With the outbreak of COVID, cloud kitchens became more popular and are now trending all over the food industry. Starting a cloud kitchen requires low setup costs, which is an important factor in its growth and popularity. However, starting a food business is no more expensive with the introduction of the cloud kitchen concept.
In addition, before starting a cloud kitchen in India you need to understand the cloud kitchen setup cost and the complexities in the market trend. Thus, if you want to know the cost breakdown to start a cloud kitchen in 2024, then here is a comprehensive guide on the budget you need to start a cloud kitchen in India.
Key Factors Influencing Cloud Kitchen Setup Cost in India
Cloud kitchens, also known as ghost kitchens, virtual kitchens, or delivery-only kitchens, come with the concept that there will be no dine-in option and cater to customers only through online delivery partners.
Moreover, cloud kitchen setup costs will be much lower than that of a proper dining restaurant as you need not focus on infrastructure and other things. However, cloud kitchen setup cost is variable as it depends on many things, such as the cuisine you want to serve, location, equipment, and many more.
Thus, here is the detailed cost breakdown of the cloud kitchen setup making it easy for you to invest and start a cloud kitchen.
Location Cost
As a specific location or infrastructure is not bound to a cloud kitchen, you can start it anywhere. However, if you have enough space at your home, then you could save your money. But, if not, then choose a location that is very feasible to reach your customers. The cost of your rent would depend on the city you reside in, which includes:-
- If you are in Mumbai or Bangalore, rent of 300-600 sq ft kitchen space would cost around 20,000 to 50000 per month. Along with this, you need to pay 1,00,000 to 2,00,000 in security deposits.
- If you live in tier II or tier III cities, then rent of 100-200 sq ft kitchen space would cost 8,000 to 12000 rupees with security deposits of 50000 to 1,00,000 rupees.
Legal Documentation Cost
Legal documentation is very important to run your cloud kitchen smoothly. Thus, cloud kitchen setup costs should also include the expenses during the legal formalities process. These are:-
- FSSAI: It costs around Rs 2000 to get an FSSAI License including the agent charges.
- Trademark registration: You need to pay Rs 6000 as an attorney fee to make your brand name secure.
- Municipal trade license: Around 1000 rupees need to be paid to get the trade license and start a business.
- No objection license: You need to pay Rs 1000 to get NOC from the fire department.
- Gas and electricity connection: To start a business you need a secure gas connection that would cost around Rs 5000 and an electricity connection costing around Rs 20000.
Kitchen Equipment And Machinery Cost
The kitchen is a crucial aspect in the success of the cloud kitchen business; thus, equipping the kitchen with efficient equipment is necessary. Thus, you need to invest in high quality kitchen equipment as it will enhance productivity and increase profits. However, the cloud kitchen setup cost depends on the type of equipment you need for your food cuisine. It involves:-
- To have a basic setup for your cloud kitchen, you need an Indian gas burner, a Chinese burner, and steel cooking counters. These will cost around Rs 60,000 to Rs 70,000.
- To have an advanced setup or if you are going to sell bakery items, you need specific equipment that would cost around Rs 12,000 to lakhs, depending on the type and quality of equipment. If you want to sell tandoor items, then the additional cost of Rs 10,000 for tandoor will add up.
However, you may cut the cost by purchasing second-hand equipment for your kitchen.
Raw Materials And Packaging Cost
To start the cloud kitchen, you need raw materials to start the operations. For the starting days of your business, it’s smart to stock a small quantity of raw materials. Your budget for raw materials is variable according to the food cuisine, but for a start, it can cost around Rs 20000. Moreover, you need good quality packaging material as it will advertise your business. Thus, you need to invest in containers, sachets, stickers, and other items that would cost you around Rs 40,000 to Rs 60,000.
Staffs And Chefs
You need some ground working staff and one experienced chef who will cook all your food as per the menu. However, experienced chefs may charge you more. Thus, you need to spend Rs 15000 to Rs 20000 per month on your cloud kitchen staff.
Marketing Cost
Marketing is very important to grow your business. Thus, you should have an effective marketing strategy to advertise your cloud kitchen and enhance customer flow. You need to go for digital marketing to attract the target customer, which would cost around Rs 30,000 to Rs 80,000. However, to save your marketing cost, you need to our a lot of effort and focus on your online presence to attract your customers.
Conclusion
Cloud kitchen is the trending food business concept everyone is opting for these days as the business requires very little investment as compared to the fully-fledged restaurant business.
Moreover, if you want to invest in the cloud kitchen and want to know the cloud kitchen setup cost in detail, then this is a comprehensive cost breakdown on every step you need to start your business. Estimating the investment, you need to invest around 10-11 lakhs to set up and market your cloud kitchen. However, you may customize the cloud kitchen setup cost as per your business needs.
