The advent of cloud technology facilitating online ordering has made cloud kitchens suddenly seem like the only logical thing to do to manage high rentals and poor margins.
Cloud kitchen or the digital restaurant is the latest trend that has quickly established itself in the restaurant space as a formidable restaurant format. With extreme competition in the restaurant space, high rentals, and rising costs, Cloud Kitchens seem like a smarter way to run the restaurant business.
What’s a Cloud Kitchen & How It Functions
A cloud kitchen is basically a restaurant kitchen that accepts incoming orders only through online ordering systems and offers no dine-in facility. They have a base kitchen that delivers food to the customers’ doorstep.
Cloud kitchens can have their online ordering website and online ordering app, or they can accept orders through the various food delivering platform.
Since the primary source of revenue for these internet restaurants is through the various food ordering platforms, such as Swiggy, FoodPanda, Zomato, etc., it is essential to have a Point of Sales software that accepts orders from multiple sources.
Why is opening a cloud kitchen a good idea?
Orders come in, meals are cooked, packed and then whisked immediately to their delivery locations by the assigned fleet. Why does this work?
Because you’re cutting costs on front-of-house activities and concentrating on your food. With the availability of third-party services and the growing comfort of mobile ordering, this model seems just right to experiment with.
Building cloud kitchens for Millennials & Gen Z
Cloud Kitchens and online food delivery are essentially meeting the needs of the younger generations which we call – millennials and Gen Z.
They value diversity, more choices, and urban living.
All one needs to start a cloud kitchen business
Starting a cloud kitchen involves various decisions. From the delivery areas and restaurant name to equipments, licensing and so much more.
So, in every step no matter how much small the effort might take, having a proper plan of action is necessary.