How to start a cloud kitchen business?

High start-up costs, regulation, and red tape are some of the factors that are changing the food industry across the world. And, India is no exception to this. Due to the pandemic, most restaurants across India have seen a reduced inflow of customers.

Cloud kitchens are one of the most successful small business ideas in the F&B sector in India. According to an industry report by RedSeer, there were around 5000 cloud kitchens in India in 2019. The sector is set to become a $3 billion industry by 2024, up from $400 million in 2019.

The business saw a huge boom after the Covid-19 pandemic, as more and more people started ordering food online after restrictions were lifted. In this article, we will tell you what a cloud kitchen is and what you should keep in mind before starting one.

What is a cloud kitchen?

It is a commercial kitchen space that provides facilities and services for food preparation to food businesses.

Cloud technology can facilitate online ordering at a lower cost. The number of cloud kitchens in India is expected to grow by more than 50% year over year, and is considered one of the most profitable small businesses.

How does a cloud kitchen work?

Unlike traditional restaurants, cloud kitchens allow food business operators to prepare and deliver food at minimal cost and overhead. It gives restaurants kitchen space but not the facility to serve food. There are 3 main reasons for the growth of cloud kitchens in India—convenience, choice, and cost.

Cloud kitchens can be in a warehouses with multiple workstations, stainless steel tables, and hood vents. They may have an online ordering website or app or they may accept orders through various food delivery platforms. Customers can order through their mobiles and get the food delivered to their homes or offices.