The cloud kitchen is a restaurant kitchen where incoming orders are accepted only via online ordering systems and no dining facilities are given. They have a kitchenette that provides food for customers at app platforms like Swiggy and Zomato.
Cloud kitchens may have their website and online ordering application available or accept orders from multiple food delivery networks. Since the primary source of revenue for these internet restaurants is through various food ordering platforms such as Swiggy, FoodPanda, Zomato, etc., it is essential to have a check-in system that keeps track of the deliveries and the volume the company generates from different platforms. This saves you the hassle at the end of the day, adding and weighing orders from other ordering systems.
This blog addresses the fundamentals of creating a cloud-kitchen business that is to be remembered. Without addressing these requirements, it can be challenging to maintain the business.
Table of Contents
Mandatory and Additional Licenses
For several reasons, it is necessary to obtain proper licenses and certification for opening a cloud kitchen. Secondly, the ordering of the licenses will save you from legal problems. Secondly, since customers can’t visit the outlet to search for hygiene, food safety, and preparation themselves, proper licensing gives them satisfaction. It would help if you advertised this on your website and marketing campaigns to persuade your consumers to buy high-quality food.
Additional Licenses: FSSAI, Shop & Store, GST registration, NOC Fire Department, etc. are key licences in which to set up a cloud kitchen. Before starting a food supply business, be sure to have these.
Even the brand name registration is very important to a cloud kitchen business. The business owner must apply for the logo, name, word mark, which consists of different colours, and even copyright the tagline to establish its unique identity on the market to protect the brand.
Trade License: Every organisation will need a commercial licence, and so will cloud cuisine. This can be achieved by providing all necessary documentation from the local municipal office. In addition to the costs, we might need additional money to finish the job. It is a one-time job and it’s kind of legal action that is compulsory.
FSSAI: The Indian Authority for Food Safety and Standards. For food-related enterprises in India, FSSAI Licenses are required and must be obtained on behalf of and ownership of the company. The term of licence can vary from 1 year to 5 years, and must be renewed before expiry. It is good to mention FSSAI on the packaging and invoice to build customer confidence in our offers.
GST: For all companies in India the GST registration is mandatory and it is also recommended that all relevant company taxes be submitted in due time. GST shall be submitted each week, each quarter and each year. GST also helps to obtain approved vendors by lowering the tax amount if the GST number is open to all parties. We will apply for a GST number when we open a bank account.
Fire and Safety License: It is not necessary to begin now, but to save you from future troubles is wonderful. This is part of the law and fire and human health agreements are obligatory in all places of work.
The main difference between a traditional and a cloud kitchen is location and land. A cloud kitchen needs no high standing and a prime location. Instead, it is easy to install into a 250–300 Sq Ft space, since no house front is available. The cost of running a cloud kitchen is significantly reduced.
The cloud cuisine can be relatively inaccessible, but the demand for a separate kitchen is highly significant for customers. Residential areas, market backsides, new car parks make a cloud kitchen place ideal. Instead, a communal kitchen can also be used because this helps to reduce the initial investment.
Kitchen Equipment & Packaging
The kitchen equipment depends on the kitchen type. A cloud kitchen is supplied with essential appliances – oven and stove, refrigerator, knives, etc. Here is a full list of kitchen appliances for the service of a food supplier.
The packaging is a key component of a food company going. Regardless of how good the product is, it will ultimately destroy the entire consumer experience and give the company a bad name. Packaging depends on the type of product. To ensure proper food packaging, you need plastic containers, bottles, spoons, etc.
Since there is no house front, in your cloud kitchen, you don’t need many people. You can easily open a shop for just 2 or 3 people who focused on preparing and distributing food. The same chef will prepare food for various brands when you have many kitchen brands. It is better to start with a small team and you can hire more workers as new orders increase.
Since there is staff, the business owner can maintain compliance with all applicable rules and laws. Professional tax registration, TDS, PF, payroll, and salary estimation are a key and essential part of the company.
Unfortunately, this is the last thing most cloud kitchen owners do because blue-collar workers don’t care about the payment of taxes and the provision of the fund. When you are serious about a long-term goal, the cycle must start from day 1 by opting for accounting and Online Accounting and Book-Keeping Services that includes maintaining salaries of staff. It helps the team on a long-term basis to build trust and friendly relations with all.
Generating Online Orders and Marketing
Only generate online orders for your cloud kitchen company once you have set up your kitchen and staff.
Since the kitchen in the cloud has no dining facilities and relies solely on food orders online and by phone, it is important to spend, at least in the initial days, on promoting the food delivery brand. In this situation, online marketing is essential without a shop without display boards and signage.
- Listing Your Cloud Kitchen On Online Food Aggregators
- Promoting Your Cloud Kitchen On Online Aggregators
- Social Media Marketing
- Search Engine Optimization
- Loyalty Programs And SMS & Email
While cloud kitchens involve low risk and high benefit, one should be alert to the competition ahead to make profits. The Cloud kitchen will be the next theme. If you plan to grow your company or start a food channel, the cloud kitchen is the safer and wiser alternative considering that you keep it compliant.