Has Covid-19 Pandemic Given A Fair Chance for the Growth of Cloud Kitchen in India?
The Indian food industry is quite huge and famous. It comprises restaurants, food outlets, street food outlets, a cloud kitchen, and a food and drinks bar. For sure you must have heard about cloud kitchen concepts in India before. But it has majorly grown into a successful business concept after the pandemic.
The Covid-19 pandemic has changed the scenario of many businesses in India and other parts of the world. A cloud or invisible kitchen is one of them.
Online Food Delivery Solution Concept in India
Commercially, the cloud kitchen is known as the cloud restaurant where only takeaway and food delivery concept is available for customers.
Here the customers cannot experience the dining joy because the cloud kitchen does not allow the customer to sit and take the pleasure of lunch or dinner.
It is basically a cloud concept that only works for delivering food. Yes, it does have a huge kitchen like a restaurant or a hotel kitchen, but the kitchen is only for the purpose of cooking food.
The owner here does not intend to serve food as regular restaurants do. Here the sole and only purpose is to cook and deliver, rather than cook, and serve or deliver.
The World Cloud kitchen market was estimated at 700 Million USD in the year 2018. The same is expected to grow at a CAGR of 17.25% from 2017-2030.
Why Cloud Kitchen Has a Fair Chance to Grow in India?
A Cloud kitchen has a fair chance to grow in India and the reasons are many. We shall discuss the reasons you understand why cloud kitchen or online kitchen has a great future for budding entrepreneurs and startup owners.
1. Limited Investment
The first thing that any entrepreneur would be worried about while launching his or her business is the investment part.
A large amount of investment can turn off any budding entrepreneur because gathering more and more investment is one of the dream tasks when you talk about the cloud kitchen concept, you do not need a lot of investment to start with.
Unlike the restaurant business, cloud kitchen can be easily set up with a low investment budget.
If you’re wondering why low investment for cloud kitchen when you need to maintain the same food quality for enhancing your customer base? To be very Frank, a restaurant needs to have more budget or investment because in the restaurant you are inviting the customers for the dining experience.
For the same you must take care of the interior as well as the exterior of your restaurant including the service staff.
Professionally managing the stove service stuff is one of the tedious tasks because you must train them for the food and beverages department.
Apart from the training cost, hiring the entire service staff including the waiters, captain, restaurant manager, security guard, etcetera needs a lot of amounts to be paid in terms of salary.
2. Quick Launch
Cloud kitchen is also going to be the future of the Indian film industry because it is one of the richest business model launches.
When you think of launching a restaurant hey you must take care of the construction part of the restaurant, hiring employees, lavish interior, furniture, and stuff, etc.
But when you are launching a cloud or online kitchen-all that matters is a good space for cooking food and few chefs who can take care of all the different cuisine departments for cooking and baking the best recipes.
3. Lesser Chances of Affording Losses
A restaurant model is a competition model. One single area or location has more than 30+ fine-dining restaurants in Ahmedabad, Delhi, or Mumbai. How would a restaurant business survive amidst the competition?
It seems nearly impossible unless you have good customer base and good food quality to serve. And, if by bad luck one must shut the restaurant down it brings in a lot of financial loss to the owner.
It is the reverse in the cloud kitchen concept. Here your food ordering solution is online and hence, due to less investment the chances of occurring losses are comparatively less than running a full-fledged restaurant.
4. More Profit
The concept of cloud kitchen delivers more profit because there are lesser expenses to bear. Here there are no expenses such as restaurant maintenance, furniture maintenance, electricity, valet parking rent, F&B staff salary, etc, and much more.
Hence, when you are running an online kitchen concept for your food ordering solution- you are entitled to earn more profits than bearing expenses or losses.
Looking at the benefits of investing in the cloud kitchen concept, one can easily assume its chances of growing in India. Indian audiences welcome new and novel concepts, here people are quite versatile and flexible with business ideas as well.
Hence, the concept of online ordering food delivery solutions shall grow larger than dine-in restaurants in the coming years. Of course, the pandemic has a major stake in allowing these concepts to grow.
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Prabhakar Mudaliar is the Digital Marketing Manager at DeOnDe who helps businesses in generating leads. His marketing skills and coordination abilities keep him ahead of the curve. He is passionate about Lead Generation, Designing and content marketing.