How cloud-kitchen plan brands?

Nusra Aug 23 2021 - 3 min read
How cloud-kitchen plan brands?
As per a report by Goldstein Research, the global cloud kitchen market was valued at USD 700 Million in 2018 and is expected to grow at a CAGR of 17.25% through the forecast period (2017-2030).

Cloud kitchen, dark-kitchen, ghost kitchen or we call it a delivery-only restaurant, is the new go-to model in food and restaurant sector. Not just in India, this is a global trend wherein more and more players are entering into the segment.  With only a kitchen where food is prepared for the delivery-only meals, it has seen a huge attraction from top investors globally. From angel investors to venture capitalists, all are taking a bite into this segment. All thanks to the never ending home dining trend due to the pandemic.

With no or limited store front or seating availability, the rent to sale ratio as compared to restaurants where it is 15-20% in restaurants, it is only 3 per cent in cloud kitchen. The cloud kitchen format gives the flexibility to launch more than one brand using the same kitchen infrastructure and resources. Hence, giving customers and entrepreneurs an opportunity to serve multi-cuisine from a single kitchen. And, as per experts, cloud kitchens are the future of the food industry, with top customer access, low cost of set-up and operations, and high profitability.

As per a report by Goldstein Research, the global cloud kitchen market was valued at USD 700 Million in 2018 and is expected to grow at a CAGR of 17.25% through the forecast period (2017-2030). But running a multi-brand kitchen is not everyone’s cup of tea. You need to have a right mix of brands, categories, cuisine to target the right set of customers in a area where you have pre-identified clientele. Here are top reasons according to experts on how you should choose brand, categories for a multi-brand cloud-kitchen set up.

The right-mix of customers: “We serve various missions which are influenced by customers,” shared Karan Singla of Rebel Foods by adding that this is what drives us to create brand. This is the advantage of multi-brands as we can touch the customer from various brands depending on his mood and need. Today, Rebel Foods operated across multi-cuisine from serving best biryanis, pizza to coffee all under one roof.

What’s the need: Brands are also created on the need of a customer. Whether he is eating with family wherein different people have different preferences, ordering food as a team wherein people want to gauge on a multi-cuisine menu, to friends who just want to do binge watching. And, in last one year we have seen so many multi-brand kitchen opening doors across India.

Single/ Double serve: Driven by the need of serving, cloud-kitchen brands plan new categories and offerings. For example we have seen brands like Lunchbox and Faasos serving meal options for one person, two people and for a complete family. That ways it is driven by the number of serving.

Regular Meals: Many a times you just don’t want to cook food at home and want to order something healthy, regular from outside. From a simple rajma bowl to a plate of aloo paratha with curd, that’ where these kind of brand enter into the whole game.

Indulgent/Occasional meals: These days celebrating a birthday, anniversary or just wanting to have a fine-dine experience does not require you to visit a luxury dining destination. It can be created at home. There are brands in the market that are delivering luxury and 5-star like experience at home.

Hence, we all know by this time that cloud-kitchen brands offers multiple profits, benefits as compared to a traditional brick and mortar business.

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