This article is written by Preeti Pallavi Jena, from the school of law, KIIT University, Odisha. This article talks about the trending cloud kitchen and its advantages, disadvantages.

Introduction 

India is developing hugely in recent years and many new techniques are coming nowadays. People have started buying things through an online platform. Similarly, a cloud kitchen took place. Cloud kitchen means the kitchen where the food is baked and then such food is delivered to the houses when someone places an order either through online ordering or by calling. This has a good impact in India. People are preferring this because most people don’t have the time to go outside again to have food after a long hectic day. This is a suitable process for them; they can have their food on their doorstep without even going out. These cloud kitchens don’t have to invest their money in impressing people by the dining setup, well-mannered staff. The only concerning criteria are the taste of food and tieing up with ordering portals of food for easier service. This reduces the cost also and makes it easier and beneficial for them. Nowadays people actually prefer more ordering from the delivery apps like Zomato and Swiggy. Even children appreciate it and know about these online food delivery services.

Cloud kitchen a wiser choice

Though cloud kitchen has started recently. But it is constantly showing its growth. There is low risk in this and it definitely gains more profits. Cloud kitchens don’t need to be worried about the dining service and also the ambiance. It is also known as Ghost Kitchens. It is only concerned with food quality and its delivery services. According to the research, around 81% of people order food online in India. There are around 317 cloud kitchens in India. As per the industry research, markets will grow around 15 billion by the year 2023.

Reasons for Opting for Cloud Kitchen

• At the same place, more brands

Cloud kitchen has more than one brand under a single kitchen like if you are serving Indian foods from your restaurant to the people and you also want to add Chinese and Continental food then instead of adding it to the same menu, you can create a separate place for this brand so that receivers or customers will feel it to be authentic in nature. But actually, you can use your same chef for doing the Chinese and Continental food also in your kitchen and no one will ever know if the taste remains good. This actually makes it cost-effective and reduces your burden. In this way, customers can taste your brand and if they appreciate it, they would be given ratings and delivery from your kitchen will gain more profit through this.

• Food is the main priority

In a cloud kitchen, nothing is more important than food because you don’t need to be worried about the place, how to decor the dining, no tension about the arrangements of tables. You only need to provide a better quality of the food which will be appreciated by people. You can maintain the menu by giving appropriate names and decide delicious food dishes which will be liked more, you can also experiment by preparing more and different dishes. Once you get the feedback from the buyers you can improve what went wrong and can also see what they are preferring. This feedback can make progress and grow your business.

• More orders and less space

In a cloud kitchen, you can have a small kitchen with some reasonable cost rent and with less staff in it with a lesser space area. But if your food quality is amazing and people start knowing you more, you will be highlighted and will definitely have more delivery each day. This can be more effective because with the lesser investment you will have more profits with regard to this.

Disadvantages 

• The one and main disadvantage of cloud kitchens can be that with the increasing demand of this there will be more amount of competition which can create hurdles in achieving more profits.
• People are also becoming lazier due to this because they are not at all going outside and sitting in the same bed, which makes them more fat.
• Sometimes there are delays in delivery which also some people don’t prefer.
• Quality matters more and if the quality gets worse, no one will prefer it after that.

Online order and delivery process 

Cloud kitchens are only concerned with the orders, hence it is necessary for creating a delivery platform for it. Nowadays many restaurants are tying up with food delivery sites like Swiggy, Zomato, etc for reaching their food to the whole population of the state. For combining with these sites, it is a very quick process. It is done by filling in the necessary details on their websites and then they say you to provide some percentage of commission which can be from 7% to 30% as per each order. Your order capability will be increased only by the reviews of the regular and loyal customers. By adding pictures on the website of the food items it attracts the customers more. This can make you more trustworthy and easier for connecting your food items to the relevant customers.

Staff 

In a cloud kitchen, more experienced staff would be needed who will be able to complete each day’s orders in time without any delay and stress. If your business is growing more, then more staff will be required, like the chefs, helpers for them. If there’s a better understanding between the staff of the kitchen, then smoothly everyone will go on track and this will make your business grow more and more. You can provide them with some bonus charges on occasions or for their hard-working. This can motivate them to do their job with more potential. You can also provide them a free meal if possible and create trust with them so that they don’t leave your kitchen and will be loyal and try to do their best each and every time and will never let you down.

Packaging

As we know that cloud kitchen saves from monetary expenses. Hence, you can make packaging more beautiful by spending some extra amount of money like you can make your packaging material unique, create more designs in your packaging. This can impress customers and make them happy for ordering more from your kitchen.

Marketing

Cloud kitchens are not known to everyone in the online platform as compared to offline restaurants. Hence, it is necessary for making your kitchen to be known to more people on online platforms. This can be done through various social media networking sites like Facebook, Instagram. You can create a page on Instagram and keep on giving updates regarding the new dishes which are added, discounts, and offers that are given. This makes people try your food more.

Needs for running a Cloud Kitchen

People prefer cloud kitchen establishments more because it is easier than normal restaurants. It requires lesser investments for the startup and also for maintaining it. New beginners prefer it more. The main need of a cloud kitchen is the proper location.

Location 

When you start up a business with regard to the delivery of food, location is much concerned. You need to select such area, where people will prefer to order your food if you serve in a locality where people want cloud kitchen but in that location, there is not a single one, then definitely there will be a lesser competitor and you will be earning money and can be more known among such locality and after establishing properly people will know you more and your demand will keep on increasing. Since in a cloud kitchen, there will obviously be more order as compared to the normal restaurants. Hence, you have to find a place where there will be proper electricity and water supply. They also need to have licences such as from FSSAI license and GST registration within a period of time.

Main kitchens in India 

• Zomato was established first in Delhi and now it is growing more and has almost become available and spread around 25 more countries. The customers prefer using this and depend on the ratings in case of ordering. This made our country grow more in the field of industry.
• Swiggy is also one of the biggest cloud kitchens in India which have been in current trend and were established in 2014. This is one of the largest and fastest companies in food delivery. It takes around 25 million order deliveries per month. This creates more profits and it also makes people’s life easier with good food in a minimum time period with better offers.
• Box8 is the fastest food delivery service app in Delhi. They sell their food by having a desi taste in their food. They provide every desi style of food like paratha, desserts, tandoori chicken, etc.

Functions of Cloud Kitchen 

• Once after getting the orders, distribution to the chefs for cooking is essential.
• The next task is hiring staff required for the kitchen, for the purpose of cooking as well as for delivery agents.
• Then you need to advertise your restaurant socially.
• Management of dishes must be done so that no hurry at the last time.

Impact of cloud kitchen’s in this COVID-19 Pandemic

The economic repercussions of the COVID-19 pandemic have been felt widely throughout our nation. There is rarely any industry that has not been affected adversely by the pandemic. One of the worst-hit sectors is that of the food service industries. In the times of the pandemic, almost every restaurant was shut down and the food delivery rate had declined drastically. Cloud-kitchen based brands faced nothing different. In the initial phases where strict lockdown had been imposed, no food delivery service was permitted. So, the cloud-kitchen based brands experienced a brief shutdown. 

After a period of about 3 months, the strict lockdown rules were eased, and food delivery resumed. The cloud kitchens still faced a lot of challenges in form of supply chain disruptions along with misinformation about the spread of COVID-19 through food delivered by vendors. Gradually, the number of incoming orders from customers picked up the pace but it was undeniable that the ordering trends had changed. Earlier, the primary factor of order selection was the discount of the prices of the food items. Sanitation and hygiene had replaced it to take the spot as the most significant factor which determined the number of incoming orders. Major cloud-kitchen based brands like Zomato and Swiggy had to step up their safety measures and make sure that their partners maintain the same level of hygiene throughout food preparation.

Cloud-kitchen based brands had to be quick to adopt this changed reality and focus on convincing their customers that they follow the safety measures all along the way. Apart from the factors determining the restaurants from which food is ordered, the type of food being ordered has also seen a significant change. With most people working from home, family members have come together and there has been a rise in the number of family celebrations. This has resulted in an upsurge in the family or combo types of orders. A rise in fitness and healthy food items could also be seen during the pandemic. 

Conclusion 

During the current COVID-19 scenario, cloud kitchens that had emphasized cleanliness and safety from food preparation to delivery have an upper hand in surviving these hard times. Others need to ramp up their practices to cope with the effects of the pandemic. They need to understand the demands of the people, reshape their business strategies and work towards building a sense of trust among their customers. Hence, a cloud kitchen that understands and meets all the consumer needs will eventually prosper.

References 

• https://www.livemint.com/news/india/why-cloud-kitchen-business-in-india-may-grow-5-times-in-5-years-11594016540665.html
• https://www.rediff.com/business/special/cloud-kitchens-the-future-of-indias-food-biz/20200727.htm
• https://www.cnbctv18.com/business/how-cloud-kitchens-are-transforming-the-future-of-food-industry-7102791.htm
• https://www.entrepreneur.com/article/355662
• https://startuptalky.com/future-cloud-kitchen/
• https://www.mukundafoods.com/portfolio-item/blog-are-cloud-kitchens-the-definitive-future/

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