When was the last time you actually visited a restaurant/hotel/motel to grab a meal? The now expanding Cloud Kitchen business is the new normal.
Considering these times, the answer is pretty predictable. Even before COVID19, many of you might have changed the way of eating courses. Some people might prefer going out in the open air and have a delicious snack under the sky. On the other hand, some might just love watching Netflix, chilling and devouring the delicious meal ordered at home delivered within few minutes. All of this can be leisurely done just tapping on the screen with your fingertips.
According to research, 46% people in UK order food online. This shows how the food delivery business has grown and how it still has potential to grow. Nearly 81% of consumers order food and vegetables via apps because it is convenient for them.
What exactly is cloud kitchen?
A cloud kitchen is just a space, which has no dines/tables or seating facility. It thrives solely on home delivery orders or third party orders which is placed through the website by customers. The restaurant owner can use any number of food brands. This service has surged forward with impeccable amount of attention from customers. This business has shown a greater growth rate even before the pandemic.
Cloud Kitchen giants in India
Let us dive into some of the established food businesses in India:
It is the currently the biggest cloud kitchen in India, founded in 2014. It made 25-28 millions of order per month, it is known as the fastest growing company in food delivery.
It was first founded in Delhi, India and now has spread across almost 25 countries. Customers rely on other customer's ratings and reviews while ordering. This feature has made the industry grow altogether.
It delivers in more than 15 states in India. It has an add-on feature which is to deliver the order free, if the food is not delivered within 30 minutes. This is to keep the customers satisfied.
It has included multiple payment methods with no minimum order requirement. The customer can order anything they want with no location constraints within the city.
Currently, Box8 is one of the fastest growing food delivery apps in Delhi, India. They define their selling agenda by keeping the taste desi. From paratha to lasagnas, desserts to chicken tandoori, you can have it all on Box8.
Travelkhana is a company which provides fresh food for Indian railway passengers. Many items can be delivered right at your seat. TravelKhana has now rown to have 1,200 vendors on its site.
The functions of Cloud Kitchen
Before directly jumping into the Cloud Kitchen Business, there are some basic functions one should be aware of. These functions are mostly managed digitally with minimal physical interaction. This qualifies as a techno-management service.
Assigning the orders to the particular sections:
After collecting the order data, you have to classify under which cook or food item it comes under. The software displays orders directly in the kitchen on a screen with the respective classification.
Hiring staff for the kitchen
This service needs huge number of Human Resources to get this business going. You need to have a qualitative approach while hiring cooks and delivery agents.
Marketing and advertising the Cloud Kitchen
As this service is online, the best marketing strategy can be online campaigning. Advertising and giving first deliveries free adds some realness in this fake world of business.
Management of vendors
There will be multiple vendors for all types of classifications. You have to keep on tracking the data on which vendor has got the highest ratings and responses from the customers, whose quality of services is worth keeping to yourself. You must also look for the perfect combinations of the suppliers for the ingredients.
Like every other business, this business too requires the need of managing the inventory and stock digitally. Everything has to be readily available the minute the customer places an order.
The Coming of age and future of Cloud Kitchen
With Swiggy being the first app in India in 2014 to $2-billion worth of food being ordered in 2018, India’s online food delivering services set up a mark in the market. This success rate is said to be higher in the coming years. According to industry research, the market is expected to grow by 2023, it could cross $15 billion.
Cloud kitchens have a very high chances to scale and develop in India. With all the other services going digital, people have got no free time to walk down to a restaurant or drive in a jam-packed traffic for food. This problem has been taken by the service providers.
The future of this particular business is as bright as the Sun. 40% of the population order food online everyday and nearly 15% mass order online once in a week. This will eventually grow and physical restaurants will be converted into Cloud Kitchens.
A positive thing about Cloud Kitchen which will help itself grow is the amount of risks is comparatively lower. The monetary constraints can be easily dealt as the digital platforms demands lower operational costs.
If the services focus on food more than the pleasing technology, the business is likely to grow. We all are alive because of the food we eat, not on fancy technology. Customers crave more, you provide more!