FAQ (Frequently asked questions)

Cloud Kitchen Exchange is a springboard for Food Entrepreneurs & Enterprises in India

We help New Food Entrepreneurs to start their food business, Enterprise brands to scale via Kitchens as a service model (Project X) & established brands to grow and scale their restaurant business via Project X Restaurants 

We also transform growth stage companies into professional organisations via our strategic advisory services and help them become efficient business machines 

Get in touch with us today to learn more

FAQ

What is Cloud kitchen concept ?

A cloud kitchen is a delivery-only restaurant that has no physical space for dine-in. It relies entirely on online orders placed through online food aggregators or an online ordering enabled website or mobile app.

If you wish to know how to open a cloud kitchen click here

Are Cloud kitchens a profitable business ? Why do cloud kitchens fail ?

Tough question but the top 20 percent of Cloud kitchens  make a lot of money.

Next 20 percent of cloud kitchens struggle to make money and rest 60 percent fail in a few months after starting.

If you are smart and were always the best of the herd in your past, go for it

If you want to know the recipe of a successful cloud kitchen click here 

I have a Cloud kitchen but it's not profitable, what should I do ?

Too little information but we hope you have a unique offering and not *I have a better mouse trap* concept

Schedule a call here, let’s hear you out other wise click here to know how to run a successful cloud kitchen

How do you run a cloud kitchen ?

cloud kitchen is a concept of delivery only restaurant with no physical space, no dine-in space or takeaway counter. It is a restaurant kitchen that accepts delivery only orders without a traditional restaurant or dining-in facility.

The orders are taken via Zomato / Swiggy / Website and delivered directly to customers via third party delivery services.

You can even make your website independent of Zomato and Swiggy and generate revenue via your own channels by clicking here 

How do Cloud kitchens make money ?

They are most profitable in high-rent neighborhoods in back alleys nearby with lower rent  where the need for expensive restaurant spaces is minimized while addressing demand for a specific dish in the area. Since the rent is largely subsidized and so is manpower, these kitchens make between 5-15% profits as a margin.

I run a kitchen from home, can I register on Zomato, Swiggy etc ?

Of course you can, if you wish to, but your Information needs to be corrected.

Uber eats sold itself out to zomato long back and food panda started making khichdi instead of delivering food (the khichdi project – google it)

So now you have two firms who will eat your greens out unless you build your own brand locally and find out a way to deliver to your customers without paying the hefty commissions

You need to be extremely smart to make money in this business, and if you are, jump in and we recommend that you get your own website to sell by clicking here 

How do I calculate my Break even point ?

Break even sales = fixed cost / contribution

Contribution = 100 percent – variable cost

Fixed costs = rent + salaries + fixed recurring Costs like annual maintenance contracts + telephone rental etc etc

Variable cost = food cost as a percentage + credit card charges + direct labour if any + commissions to aggregators

What are Co-working kitchens ?

Co-working kitchens are large spaces (1500-2000 Sq Feet) which are partitioned into smaller spaces (250-300 Sq feet) and leased out to different brands with common services and utilities in place (e.g. Exhaust, Gas, Electricity connections, Water connection, waterproofing, kitchen tiling and flooring) which saves a lot of CAPEX for a new Entrepreneur

What Licenses are required for a Cloud kitchen ?

FSSAI, GST, Trade license, Fire & Safety, Shops & Establishment license

How much does it cost to start a cloud kitchen ?

Depending upon what cuisine you wish to serve and the variety of equipments needed, a cloud kitchen can be started with an investment of anything between 4 lakhs to 15 Lakh rupees. This includes the rental deposit, advance rental, licenses, equipments, fitouts  and pre opening expenses.

You can learn more about how to start a cloud kitchen business by clicking here 

Why do cloud kitchens fail ?

Cloud kitchens require 90 percent work (strategizing, choosing cuisine, location, procurement, hiring, pricing, brand story, competition analysis etc) before they open in terms of planning and 10 percent work after opening and this is grossly misunderstood by a lot of people.

People jump in putting 10 percent thought initially thinking they will succeed because their *product is better* which is untrue because to stand out in middle of millions selling the same thing, you need to start right and then build.

What is the future of cloud kitchens ?

According to industry research, the market is expected to grow by 2023, it could cross $2 billion. The future of Cloud kitchen is endless to develop in India. With all the other services going digital, people have got no free time to walk down to a restaurant or drive-in jam-packed traffic for food

Do you do real estate search for us ?

Currently we only work with big enterprises for commercial real estate search on mandate as this is a chargeable service

You could contact us via WhatsApp if you are interested in this service 

What is Project X restaurants ?

Project X restaurants is a F&B consulting firm (subsidiary of Cloud kitchen exchange) and is a trusted partner & advisor of multiple medium and large enterprises and Food brands in India. We work with leaders in Food business and tackle their most important challenges on Strategy, Growth, Scale, Marketing, Organisational restructuring, Operations and Tech enablement 

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