idea possible.
Nothing else can be better for you than sharing the space because you only need to invest in the chef(s), his supporting staff, and raw material for cooking. It will hardly cost around 3-4 lacs, to begin with. The major investment would be in marketing the low-cost cloud kitchen.
You may need to invest in some equipment according to your cuisine that might not be available at the kitchen space you are taking on rent. You will be able to get the storage area, the management desk, cleaning area, refrigeration area, and all other arrangements without any hassles.
This time and energy can be utilized in the creative marketing of the cloud kitchen because there is a huge competition online. If you can manage all these things there is nothing that can stop you for starting a cloud kitchen business and run it in a highly successful manner. You must offer a lucrative amount of rent or profit share to the owner of the established cloud kitchen to let you start a cloud kitchen.
4. Invest in Cloud Kitchen Franchise Business
Cloud Kitchen Franchise business is a very popular form of business. It is one of the most promising business ideas. The franchise provider will help you with making the business plan, arranging the license, doing the market research, informing you about the equipment, etc. The only thing that you need to find out is the right franchise business partner.
One of the well-known names in the cloud kitchen industry who can help you the best starting a cloud kitchen business is DNY Hospitality. We have been in the industry for more than 15 years. We provide absolute guidance in starting a cloud kitchen business. We also specialize as a cloud kitchen brand franchise.
You are most welcome to learn from our knowledge and experience. We are rated as one of the Top Restaurant & Cloud Kitchen Consulting Companies. We have catered to more than 210 successful projects in 15 years. More than 65 cloud kitchens have been designed under our consultation out of the 210 projects.
What Are The benefits of Opting for a franchisee of a reputed brand?
- No research on the equipment according to the latest trends is required. Your franchise provider will educate you on this. This will help you in starting a cloud kitchen business in proper timeline.
- The investment of 7.5 lacs is a well-calculated amount for the entire investment that includes all small and big investments.
- You get an on-going operational, training and quality support form the brand. Its much better than starting a cloud kitchen brand on own, and run it on own.
- It is a one-time investment for the coming decades. You can operate in the first 20 outlets, to begin with; only with this small amount of 7.5 – 8 lacs.
- The brand takes care of marketing activities in-house. Therefore, you don’t need to invest a lot of money in marketing.
- We will provide you with complete consultation that will help you at every step. Our team is with you from the first step of applying for the license to taking your first order.
5. Starting a Cloud Kitchen as a Home-Based business
A home-based cloud kitchen is the most convenient way of starting a cloud kitchen business for home-entrepreneurs and Home-makers. It is one of the easiest and fastest ways to launch a cloud kitchen. You only need to have one food license (FSSAI) that can be arranged in 10 days. You need the proper equipment to start a Home-Based Commercial Kitchen, as it cannot work with household utensils.
The most important part is a right guidance for a proper step by step procedure. The overall cost is not more than 2-3 lacs. For any kind of guidance, DNY Hospitality is on its toes to help you. There are different apps to start delivering food and platforms on social media to promote your cloud kitchen. The social media channels include Twitter, Facebook, LinkedIn, etc. These are extremely helpful to start a cloud kitchen or any other business quickly.
The benefits to starting a cloud kitchen from home are as below-
- You can take early morning or late-night orders if you know cooking.
- You don’t need to arrange for cleaning staff separately because the cleaning staff is already available for your household.
- No need to pay commercial rates to the cleaning staff.
- No worries about paying rent according to the commercial property because it is your house.
- You will also be able to save your transport expenses since you don’t have to travel anywhere.
- You don’t have to invest in office furniture separately because the entire furniture is already available at home and you can provide it for the staff.
- The amount of running capital for 3 to 6 months to achieve your sales targets can get much higher. Because you will have saved a lot of money while working from a home-based cloud kitchen.
Every black cloud has a silver lining. This COVID phase also has some opportunities. One only needs to identify them. One such opportunity is for starting a cloud kitchen. Since the government has not permitted the dine-in restaurants and hotels to operate to enable social distancing, they have to convert themselves as a cloud kitchen and deliver food at home. You must utilize it well because people now opt for food delivery.
You can introduce some innovative food items that would be welcomed by people because they need something different that can add spice to their lives. Everybody is frustrated by sitting at home. Some innovative food items can be of great help for them to rejuvenate as we are going through tough times. With this small attempts to gain happiness can even work in the long run.