How are cloud kitchen business models more profitable?

The concept of cloud kitchens or delivery-only restaurants is gaining traction in India. As per the projection by Redseer Management Consulting, the cloud kitchens in the country is expected to grow from $400 million in 2019 to a $2 billion industry by 2024.

5 top reasons that make a cloud kitchen model more profitable

Let’s delve deep into the major reasons that make the cloud kitchens a lucrative business model.

Location –

No more worries about setting up your food venture in a posh location or paying huge rentals. The best part of a cloud kitchen business model is that you can start the establishment anywhere as long as you can provide timely food delivery to your customers.

Reduced labour costs –

Unlike traditional restaurants, there’s absolutely no need to invest in front-of-the house staff, servers and busboys. All you need is kitchen staffs and a few delivery boys.

Scalability –

It’s pretty easy to scale your cloud kitchen business. Just by setting up a kitchen, you can expand your cloud kitchen business to any other location.

More efficient –

In this platform, you receive customer orders from multiple sources such as your website, call centres and social media networks. However, with India’s leading digital, cloud based restaurant management software Inresto POS, now manage any number of orders effortlessly with no hassles at all.

More safe option for customers –

Post the outbreak of Covid-19 diners has become quite hesitant to visit restaurants. The survey results by PIPLSAY shows that 85% of the Indian consumers prefer to buy goods online rather than visiting brick-and-mortar stores.  However, with a cloud kitchen, customers don’t have to worry about contracting the infection. Now, they can order food from the comfort of their homes. The option of contactless delivery provided by cloud kitchen establishments makes it a totally safe option.

Parting Words

In the new normal, restaurateurs are battling with the challenges posed by Covid-19. The cloud kitchen is a quite profitable model, which is quite relevant in the present times. It has proved to be beneficial for both restaurants as well as the hygiene conscious customers.