Explore Cloud Kitchen Business Models And Make Waves In The Food Industry

“Deliver-Only” is the new trend in the global food sector. While order fulfilment apps have dominated the industry for a significant time, ghost kitchens are getting popular now. Importantly, the Covid-19 pandemic affected the business operations of eateries. Cost-cutting measures became common due to lockdown measures and social distancing norms. 

Therefore, foodpreneurs decided to set up dark kitchens that function on a limited scale. Orders are taken online from customers, so they need not make any physical visits to a food outlet. Let us get to know more about the potential of Cloud Kitchen business models. 

Connecting Wealth And A Cloud Kitchen Business Model

Gross Merchandise Value (GMV)

It depends on the number of orders from users over a period. Generally, owners of a Cloud Kitchen will get bookings from individuals through phone. They can streamline all the current and new orders via an online mobile app. Techpreneurs have full freedom to fix the price of their food items based on the demand from users. 

Home delivery fees

With increasing fuel charges, entrepreneurs can pocket a door delivery fee from customers. It can be determined based on the areas of coverage, the date and time of orders, the distance covered by the logistics personnels, and the level of demand from food buffs. 

Order cancellation charges

Sometimes the schedule of customers may change. Hence, they will revoke their pre-placed orders. Similarly, entrepreneurs can levy a specific booking reversal fee. Generally, the rates vary depending on the time taken by a user to cancel. Techpreneurs can also charge cancellation charges equal to the value of the food item in case of retraction by customers after the preparation of the dish.

Clicks, Impressions, and Views from advertisements

It offers an extra source of revenue for entrepreneurs. They can promote the benefits of their business aggressively across email, instant messaging apps, and social media platforms.

Managers of a dark kitchen can attract their target audience based on their age group, gender, location, and tastes. They can choose either Cost Per Click (CPC) or Cost Per Thousand Impressions (CPM) as their promotional strategy. Cloud kitchen owners will benefit from a click-to-call button, flexible budgeting, a higher number of leads, and an increase in website visits.

Transaction processing charges

The volume of online payments continues to increase with every passing day. Further, cash usage is decreasing significantly. Techpreneurs can impose a negligible transaction processing fee when customers transfer money via credit and debit cards, e-wallets, and net banking. 

How are Cloud Kitchens shaping the future of the Food Sector?

The global cloud kitchen sector is predicted to cross a humongous value of $2.23 billion by 2027. This lucrative industry will grow by an annual rate of 13.4% for the next 6 years. Interestingly, China and India, the two most populated countries in the world, will generate the highest number of new ghost kitchens. 

Source of Data

Entrepreneurs can select 3 options, Commission-based Kitchens, Kitchen Pods, and Independent Kitchens. Based on their financial position, they can start a franchise or go standalone. This will help in decreasing the capital expenditure significantly.  

What are the key trends to watch out for in Cloud Kitchens?

• Increasing demand for international cuisines – Customers want to try out something new and satisfy their appetite. Therefore, foodpreneurs like you can specifically focus on cuisines like Chinese, Italian, Mexican, and Thai. In particular, the franchise model will work well as there is a greater chance of business expansion. 
• Partnerships with small and large restaurants – Unlike how food delivery apps partner with eateries across many regions, cloud kitchens are boosting their operational scope by teaming up with well-known restaurants. Accordingly, you can choose food truck owners, local outlets or national franchises. Eventually, this will help in the quick expansion of the business. 
• Sharing of spaces – Real estate prices are skyrocketing with every passing day. As a result, you will find it tough to buy a piece of property for starting a food retail business. Cloud Kitchens are a better option as there is no significant investment. 

Restaurants can break even by paying the rent for the usage of land. Interestingly, large eateries that have ample space for renting out their premises to dark kitchens. Hence, this offers advantages like an extra source of income and an increase in the brand value of the ghost kitchen. 

What are the must-have features in a Cloud Kitchen mobile app?

• Automatic acceptance of orders to ensure better conversion rates.

• Instant generation of reports reflecting the business performance. 

• An integrated feedback system to respond to reviews of users. 

• Multiple payment gateways for seamlessly processing transactions. 

• Real-time tracking of bookings via GPS for higher transparency. 

• Seamless menu management with options for addition and deletion.

• Separate section for sharing information about coupons and offers. 

• Storage of order history for better understanding of customers. 

• 24×7 technical assistance through email, live chat, and phone.

Wrapping Up

Above all, entrepreneurs like you must take steps for digital transformation. Importantly, this is essential to survive the cut-throat competition in the food retail industry. Besides that, obtaining operational licenses from authorities is needed to start a ghost kitchen.  

Regarding technology, Point of Sale (PoS) software is crucial to control day-to-day business operations. Ideally, aspiring cloud kitchen owners must purchase a cross-platform compatible solution. This will help in streamlining all the “Delivery-Only” activities. 

The PoS software would act as the focal point for order acceptance, sharing information with the kitchens, and tracking the progress of the food delivery executive. In the long run, it contributes to the amplification of revenue and scalability. 

With the dine-in tendency yet to be adopted by people due to the Covid-19 pandemic, it is a good chance for you to pocket heavy profits by launching a dark kitchen. Finally, determined foodpreneurs can give a call to AppDupe now and utilize the robustness of Cloud Kitchen business models. 

Switch To Cloud Kitchen Business Models And Increase Your Cash Flow

Connect on WhatsApp Book A Meeting With Our Team

Author

Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.