Cloud Kitchen India

Planning to start your Cloud Kitchen? Here are the things you need to know

What is the point of having a dine-in restaurant when the majority of people love to get their food delivered at home?

The growth in technology has changed every aspect of human life. Now, it’s hard, not to find technology in anything that human needs.

From education to health, or from finance to agriculture, Technology has deepened its roots in every walk of life.

The same is the case with the food sector. Growth in the food-tech sector has been exponential over time.

And this growth has attracted many investors. Between 2014 to H1 2019 total funding raised by food tech startups is $2.93 Billion.

Nobody could have ever imagined such growth a few years back.

Things you need to know before starting your Cloud Kitchen

Back in the days, people used to go out and eat with their family and friends to have a good time. But with 24×7 digital jobs, people prefer to stay indoors. Now, they just call and get their food delivered at home.

Such consumer behavior was the reason Cloud Kitchen originated. And now, the Indian Cloud Kitchen market opportunity by 2023 is forecasted to reach $1.05 Billion.

What is a Cloud Kitchen & How Does It Work?

A Cloud Kitchen is fundamentally a restaurant kitchen that accepts customer orders online and provides no dine-in facility for customers.

In short, a cloud kitchen is a kitchen that delivers food to the customer’s doorstep.

The majority of the cloud kitchens receive orders through their mobile app or website or via various food delivery platforms (Zomato, Swiggy, etc.).

Some Examples of Cloud Kitchens are Faasos, Curefit, Box8, etc.

Faasos

It is a Pune based startup, founded in 2010.

Founders- Jaydeep Barman, Kallol Banerjee

Total funding- $281.5 Million

Curefit

It is a Bangalore based startup, founded in 2016.

Founders- Ankit Nagori, Mukesh Bansal

Total funding- $294.6 Million

Box8

Box8 is a Mumbai based startup, founded in 2011.

Founders-Amit Raj, Anshul Gupta

Total funding- $34.9 Million

Twigly

Twigly is a Gurgaon based startup, founded in 2015.

Founders- Naresh Kumar Kachhi, Rohan Dayal, Sonal Minhas

Total funding- $955.3K

Reasons For The Growth of Cloud Kitchen in India

Changes in consumer behavior led to the rise of Cloud Kitchen.

And when compared to the conventional dine-in restaurants, a cloud kitchen generates much revenue.

How much does it cost to set up a Cloud Kitchen in India?

As stated above, a cloud kitchen requires 3.05x times less capital than opening a conventional restaurant in India.

But have a look at this detailed segmentation of capital required to set up a cloud kitchen in India.

Costing is divided into two categories

  • For Operations
  • For Marketing and sales

For Operations

The operations part includes rent, licenses, Kitchen and equipment, and staff.

Rent-It majorly depends on the location and land prices. Space of 800 Sq. Ft (Rs. 25,000-Rs. 40,000) is sufficient to operate a cloud kitchen.

Licenses– Some necessary licenses to open a cloud kitchen are Health Trade License, FSSAI, Tax Registration License, etc. And it would require Rs. 15000-Rs. 18000 to get these licenses.

Kitchen and Equipment– Rs. 5 Lakh-Rs.10 Lakh, and it mainly depends on the requirement.

Staff– Rs.40K-80K for Kitchen Staff.

For Marketing and Sales

This part includes Online customer acquisition, social media presence, branding, and packaging, PoS and inventory.

Online Custome Acquisition Cost (CAC)– Rs.40K – Rs.100K

Social Media Presence– Rs. 20K – Rs. 40K per month

Branding– Branding, and Packaging Cost Rs. 50K- Rs. 70K

PoS and Inventory– Rs. 4K – Rs. 5K per month

With this growth and less setup cost, Cloud Kitchen is the next big thing in the Indian Startup Ecosystem.

The StartupLab daily uploads news and articles related to the startup ecosystem in India. So, if you want to know about the Indian Startup Ecosystem, read our articles.

%d bloggers like this: