10 reasons why Cloud kitchen business is better than restaurants
The advancement in technology and the ongoing pandemic have impacted the restaurant business big time. In fact, cloud kitchen model seems to be a better option to invest rather than restaurants. Why go the cloud kitchen model route, you would ask? Well, it is not only a quick way to launch a food business but also cheaper. The paperwork is less, and the launch can take place in a lesser amount of time.
Talking about the benefits of the cloud kitchen concept and what makes it a revolution in the future of the food industry, a cloud kitchen model’s focus is food delivery. It does not have a dine-in option and works on a delivery-only model. You can think of them as food factories where food is produced at a large scale and that too, every day.
Here is why cloud kitchens are the talk of the town and always stay ahead in the latest buzz in the food world:
1. Low operational cost :
When you compare it to restaurants, the cloud kitchen business has the advantage of running at a low operational cost. The first reason for such a low cost is less expenditure on the real estate rental.
Secondly, the cloud kitchen model does not need you to spend on the restaurant design or any kind of furniture since it does not have a customer facing area. All you need is a kitchen plan & kitchen equipments and you’re good to go. Moreover, the cloud kitchen concept does not even require you to keep up a large labor force.
2. Flexible Menu Options :
In a cloud kitchen setup, unlike a restaurant, the menu can be changed at a quicker notice. There is no need to spend on changing physical menus since it can be done digitally in minutes. If there seems to be a shortfall in a particular item, the menu can be immediately tweaked. In a restaurant model, the change is not as easy.
3. Data Tracking Advantage:
With the facility of being able to track data, technology helps you in scrapping the food items which are not in demand, thus, saving you on extra expenses and better menu optimization. You prepare food as per the demand of the customers and less wastage are seen.
4. Lower Selling Prices:
In a restaurant model, your food automatically ends up being more expensive because of the overhead expenses of running a restaurant. On the other hand, in a cloud kitchen business, you can have the food in a fair price range while being prepared in the best possible way. Popular food items can be made available to customers, without burning a hole in their pockets.
5. Maintaining Food Quality:
In a restaurant-style model, often restaurants are helplessly forced to compromise the quality of food owing to mounting overhead costs. On the other hand, cloud kitchens make sure that their food is of good quality. The cloud kitchen concept is solely based on providing good quality food to customers at reasonable prices.
6. One Roof, multiple Brands:
Unlike a restaurant model, the cloud kitchen model runs on a simple formula; one roof, many brands. Several brands can work under a roof and deliver varied cuisines to customers without spending a bomb on a location. In fact, in India, Kitchens Centre is one of the most popular cloud kitchen space-providers to new or existing food-delivery brands via it’s plug in play kitchen facilities.
7. More Efficient:
Cloud kitchens are more popular as compared to restaurants in terms of efficiency. During peak hours, it becomes difficult for restaurants to cater to both dine-in customers as well as delivery orders. However, since the cloud kitchen business focuses on the delivery-only model, they tend to be more efficient. The delivery process is faster and much easier.
8. Easy Expansion:
The best part about cloud kitchens is that it allows restaurant brands to easily increase their presence across geographies without spending too much on real estate.
In fact, Kitchens Centre, in just over a year has over 60 locations across 17 cities in India.
9. Change in Consumer Habits:
The concept of sitting in the comfort of one’s home is big plus. Thus, the number of people going to restaurants has significantly reduced. Due to this, the cloud kitchen concept has soared to greater heights and will continue to do so in the future as well. People have started liking eating at home more than going out, particularly during the pandemic. The restaurant culture is seeing a decline, and with the looks of it, it seems like it will remain that way.
10. Option to Experiment:
In a cloud kitchen setup, the scope of experimenting is much higher than any other food-based model. You can make some changes and immediately fall back to your older methods if one fails. Ideas can be adapted and scrapped very easily and with very less exposure.
All in all, cloud kitchens have far more benefits than the restaurant model. The pandemic has resulted in the increased popularity of these cloud kitchens. The food delivery industry has seen an exponential rise in the past couple of years. And with customers getting food at the touch of a fingertip, the cloud kitchen business is here to stay.