Have you ever wished that some secret admirer gets pizza delivered to your doorstep? Sure, it sounds funny, but who hasn’t?
Who isn’t fond of food?
It is exactly the reason there are numerous emerging opportunities for food entrepreneurs in the market. Want to run a successful business? Open a restaurant, and there you go!
HOLD ON! Opening a restaurant requires a lot of investment. What if an individual cannot afford the same? Therefore, here’s when one could think of Cloud Kitchens, also called virtual kitchens, shared kitchens, or ghost kitchens, for delivery-only purposes.
Delivery from a virtual kitchen holds a lot more advantages than delivery from a brick-and-mortar restaurant. What are these advantages? You’ll get to know as you read along!
This article entirely focuses on making you understand the working of a cloud kitchen, the most-used business models associated with the same, and the advantages of a cloud kitchen to a business. So, if you’re planning to set up your own food delivery business, here’s your shot to know everything about the concept.
Working of a Cloud Kitchen
As mentioned above, cloud kitchens are not dine-in areas. Instead, it consists of kitchen spaces shared by different brands. Any food ordered from the brands via food delivery applications gets delivered from these kitchens only.
Cloud kitchens are nothing like the old dine-in restaurants that focused on the seating facilities as well as the quality of the food. Therefore, instead of investing money in the infrastructure of the restaurant, the owner can instead invest in hiring a skilled workforce, quality food material, and more.
Due to being tech-enabled, cloud kitchens take complete advantage of the food delivery apps users use to order food. Cloud kitchen owners can either tie up with third-party food delivery apps or create one for their own services for a better user experience.
Types of Business Models
Let’s take a look at the top three business models highly being adopted by food entrepreneurs:
- Integration of Delivery Brand with Traditional Restaurant
It has become essential for every business to shift to a digital approach and develop a mobile application. Therefore, many traditional restaurant kitchens started building apps, and not only this, but they’ve started adding only-delivery brands to their existing business.
A restaurant can build a specialized menu for the delivery-only service or offer the same as it currently provides. Furthermore, they can also offer orders for pick-up from the location.
It is essential to mention that this model also has possible downsides. For instance, the delivery service may be less prioritized when the restaurant is buzzing with the crowd. Not only this, but it may also affect the restaurant’s atmosphere, as delivery people storm in and off the place.
- A Full- Fledged Virtual Kitchen
When a kitchen is dedicated to the cloud, which is a kitchen not having a pick-up location or storefront; it is what is called a cloud kitchen.
Sure, a virtual restaurant sounds like an independent space where food deliveries get prepared. However, in reality, food production happens alongside other virtual restaurants.
A question that might pop up in readers’ minds is, how do business owners run a virtual restaurant?
Well, it demands a licensed brand, a space to operate their kitchen, availability on a food delivery app, delivery supplies, and a coordinated workforce.
- Running a Cloud Kitchen
This business model involves running a cloud kitchen by acting as a landlord than one of the producers. The model requires you to maintain the property for others leasing the space, checking on security services, etc.
Benefits of a Cloud Kitchen to Businesses
Are you intrigued enough by the idea of operating a cloud kitchen? If not, here are the benefits it can reap your business:
- Low Costs
Restaurant operators have to look after staffing costs if they’re running a brick-and-mortar kitchen. However, on the other hand, cloud kitchens can take effective advantage of on-demand labor and least worry about the service staff.
- Layout Flexibility
In order to be profitable and increased demand, virtual kitchens should be able to quickly pack orders and deliver. Fortunately, the custom-build spaces and optimized processes make it a possible activity.
- Increased Efficiency
Operating multiple brands from a single kitchen can prep ingredients for different menus. Therefore, it accelerates the preparation speed and handing out the deliveries, making it an efficient process.
- Increased Brand Awareness
The virtual kitchen does not require a lot of marketing as they gain exposure via food delivery applications. Though a new service will have to build a name, it can be much cheaper than concentrating on full-fledged marketing.
Cloud Kitchen: The Future of Restaurants in a Nutshell
Cloud kitchens are offering a massive opportunity to businesses to run online restaurants, experiment with the food menu, save expenses, while developing brand awareness amongst customers.
Sure, having a mobile application for any business is necessary for offering an improved UX. The owners of the cloud kitchen delivery-only service can come up with one for higher profit and efficient working.
Are you hooked with the food industry and want to build an app to promote your cloud kitchen service? Stop holding yourself back and schedule a meeting with the professionals to get further insights on your idea.
WHY WAIT WHEN YOU CAN DO WONDERS?