Cloud kitchens are a new concept in the food business that is rising exponentially. Amidst COVID-19, cloud kitchens became very popular as there was huge demand for online food delivery.
However, if you are looking for a low-cost startup, investing in a cloud kitchen is the best option. It requires minimal investment and maximum profit, making it the most reliable startup in India. Thus, if you want to know how to start a cloud kitchen under 2 lakh, this blog will help you.
What Is Cloud Kitchen And Its Benefits?
Cloud kitchen is also called a Ghost kitchen or virtual kitchen that works as a delivery-only restaurant. Moreover, the cloud kitchen doesn’t work physically as a has no dine-in option. Thus, there is no need to spend on extra space other than kitchen space, which is the best opportunity for entrepreneurs to start a food business at a low cost. In addition, there are many other benefits of cloud kitchen in India, including:-
- Low-cost startup: This is a low-cost startup as you don’t need to invest in infrastructure, in-house staff, serving equipment, and many others.
- Flexible menu: With cloud kitchen, You have the freedom to change or customise your menu whenever you want without spending money.
- Easy growth: As people are more active in the digital world, there are more chances to expand your cloud kitchen.
How To Start A Cloud Kitchen Under 2 Lakh
If you are looking to invest in and start a cloud kitchen but have no clue how to do so under 2 lakh, then here is a stepwise guide that will help you easily understand what you need to do to start the business.
Create a Business Plan
Before starting any food business, it’s important to create a business plan which will serve as a roadmap of what you want to do with your cloud kitchen and make you focus on what you want to achieve. Moreover, it’s important to plan your business around the budget of 2 lakh and have a clear vision of how to conduct the startup process.
Research And Analyse the Market
Your business will succeed when you have strong market research and know exactly what your customers want. Thus, it’s important to research the market to know who the target audience will be and what your competitors are doing. In addition, analyse the market and create your unique marketing strategies.
Legal Documentation
The most important thing to start any food business is to go through all the legal formalities to enable the smooth functioning of your cloud kitchen. Moreover, there are a few documents and licences you will need to start a cloud kitchen:-
- FSSAI
- Fire safety license
- Health and trade license
- No objection certificate
- GST registration is needed if your business turnover is INR 20 lakhs or more.
Kitchen Equipment
Kitchen equipment is the most important aspect of a cloud kitchen, as your entire business depends on your kitchen. Equipping your kitchen with high-quality equipment makes your kitchen more efficient and productive. Thus, invest in high-quality kitchen equipment. However, it’s important to plan the budget for kitchen equipment as your budget is 2 lakhs. In addition, there are a few important equipment you must have to start your cloud kitchen:-
- Hood
- Sinks, cutting area
- Cooking utensils and cooking stoves
- Stainless steel shelving
- Refrigerators, deep fryer, oven
Menu Selection And Hiring Staff
Select the menu according to the choice of your target audience and the demand for food in your area. In addition, it’s important to design your menu to attract your customers and have a niche, niche-specific menu. Moreover, once you decide on the menu, you can hire a chef who specialises in cooking the food on your menu. You will also need one helper who will assist the chef during the cooking process.
Selecting Online Delivery Partners
As Cloud Kitchen is a delivery-only food business, you need to partner with delivery partners or keep your own delivery drivers to ensure your food reaches customers. Moreover, many famous online delivery partners, such as Zomato, Swiggy, and others, take orders and deliver food from your cloud kitchen to your customers.
Cloud Kitchen Pos System
If you want smooth and efficient operative functioning of your cloud kitchen, it’s important to invest in a POS system that will manage all your orders. As Cloud Kitchen is solely an online business, it’s important to have a website with a POS system which will benefit your business on a large scale. In addition, you will need a mobile phone and a strong internet connection to receive orders.
Market Your Cloud Kitchen Business
Marketing your cloud kitchen business is important for its growth as there is no physical customer interaction. Thus, online marketing becomes a necessary aspect of your business. There are many ways you can market your cloud kitchen and make it popular among customers. It includes:-
- Create a social media handle for your cloud kitchen where you can connect with your target audience.
- Register your cloud kitchen on the listing and review sites of popular food websites.
- Display ads on different social media platforms, reaching out to the maximum number of customers.
- Try giving discounts, offers, and bonuses to your customers.
- Start loyalty programs that will make your customers order from your kitchen repeatedly.
- Distribute pamphlets in the local area along with your online order scanner to connect with your website.
- Make your food packaging attractive and print a QR scanner on the package.
- Make your social media handle more attractive by posting your best food photographs and videos to attract customers.
Conclusion
Starting a cloud kitchen might sound exciting and rewarding, but it requires efforts to establish the business in the market. However, Cloud Kitchen is a business where you invest minimally but get maximum profits.
If you are a beginner and want to know how to start a cloud kitchen under 2 lakh, then following the above steps will lead to a successful business. As a cloud kitchen doesn’t need to have a large space and infrastructure, you can easily build a setup under 2 lakh and get started.
