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Cloud Kitchen Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Cloud Kitchen Business Plan?

Writing a wholesale business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the whole business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Cloud kitchen menu:.

Highlight the cloud kitchen products or services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of cloud kitchen company you run and the name of it. You may specialize in one of the following cloud kitchen businesses:

• Single-brand cloud kitchen
• Multi-brand cloud kitchen
• Aggregator cloud kitchen
• Delivery-only restaurant
• Virtual restaurant
• Describe the legal structure of your cloud kitchen business, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established cloud kitchen business, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your cloud kitchen business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your menu:

Mention the cloud kitchen menu your business will offer. This list may include,

• Main courses

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Value-added Services

In short, this section of your cloud kitchen plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your cloud kitchen business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your cloud kitchen business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for a cloud kitchen, such as cooking equipment, food preparation equipment, refrigeration & storage, food holding & warming equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your wholesale business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your wholesale services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your cloud kitchen business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample cloud kitchen business plan will provide an idea for writing a successful cloud kitchen plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our cloud kitchen business plan pdf .

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Frequently asked questions, why do you need a cloud kitchen business plan.

A business plan is an essential tool for anyone looking to start or run a successful cloud kitchen business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your cloud kitchen business.

How to get funding for your cloud kitchen business?

There are several ways to get funding for your cloud kitchen business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your cloud kitchen business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your cloud kitchen business plan and outline your vision as you have in your mind.

What is the easiest way to write your cloud kitchen business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any cloud kitchen business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a cloud kitchen business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding. Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Business Plan Template For a Ghost Kitchen: Complete Guide

• February 24, 2023
• Food & Beverage

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your ghost kitchen, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in your ghost kitchen business plan. Use this template to create a complete, clear and solid business plan that get you funded.

1. Ghost Kitchen Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for your ghost kitchen?

The purpose of any business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or private grant

How to write your ghost kitchen’s executive summary?

Your ghost kitchen is not like a regular restaurant and hence, the information that goes into the business plan will differ slightly. You can always use a general layout that includes:

• Business overview : introduce your company and tell why you want to open a ghost kitchen. Speak about your menu and what problems they solve. Also, mention the location, target delivery partners, and the legal structure of your ghost kitchen.
• Market analysis : provide a deep market analysis that backs your decision to open a ghost kitchen. The market analysis will include information like who your competitors are, your strengths and weaknesses , target audience , food ordering trends, etc.
• People : mention who are the managers and why you have selected them along with their relevant industry experience in the food and restaurant industry. Also, speak about your staff requirements and the management hierarchy.
• Financial plan : how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? It is ideal to include a chart depicting your key financials such as revenue, gross profits, and net profit
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

Ghost Kitchen Financial Model

Download an expert-built 5-year Excel financial model for your business plan

2. Ghost Kitchen Business Overview

In this segment of your business plan, you will describe your ghost kitchen. Include the following information:

• What inspired you to go for a ghost kitchen business?
• What products you are offering and what problems do they solve?
• Who is your target audience?
• Where are you located and why did you select that location?
• What is your company structure and who are your key partners?

Let’s look at different subsections that you must include:

Start by explaining why you selected the business and what is your experience in the industry. It is okay to not have any experience. As long as you can show passion and as long as you can prove that your business is going to solve some problems, you are good to go. The two things that you must demonstrate are:

• Your passion for food & restaurant businesses
• Feasibility of the business

You may be passionate about cooking and/or you may have a professional culinary degree. Either way, as long as you can channel your knowledge, expertise, and passion in one direction, it will be a good start.

Feasibility will look into various aspects that include:

• The degree of competition you will face
• The popularity of online food ordering in your area
• Availability of the food delivery partners
• The type of food you are going to sell

For example, if you are living in the suburbs with closed-knit communities involved in more social exchanges and family and/or community feasts, they are most likely not going to order food online. Even the availability of food delivery partners may be a problem.

On the contrary, if you want to operate your ghost kitchen in an area where most of the residents are office goers, it is highly likely that they will frequently order online to save time.

Similarly, people involved in high-stress jobs may crave comfort foods and there may not be enough options for them. Opening a ghost restaurant in such a locality will be a success.

b) Business Model

This is where you will present the following:

• The type of kitchen you want (free-standing and completely customizable, sub-leased restaurants, or shared commercial kitchens)
• Choice of the location (must be in a safe place with easy access for delivery partners, easy waste management and disposal, safety permits, etc.)
• If you want to use your own delivery fleet, speak about the number of delivery staff you will need, the vehicles needed, the technology you intend to use for navigation, etc.
• A brief of your order management and payment processing system

If you have a unique business model in mind, spell that. For instance, you may decide to have multiple menus with different names and food types such as Emir’s Shawarma, John’s BBQ, The Kentucky Grills, etc.

For more information on the different types of business models there are for ghost kitchens, read our complete guide here .

This is the sub-section where you define your kitchen concept and provide some information about the menu items you have selected and why.

Here are a few things you need to explain:

• Is the food you are offering in tune with the locality and your target customers?
• Will your food items withstand travel? For example, if you want to sell French fries, it might not be a good idea because they may become soggy quickly before reaching the customer
• Are your products targeting any particular age group? For example, Gen X and Millennials may gravitate more towards comfort food.
• How do you intend to package your food?
• Who will be your vendors for supplies?
• What will be your branding, menu layout, etc.?

d) Pricing Strategy

This is the segment where you define your pricing strategy . You may offer discounts on bundled products. You may have a higher price range than your competitors for using organic items. Similarly, you may be charging slightly higher for providing bio-degradable containers and packaging material.

You must also speak about the most profitable items along with expected profit margins for all products you want to sell.

A pricing chart for all major products you are offering can help the investors or lenders to tie your pricing strategy with your financial projections.

e) Target Audience

Give an overview of your target audience or customers and explain the rationale behind the selection. For example, if you are creating a menu around Gen X and Millennials, then there must be a sizable proportion of people in those age groups in the locality.

If your menu includes more breakfast and lunch items then there must be a large chunk of working-class people who don’t have enough time to cook and will usually order food from outside.

A clear understanding of your target audience is crucial for success. If you don’t understand your target customers and their needs, potential lenders and investors will not be confident about investing in your business.

f) Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

If you have selected partners, explain why you have selected them and what positive impact they will have on your business. For instance, you may actually decide to make your raw materials vendor a partner in your business. This will ensure that you will get your supplies at a much lower rate than your competitors. This can help you to bring down your prices.

3. Ghost Kitchen Market Analysis

A clear understanding of the market is absolutely necessary. You must demonstrate your market knowledge to potential lenders and investors, or else they will lose confidence. That’s the purpose of the market analysis section of your ghost kitchen business plan.

For example, if you intend to sell Connecticut’s popular White Clam Pizza in Colorado where Lamb Chops are famous, it might not work. Thus, understanding your market and the food preferences of people living there is absolutely necessary.

a) Market Trends

Understanding the market trends is necessary. This will allow you to identify growth opportunities. For example, if plant-based sausage wrap and cajun fries are popular choices among people ordering online, trying to sell Nashville hot chicken sandwiches that fell out of popularity is definitely not a good idea.

If you don’t know which dishes to offer, you can check Grubhub’s ‘State of the Plate’ or Doordash’s ‘State of Flavor’ reports to get an idea of what people are ordering the most. Such reports will give you a fair idea.

The goal is to stay abreast with current demands and trends and offer those items. You will need to research your potential customers. The best way to do that is to interact with them and ask them directly.

You may ask questions like:

• Which dishes do they usually order online?
• What side dishes and desserts do they usually prefer?
• What are the top alcoholic beverages they order?
• What do they prefer for breakfast, lunch, dinner, and late at night?
• What food items do they prefer during winter, summer, spring, and fall?

The more data you gather, the easier it becomes to come up with a menu that people will like.

b) Competition

Researching your competition is important. You must try to find out:

• Which food items they are selling the most?
• Who is their target audience?
• What promos, offers, and bundles do they offer to maximize sales and profits?
• Do they have seasonal menus?
• How many food delivery platforms they have partnered with?
• What is their average price range?
• What type of packaging materials are they using?

Add as many questions or points as required for your analysis. The more detail-oriented the analysis is, the better it is.

You must draw a strong conclusion based on the data you gather. Here are some examples of the conclusions you can come up with:

• There are no ghost kitchens in the area that have seasonal menus.
• None of the competitors offer bundled food items
• No competitor offers multiple menus with different names and different food types

The conclusion you draw must validate your business model and the rationale behind it.

c) Customers

This is where you will give the details of your target audience. Remember that the Business Overview section only gave a preview. Additional details will be here in this section.

Customer data can include information such as:

• What percentage of the total population in the locality make up your target audience?
• How frequently do they order food online?
• What type of food do they usually order?
• What is the average order size?
• At what time of the day do they usually order food online?
• Are they loyal customers of certain ghost kitchens or do they try out food from different kitchens frequently?
• Do they buy recommended items (recommended items on your menu may carry the highest profit margins)?
• Do they share their culinary experience on social media? Which social media platforms do they use?

Feel free to add such much data as you feel is necessary to validate your business plan. While you will get most of the data from your direct target audience outreach and research, you can get some data from competitor research and various other sources as well.

4. Ghost Kitchen Marketing Strategy

In this segment, you must explain your strategy for acquiring customers.

This is the segment where you outline your customer acquisition strategy. Try to answer the following questions:

• What is your USP ?
• What marketing channels will you use (online or offline)?
• Do the marketing channels aptly grab the attention of your target audience? For instance, young adults will most likely not pay attention to TV ads. They are more hooked on social media.
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?

Let’s expand a bit on a few questions below:

What marketing channels do ghost kitchens use?

In addition to the food delivery apps, a few marketing channels ghost kitchens typically use are:

• Social media
• Influencers
• Email marketing
• SMS marketing

You don’t need to use all marketing channels. You can focus on just 2 or 3 and gain expertise in those channels. For instance, if your target audience is mostly on Instagram and Facebook, you must come up with strategies to engage with them on those platforms.

What is your unique selling proposition?

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Price : you may have cheaper prices than competitors
• Specialization : you may be specializing in some specific type of food (e.g. Dim Sum, Korean BBQ, etc.)
• Additional products : you may sell alcoholic and non-alcoholic beverages, special seasonal shakes, etc.
• Combos : you may offer chef-recommended food combos and bundles
• Packaging : you may use environment-friendly bio-degradable food packaging

Your USP will vary based on the products you want to sell and the target audience.

5. Ghost Kitchen Management

You must address two things here:

• The management team and their experience/track record
• The organizational structure: what are the different teams and who reports to whom?

a) Management

Your kitchen management will vary depending on its size, scale, and business model. For instance, if you are going for shared commercial kitchens, you don’t need to worry about building or equipment management. For a free-standing ghost kitchen, your will be responsible for everything. Again, for a multi-menu model, you may want separate people managing the supply chains.

You may have co-founders and/or senior managers. You must explain their roles, too. Apart from that, you must also explain their industry experience and why they are suitable for those positions.

b) Organizational structure

Note that even if you have not already hired anyone, you must include the roles at least.

Typical roles for a ghost kitchen are: senior managers, chefs (head chef and junior chefs), housekeepers, helpers, delivery staff (if you want your own delivery fleet) and other support team members (HR, finance if you run a large operation).

You must define their roles and the hierarchy of reporting. This will demonstrate to the potential lenders and investors the solid management plan you have in place to operate your business efficiently and successfully.

Create and attach an organizational chart for a visual understanding of your kitchen’s staff and their reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any ghost kitchen business plan.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your cloud kitchen is an attractive investment.

There should be 3 sections to your financial plan section:

• Your historical financials (only if you already operate the business and have financial accounts to show)
• The startup costs of your project (if you plan to open a new kitchen, renovate or expand your kitchen, etc.)
• The 5-year financial projections

a) Historical Financials (optional)

In the scenario where you already have some historical financials (a few quarters or a few years), include them. A summary of your financial statements in the form of charts e.g. revenue, gross profit and net profit is enough, save the rest for the appendix.

If you don’t have any, don’t worry, most new businesses don’t have any historical financials and that’s ok. If so, jump to Startup Costs instead.

b) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project.

For a ghost kitchen, startup costs are all the expenses you incur before you can actually start cooking and making sales. These expenses typically are: buying equipment, renovating the building, purchasing inventory, paying for the lease deposit , etc.

To give you a clear overview of the costs you can expect when you open your own dark kitchen, we have laid out below 2 examples: a white label dark kitchen in a kitchen you own (1) and another operating in a shared kitchen you rent (2) . For more information on how much it costs to open a ghost kitchen, read our complete guide here .

c) Financial Projections

In addition to startup costs, you will now need to build a solid financial model over 5 years in your ghost kitchen business plan.

Your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 5%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of customers and orders over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Any other cash flow items (e.g. capex, debt repayment, etc.).

When projecting your revenue, make sure to sensitize pricing and the number of customers, sales as a small change in these assumptions will have a big impact on your revenues.

7. Use of Funds

This is the last section of your ghost kitchen business plan. Now that we have explained what your ghost kitchen is about, the industry, management and your marketing strategy, this section must answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan should include a clear use of funds section: this is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the inventory? Or will it cover mostly the cost for the lease deposit, the renovation and the cooking equipment.

Those are very important questions you should be able to answer in the blink of an eye. Don’t worry, this should come straight from your financial projections. If you’ve built solid projections like in our ghost kitchen financial model template , you won’t have any issues answering these questions.

For the use of funds, we recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

Privacy Overview

How to Write a Ghost Kitchen Business Plan (With Examples)

Making a ghost kitchen business plan is the first step to starting your own money-making food business. Ghost kitchens, also known as virtual or cloud kitchens are a new kind of food place that only does takeout and delivery orders.

With the rise of food delivery apps and people wanting to eat at home more, ghost kitchens have become a really good way to start a food business that doesn’t cost too much.

Starting a successful ghost kitchen needs more than just loving food. You need a good plan and our guide will help with that. It’ll show you how to make a detailed business plan that can bring in investors, get you the money you need to start, and ensure your business keeps making money.

With upfront planning and continuous monitoring, this plan aims to maximize the probability of building a thriving and sustainable ghost kitchen business.

Executive Summary

The executive summary is essentially the elevator pitch for your entire business plan. It should provide a high-level overview of the key elements and quickly make the case for why your ghost kitchen concept is viable, profitable, and worth investing in.

When writing an executive summary for a virtual restaurant, you’ll want to focus on:

• Briefly explaining the ghost kitchen business model and how your concept utilizes it. This provides context upfront for readers who may be unfamiliar with the operational approach.
• Introducing your brand positioning, menu offerings, and what makes your concept unique or better than competitors. Establish your value proposition.
• Summarizing customer demand drivers in your target market and how your menu and operations are tailored to meet customer needs.
• Highlighting key elements of your growth strategy focused on delivery and digital platforms. How will you drive traffic?
• Providing an overview of unit economics – average sales volumes, costs, and profit margins so investors understand the financial opportunity. Use easy-to-digest numbers and metrics here.
• Outlining high-level startup and operating costs involved so readers understand the full funding requirements.
• Explaining expected ROI timeline and projections investors can expect if funding the venture.

The executive summary should excite and intrigue readers enough to read the full plan. Keep it concise at 1-2 pages max while ensuring it covers all the key elements of your ghost kitchen concept, economics, and growth trajectory.

Krave Kitchen is a proposed virtual restaurant launching in Chicago focused on elevated comfort food delivery. By leveraging online ordering and a compact ghost kitchen model, our mission is to make crave-worthy dishes like mac and cheese, wings, and milkshakes available citywide at the tap of a button.

We have partnered with Kitchen United to lease a fully equipped kitchen bay in their Chicago Loop location. This enables launching quickly without any upfront capital expenditure. Our menu will feature gourmet twists on classic comforts like deep-dish mac and cheese pizza, Korean fried chicken wings, and artisanal ice cream sandwiches.

The Chicago comfort food delivery market is estimated at $2.2B annually and growing 30% per year with Millenials and Gen Z driving demand. Our quantitative and qualitative market analysis gives us confidence we can capture a 0.6% market share, reaching monthly sales of $110k at maturity.

We estimate average order values of $28, with food costs of 35% and gross margins of 60% when factoring in delivery app commissions. Krave Kitchen will break even within the first 9 months of operations. We aim to exit at a 3x EBITDA multiple in year 4, delivering an expected 3-year ROI of 45% to equity partners.

To fully build out our kitchen, develop our delivery-optimized menu, and operate for the first 8 months until profitability, we are seeking $450k in seed funding in exchange for 15% ownership. Krave Kitchen presents a unique opportunity to invest in an asset-light virtual restaurant poised to capitalize on surging demand for delivery.

The Company Overview

The Company Overview tells the origin story of your virtual restaurant concept. It should provide background on the founders, summarize the brand identity and positioning, explain the menu and cuisine type, and articulate the problems you aim to solve for customers.

When crafting this section for a ghost kitchen, key elements to cover include:

• Introducing the founders and their relevant experience. This builds credibility.
• Explaining the motivations and vision behind launching a delivery-only operation. Share key insights that led to this idea.
• Describe the type of food and cuisine your kitchen will serve. Share menu highlights and details that convey your unique offerings.
• Outlining the core customer pain points or needs your concept addresses. How does your menu, ordering process or operations solve these issues?
• Summarizing how you settled on the ghost kitchen model and why it’s the right fit for executing your vision over traditional restaurants.
• Detailing any partnerships, technology platforms, or operational advantages you’ll leverage to streamline the ghost kitchen.
• Explaining key brand identifiers like name, logo, and positioning that convey your identity and ethos.

The Company Overview section should get readers excited about the founders, concept, menu, and opportunity your ghost kitchen presents in the evolving market.

Keto Bites is the brainchild of Mary C and Ken M who met while training at Le Cordon Bleu culinary school. With nutrition top of mind for modern diners, Mary and Ken saw an opportunity to make healthy, keto-friendly meals more accessible by launching a delivery-optimized ghost kitchen.

Based in Austin, Keto Bites will offer low-carb breakfast, lunch, dinner, and snack options tailored for the ketogenic diet. Menu items include keto waffles, cauliflower crust pizzas, charcuterie boards, and more. With customization options, Keto Bites provides flexibility for different requirements.

By leveraging a centralized commissary kitchen model with no dining room overhead, Keto Bites can focus operations entirely on preparing high-quality keto meals for seamless home delivery. This increases profit margins over traditional restaurants while keeping prices reasonable. Keto Bites aims to satisfy dieters struggling to stick to their nutritional plans.

Founded by David L, a 15-year hospitality veteran, Quick Bao is a new San Francisco-based ghost kitchen dedicated to modern Taiwanese street food. The idea was inspired by watching long lines form daily for bao stands in night markets across Asia.

Quick Bao will offer an array of savory and sweet steamed buns with creative fillings like five-spice pork belly, crispy duck, and custard with fresh fruit. Sides include seasoned fries and refreshing milk tea. The menu will also feature rotating seasonal baos.

By preparing baos in bulk from a delivery-optimized ghost kitchen, Quick Bao can ensure speed, affordability, and consistency. Customers can conveniently order anytime via delivery apps. Quick Bao aims to bring authentic Asian flavors to West Coast foodies craving baos on demand.

Team and Management

The Team and Management section should outline the key players involved in launching and operating the ghost kitchen. It builds confidence by demonstrating you have the right expertise, experience, and personnel to execute the concept.

When drafting this section, ghost kitchens should focus on:

• Introducing all founders and partners, along with brief backgrounds demonstrating their relevant industry experience.
• Detailing the ownership split and role of each co-founder to show a clear delineation of responsibilities.
• Explaining any key hires made or planned, especially head chef, general manager, or marketing lead. Share standout qualifications.
• Describe the advisory board if established, and what strategic guidance they provide.
• Outlining organizational structure and plans for future hiring as the business scales.
• Emphasizing experience in online delivery operations, virtual restaurants, and data-driven management.
• Including founder photos and bios in an appendix to put faces to names.

The goal is to validate that the team has the required blend of culinary skills, technical expertise, marketing savvy, and management acumen to convert the business plan into an operating success. Identify any gaps that need filling.

The co-founders of City Woks both bring decades plus experience in hospitality and business operations.

CEO Chris W previously founded and led a 10-unit cafe chain focused on customer technology integration and analytics-based growth.

Head Chef Mei T graduated top of her class from Le Cordon Bleu and honed her craft at Michelin-star restaurants in Shanghai and San Francisco.

CTO Sanjay P has led development for food delivery services managing over 5 million monthly orders.

With Chris’ operations experience, Mei’s culinary expertise, and Sanjay’s tech-savvy, City Woks is positioned to seamlessly execute our mission of delivering exceptional authentic Chinese food forged through technology.

At PizzaCo, our lean founding team combines deep pizza-making heritage with delivery technology expertise.

Giorgio R learned the art of pizza from his family in Naples before moving to New York to work at renowned pizzerias. He will lead culinary innovation.

Co-founder Alyssa P has a BSE in Operations Research and previously managed logistics for food delivery startups. She oversees our operations.

We have partnered with Velocity Partners for tech development and will be making key hires in marketing and customer service. Our core team has the strategic experience necessary to disrupt pizza delivery in Chicago and scale nationally.

Market Analysis

The Market Analysis section demonstrates a deep understanding of your industry, customers, and competitors. It’s crucial for validating demand and projecting realistic growth.

When developing this section, ghost kitchens should focus on:

• Providing an overview of virtual restaurant industry trends – growth, consumer shifts, competitive dynamics.
• Defining your target customer segments in detail – demographics, behaviors, psychographics. Back up claims with data.
• Analyzing direct and indirect competitors – including their offerings, prices, unit volumes, and strengths/weaknesses.
• Estimating total addressable market size for your city or region, with statistics on historic growth.
• Forecasting future market growth over the next 3-5 years as online delivery adoption increases.
• Detailing what macro and micro market factors could impact demand for your concept – both risks and opportunities.
• Outlining how your positioning, menu, and operations are tailored to capture the opportunities identified in this analysis.

The goal is to thoroughly analyze the competitive landscape and demonstrate why customers will choose your ghost kitchen over alternatives. Support assertions with cited industry data, projecting conservatively. Identifying potential threats will strengthen your plan.

The meal kit delivery industry has boomed, with an estimated 12 million U.S. households now purchasing meal kits. However, prepared meal delivery represents an even larger $17 billion market. With increasing demand for convenient dinnertime solutions, the prepared meal delivery sector is projected to grow at a 7% CAGR through 2025.

Our target customers are urban professionals aged 25-40 without time to grocery shop and cook but want to eat healthy home-cooked meals. 63% say customized nutrition is important. Competitors in this space include subscription services like Freshly but prepared meal choices are still limited.

By providing chef-designed, personalized paleo meals on-demand, our ghost kitchen uniquely solves consumers’ needs for healthy, customized, delivery-native dinner options in Seattle. We estimate obtaining a 2.3% market share within 2 years of operations by capitalizing on this value proposition.

The bustling New York City dessert delivery market has grown steadily at 4% annually, reaching an estimated $730 million in 2020 sales. Bakeries dominate, holding a 52% share. Our consumer research indicates high demand, especially among corporate clients for more premium, innovative offerings.

Our upscale virtual dessert kitchen will differentiate from competitors with artisanal, photogenic sweets like our signature molten chocolate cakes and berry tartlets. With dessert-specific delivery branding, we can uniquely capitalize on consumer appetite for gourmet, splurge-worthy selections.

Focusing exclusively on desserts also provides economies of scale advantages. We conservatively estimate the ability to capture a 1.2% market share within 18 months by catering specifically to high-end corporate and residential segments.

Concept and Menu Strategy

The Concept and Menu Strategy outlines your brand identity , offerings, and how the menu is optimized for delivery. This section brings your virtual restaurant to life.

Key elements ghost kitchens should cover include:

• Articulating your brand positioning statement and core values. What key attributes define your identity?
• Detailing your value proposition – how your offering delivers more value than competitors.
• Providing an overview of menu categories, signature items, and types of cuisine.
• Explaining how the menu is specifically designed for delivery. This includes packaging, portion sizes, and easing transit.
• Describing customization and dietary options to meet customer needs.
• Outlining your pricing strategy and rationales behind price points for competitiveness and profit goals.
• Detailing plans for menu rotating, testing, and optimization based on data and customer feedback.
• Including full menu detail and photos in the appendix for easy visualization.

The goal is to convey to investors how your concept, branding, and menu are distinct and tailored to succeed in a virtual restaurant model based on target customer preferences.

Urban Chef offers fast-casual quality global street food with the convenience of delivery. Our diverse menu features regional specialties like shawarma, banh mi, empanadas, and build-your-own poke bowls. Customers can sample flavors from around the world.

Focusing on street food classics that travel well enables optimized packaging for transit. Our affordable pricing targets students, young professionals, and families without breaking their budgets. We estimate an average $22 order value.

Our value proposition is providing affordable access to global flavors from the comfort of home. Our ghost kitchen model allows price points competitors can’t match for quality.

As a plant-based virtual kitchen, Veg Out’s brand ethos stems from our commitment to sustainable, compassionate, waste-free cooking. Our diverse menu satisfies vegan, vegetarian, and flexitarian diets.

Guests build bowls and burgers combining proteins like chickpeas, lentils, or jackfruit with fresh veggie toppings and house-made sauces. Our desserts are dairy-free indulgences like brownies and cheesecake.

With all compostable packaging and optimized travel solutions, Veg Out delivers quality plant-based fare designed for urban markets. Our ghost kitchen model enables access with value pricing at 20% below dine-in competitors.

Marketing Plan

Since ghost kitchens lack physical storefronts, marketing efforts are crucial for generating awareness and repeat business. The plan should outline marketing strategies for reaching and engaging your target customers online and through delivery apps.

Key elements to cover in this section include:

• Detailing promotional tactics like social media ads, flyers, and discounts to drive new customer acquisition around the launch.
• Discussing partnership opportunities with delivery apps, corporate meal programs, catering, etc. to rapidly scale orders.
• Explaining intended social media and influencer marketing to build brand awareness and following.
• Describing a memorable grand opening promotion to create a splash when you first launch.
• Outlining grassroots tactics like sampling, local events, and PR outreach to make an impact in the community.
• Tracking and measurement methodology to monitor effectiveness and optimize spend.
• Allocating an owned, earned, paid media budget based on scalable ROIs.

The goal is to demonstrate a digitally-savvy performance marketing plan tailored to drive real transaction volume to a virtual restaurant. Tie activities directly to projected sales growth.

To promote the launch of City Wok’s ghost kitchen, we will leverage a multi-channel digital marketing strategy targeting downtown office workers seeking affordable lunches. Tactics include:

• Targeted social media ads across Facebook, Instagram, and LinkedIn promoting our $5 lunch special for the first month.
• PR outreach campaign pitching exclusive menu previews to local lifestyle and food bloggers.
• Prominent search and display ads on GrubHub, UberEats, and DoorDash to drive delivery app orders. We have allocated 15% of our marketing budget here given the strong ROI potential.
• Direct mail flyer to all offices within a 2-mile radius including a unique promo code for 10% off first orders.

As a plant-based ghost kitchen, Veg Out’s marketing strategy relies heavily on social media and influencer partnerships to raise brand awareness among our core demographic. Key programs include:

• Instagram giveaway with local vegan influencers to promote our launch and attract new followers.
• Monthly TikTok video collaborations with up-and-coming chefs creating plant-based recipes.
• Ongoing email nurturing campaign with health-conscious content to encourage repeat purchases.
• Pop-up sampling events at local gyms, yoga studios, and farmers markets to introduce Veg Out meals.

We aim to build an organic community of brand advocates by engaging potential customers through lifestyle-aligned touchpoints. Our focus will be on retention and customer lifetime value after launch.

Here are some examples of social media and influencer marketing campaigns that could work for ghost kitchens:

Social Media Campaigns:

• Instagram giveaway – Post photos of signature dishes and run a contest for free meal combos to drive followers.
• TikTok taste test challenge – Film customers taste-testing menu items and use a trending sound/hashtag to go viral.
• Facebook weekly specials – Promote a limited-time special dish each week to existing followers to encourage reorders.
• Twitter polls – Post polls asking followers to vote on which new menu item they want added to drive engagement.

Influencer Marketing:

• Sample drops to micro-influencers – Send free meal kits to micro-influencers in your area to feature on Instagram and TikTok for authentic buzz.
• Food blogger media kits – Reach out to relevant local food bloggers and offer a media kit with free delivery credit in exchange for reviews.
• YouTube mukbang partnerships – Sponsor mukbang YouTubers to feature an entire menu review and ASMR eating experience.
• TikTok chef collaborations – Bring on TikTok chefs as guest collaborators to develop a special viral dish together.

Focusing on organic, engaging social content and mutually beneficial influencer partnerships can build brand affinity with potential customers online for a ghost kitchen.

Operations Plan

The Operations Plan details how you will manage day-to-day business functions from cooking to delivery logistics. It demonstrates you have the processes and infrastructure to smoothly run a virtual restaurant.

Key elements ghost kitchens should address in this section:

• Describing the commercial kitchen location secured, including layout, capacity, and licenses obtained.
• Explaining required roles like head chef, prep cooks, packaging team, and expected hiring timeline.
• Detailing sourcing strategy for procuring quality ingredients at optimal prices.
• Outlining relationships with food delivery platforms and order management technology.
• Listing necessary kitchen equipment based on menu offerings and estimated costs.
• Explaining workflow during peak order periods to fulfill demand while maintaining quality standards.
• Describing food safety procedures, packaging solutions, and delivery handoff logistics.

The goal is to provide investors confidence you can effectively operate the ghost kitchen on a daily basis to meet sales, efficiency, and profitability goals.

Our ghost kitchen will be located in a leased 1,200 sq ft commissary kitchen facility at 234 Oak St. We secured this centralized site to provide delivery coverage across downtown. The space features 8 cooking stations, industrial refrigeration, and packaging counters optimal for high-volume preparation.

We plan to hire 2 prep and line cooks and 3 delivery drivers/packaging staff at launch. The founding chef will oversee all back-of-house operations. With projected order volume averaging 75-100 meals per day in the first few months, this provides sufficient staffing. We forecast needing to double hiring after 6 months of growth.

We have partnered with FoodHub, a digital platform connecting restaurants to suppliers, for sourcing all ingredients from local farms and purveyors. This ensures we get the freshest, seasonal ingredients. We also get the benefits of bulk purchasing and consolidated delivery to keep costs low.

For online ordering infrastructure, we have built direct integrations with UberEats, Grubhub, and DoorDash which account for 95% of delivery share in our market. Customers can seamlessly order across these apps.

Our kitchen is fully equipped with commercial ranges, chillers, workstations, and packaging equipment tailored for our globally inspired menu. We have all the necessary capabilities in-house for soup-to-nuts meal preparation and delivery dispatch.

Financial Plan

The Financial Plan converts all the operational details into numeric projections. This section should provide hard figures on costs, sales, profitability, and funding needs.

Key elements ghost kitchens should include:

• Itemizing startup costs – kitchen equipment, licensing, legal, branding.
• Listing ongoing fixed and variable operating expenses based on the business model.
• Forecasting monthly and annual sales based on market data, prices, and order volumes.
• Developing P&L statements based on realistic assumptions. Project profit margins.
• Detailing cash flow needs and burn rate expectations by month, tied to growth plans.
• Conducting breakeven analysis on when profitability is reached.
• Performing sensitivity analysis on how variances in assumptions like order values or food costs impact financials.
• Outlining key assumptions underlying all financial projections made.

The goal is to demonstrate the economic viability and profit potential of the ghost kitchen based on intelligent financial modeling. Identify risks, challenges, and capital requirements.

Funding Request

The Funding Request quantifies how much capital you need to launch and when investors can expect returns. It should clearly articulate how investment will be used.

Key elements ghost kitchens should cover in this section:

• Stating the total capital amount you are requesting from investors and expected equity to provide.
• Detailing specific use of funds. How much will go towards kitchen build-out, operating expenses, hiring staff, marketing, etc?
• Outlining milestones that additional funding amounts will be needed to achieve.
• Projecting investor ROI timelines based on financial forecasts. When can they expect payback?
• Calculating ROI multiples expected at exit strategies like acquisition or franchise expansion.
• Describing how you arrived at the valuation for the business. Justify projected valuation at maturity.
• Explaining how investor funds specifically will accelerate growth and enable scaling.

The goal is to tie the funding request to clear business growth plans and demonstrate sizable upside potential on investment at exit. Be transparent on risks and timeline expectations.

We are seeking $550,000 in seed funding for a 25% equity stake in PizzaCo. This capital will enable us to set up our ghost kitchen operations and execute our aggressive expansion strategy for Chicago.

Use of Funds:

• $125,000 for kitchen build-out and equipment
• $100,000 for product development and menu finalization
• $150,000 for hiring staff and employee training
• $175,000 for marketing and promotions
• Based on our financial projections, investors can expect an estimated 3x ROI within 5 years as we scale to 15 locations in Chicago and begin franchising nationally. The virtual kitchen model provides attractive unit economics and accelerated growth.

Keto Bite is requesting $450,000 in exchange for 20% equity ownership. These funds will allow us to establish our Austin ghost kitchen and achieve rapid growth.

Capital uses:

• $200,000 for commercial kitchen leasehold improvements & equipment
• $125,000 for startup operating expenses and staffing
• $125,000 for a comprehensive digital marketing strategy

We aim to reach profitability by year 2. Given consumer demand for ketogenic meals, we expect to franchise nationally within 4 years for an estimated 5x ROI. Austin’s affluent market provides a prime launchpad for this specialty concept. We invite investors hungry for a stake in the future of food delivery.

How To Write a Conclusion

Here are some tips on writing an effective conclusion for a ghost kitchen business plan:

The conclusion should summarize the most compelling points and create a call to action for potential investors. It reinforces why your ghost kitchen is primed for success.

Key elements ghost kitchens should cover:

• Briefly recap the market opportunity as delivery dining habits shift.
• Summarize your unique value proposition and sustainable competitive advantage.
• Highlight your experienced founding team and any traction to date.
• Emphasize projected profitability and return potential.
• Note how you’ll leverage data and technology for efficient operations.
• List out the immediate next steps you’ll take post-funding to hit the ground running.
• Close with a statement on how your ghost kitchen is positioned to become the premier player in the space.
• Include a call to action for investors to help seize the opportunity and grow with you.

The goal is to leave readers excited by the growth prospects, upside potential, and your capability to execute. Demonstrate you have a prudent plan to build a thriving virtual restaurant. The conclusion should spur investors to act.

The ghost kitchen model represents a compelling opportunity to meet rising consumer demand for delivery. By focusing exclusively on off-premise dining, we can optimize operations and economics not possible with traditional brick-and-mortar restaurants.

Urban Chef’s competitive advantage stems from our diverse global street food menu tailored for delivery. Our centralized virtual kitchen location provides cost efficiencies traditional takeout restaurants lack. We are led by an experienced team combining culinary and operational expertise with data analytics capabilities.

With the funding we have outlined, Urban Chef is poised to become the premier ghost kitchen for exotic and crave-worthy delivery meals in Chicago. We will quickly scale by leveraging our omnichannel digital marketing strengths.

The next steps include finalizing our lease agreement, completing the kitchen build-out, and bringing on a talented head chef to refine the menu. We will also initiate recruiting and onboarding of our hiring pipeline to be ready for launch. Site selection analysis will begin for a second ghost kitchen location to expand our market footprint.

This opportunity aligns perfectly with changing consumer habits. We welcome investors with a vision to help Urban Chef establish market leadership in this emerging segment.

Conclusion and Key Takeaways from This Guide

In conclusion, a winning ghost kitchen business plan clearly articulates every aspect of your virtual restaurant concept and growth strategy. It demonstrates to investors that you have thoroughly evaluated the opportunity, crafted a differentiated value proposition, and developed an executable plan for profitability.

Key takeaways for developing an effective ghost kitchen business plan include:

• Conducting extensive market research into customer demand drivers, competition, and industry trends to inform your model.
• Describing your unique branding, menu offerings, and positioning to stand out.
• Detailing an omnichannel marketing plan tailored for digital and delivery promotion.
• Mapping out the supply chain, staffing, equipment, and technology like a POS system that you need for smooth operations.
• Building comprehensive financial projections supported by intelligent assumptions.
• Quantifying capital requirements and use of funds to fuel growth milestones.

With a comprehensive business plan that checks all the boxes, you can compellingly convey the vision for your ghost kitchen and the expected return on investment. Use it to open doors to funding sources and accelerate your pathway to profitability.

The next steps are to finalize sections, incorporate investor feedback, and keep refining the plan as you execute. View it as a living document to update as you gather data and achieve milestones. With a clear roadmap guiding decisions, your ghost kitchen can gain momentum on the journey to success.

You might also like: Best Cloud & Ghost Kitchen POS Systems How to Choose The Best Ghost Kitchen Business Model How to Start a Ghost Kitchen Business: A Step-by-Step Guide

Here are some common mistakes to avoid when writing a ghost kitchen business plan:

• Failing to clearly explain the ghost kitchen model – Don’t assume investors inherently understand the virtual restaurant concept. Concisely describe how it works.
• Weak competitive analysis – Thoroughly research direct and indirect competitors both local and national. Outline your differentiation.
• Unrealistic financial projections – Base sales forecasts, expenses, growth timelines on actual market data – not aspirational guesses.
• Overcomplicated concept – Avoid overly complex menus or branding that will be hard to execute operationally. Keep it simple.
• No risk analysis – Address potential challenges like fickle demand, thin margins, reliance on delivery apps.
• Lack of customer insights – Include relevant market research, surveys, interviews to back up customer targeting.
• Ignoring unit economics – Calculate projected profitability per location to ensure model works.
• Vague marketing plan – Get detailed on tactics, channels, influencer partnerships that will attract customers.
• Failure to size funding need – Many ghost kitchens underestimate startup and operating capital required.
• Not conveying passion – Infuse the business plan with your enthusiasm and founder journey. Make investors believe.

Conduct diligence in each section and avoid unnecessary assumptions. Demonstrate your ghost kitchen concept is grounded in intelligent planning.

Here are some common challenges faced by ghost kitchens and tips on how to address them in your business plan:

• Low Barriers to Entry – Highlight your unique value proposition and sustainable competitive advantage that sets you apart.
• High Real Estate Costs – Research optimal locations that balance space costs with demand and delivery range.
• Managing Variable Demand – Develop projections using historical data and plan staffing/inventory accordingly.
• Digitizing Operations – Detail your integrated tech stack for seamless order management across platforms.
• Accessing Capital – Quantify funding needs and outline specific uses and growth milestones.
• Thin Profit Margins – Structure lean operations and prevent waste to maximize per unit economics.
• Fickle Customer Loyalty – Have a retention strategy, not just acquisition, to build repeat business.
• Reliance on Delivery Apps – Describe alternatives like direct ordering and corporate/catering channels.
• Food Safety & Packaging – Outline safety procedures, operating processes, and packaging solutions.
• Talent Shortages – Highlight recruitment plan and training programs for kitchen and delivery staff.

The more you demonstrate awareness of risks and solutions in your plan, the more investor confidence you will build.

Here are some of the key criteria investors typically look for when evaluating ghost kitchen startups to invest in:

• Experienced founding team with culinary and operational expertise
• Clear value proposition and competitive advantage
• Differentiated brand positioning and a menu offering
• A solid market analysis demonstrating demand drivers
• A financially prudent business model with realistic projections
• Omnichannel sales strategy beyond just delivery apps
• Scalability of concept for multi-unit expansion
• Advanced food production and ordering technology stack
• Strong unit economics and path to profitability
• Defensible IP, whether recipes, processes, or software
• Reasonable capital requirements and growth milestones
• Track record executing or iterating quickly based on data
• Community involvement, partnerships, and marketing savvy
• Potential for add-on revenue streams like CPG, licensing, etc.

Essentially investors want to see that ghost kitchen founders understand the business model intricacies, have a solid plan to drive profitability, and can scale the concept wisely with investment. Unique offerings, use of technology, and experienced teams help attract funding.

Some common challenges ghost kitchen startups face in attracting investors include:

• Lack of customer validation – Investors want to see evidence of real demand before committing capital. Many startups lack proof their concept will sell.
• Unclear path to profitability – With razor-thin margins, investors question if unit economics will work long-term. Financial models may be too optimistic.
• Unproven management team – First-time food entrepreneurs without experience raising capital or managing a commercial kitchen carry more perceived risk.
• Emerging industry – Some investors are still educating themselves on the virtual restaurant model and market landscape. Fewer data exist.
• Physical footprint risk – Not yet securing a kitchen location adds uncertainty around costs and delivery logistics.
• Competition from larger players – Major chains launching their own ghost brands makes it harder for independents to gain share.
• Technology risk – Relying on third-party delivery apps and ordering platforms creates vulnerability if terms change.
• Differentiation challenge – Many ghost kitchen concepts lack a distinct brand identity or menu innovation.
• Smaller check sizes – Lower average orders limit profit upside compared to dine-in restaurants.

The more a startup can demonstrate traction, experience, and a prudent plan addressing these concerns, the higher likelihood of obtaining funding.

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• 7 Best Cloud & Ghost Kitchen POS Systems (2024)

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How Cloud Kitchen Business Models Have Transformed the Food Delivery Industry

Quick Summary: Though cloud kitchens gained popularity a long time ago, their demand is on the rise at present. With a shortage of space, huge investments for an outlet, and changing trends in the food industry, businesses have started to invest in cloud kitchens. Whether you are an existing restaurant or a startup looking for opportunities in the online food industry, this blog will help you with everything to understand ghost kitchens’ cloud kitchen business models and benefits in detail.

In today’s rapidly evolving market, transitioning to online platforms is imperative for businesses looking to establish a strong brand presence and expand their services. This shift is especially pronounced in the food industry, where many food businesses now rely entirely on online platforms to drive their sales. This transformation has been made possible through the advent of Cloud Kitchens.

As per the reports, the value of the cloud kitchen market is expected to reach US$ 117.89 billion by 2031. All this is because customers want to get their food delivered rather than moving out of their homes.

Table of Contents

What is A Cloud Kitchen?

Also known as the virtual kitchen, ghost kitchen, and dark kitchen, these models are a great fit for food delivery startups and existing businesses that want to expand quickly. Unlike traditional restaurants, cloud kitchens do not offer a physical dining area for customers. Instead, the food is prepared in the kitchen and delivered to the customers. They take orders for delivery-only meals through their own website or delivery apps like Uber Eats, Grubhub, DoorDash, and Deliveroo.

Are you a cloud kitchen owner relying on third-party apps and losing significant money to commissions? It’s time to invest in on demand food delivery app development services and launch your own branded app.

Now, rolling back to the topic, let’s understand how cloud kitchens operate.

How Does A Cloud Kitchen Model Work?

Here is a brief explanation of how a cloud kitchen operates:

• Location: The virtual kitchen is strategically chosen in a densely populated area or areas with high demand for food delivery services. Choosing the right location ensures that the cloud kitchen performs well by engaging the right audience for its services.
• Online Presence: Ghost kitchens rely heavily on online platforms such as food delivery apps and websites to receive customer orders. Some dark kitchens also build partnerships with various food delivery platforms to reach a broader customer base.
• Food Preparation: Once the order is received through online platforms like apps and websites, the kitchen staff starts to prepare the food. The emphasis is given to preparing efficient and standard food to ensure consistency and quality.
• Delivery Logistics: Cloud kitchens must ensure safe delivery once the food is ready. They often have their in-house delivery fleet or third-party delivery services like Zomato. The food is packed appropriately to maintain its quality during delivery.

The whole process mentioned above allows ghost kitchens to ensure that they operate efficiently, enhance food delivery services, and build a solid customer base. 

This article will explore why investing in cloud kitchen models is a smart move and why it will be helpful in the long run. But, before that let’s discuss, what makes the cloud kitchen model different from traditional restaurants. 

Cloud Kitchens VS Traditional Restaurants

Restaurants have been around for decades and are here to stay. Food lovers get an excellent experience when they visit their favorite eatery places. However, with the evolving technologies and changing trends, restaurants must quickly adapt to these changes.

Stats About the Growing Market of Cloud Kitchens

Before we understand what ghost kitchens are, their models, and how to build a dark kitchen for your brand, let’s look at its growing market. The global cloud kitchen market size was valued at US$ 51.96 billion in 2020, and this is projected to grow at a CAGR of 12.4% from 2021 to 2028 .

One of the main reasons for this continuous growth is the changing preferences of the target audience. Customers now prefer online food services over dining experiences. 

Before investing in virtual kitchens, you must also understand what food has the highest demand. It will help you choose the perfect food delivery solution that gives you a market lead. The graph below provides a clear picture of it.

Different Types of Cloud Kitchen Business Models

If you are a startup looking to invest in cloud kitchens, you should know various ghost kitchen business models. Your chosen model will depend upon the business needs, budget, and other factors. 

1. Single-Brand Cloud Kitchen

Single-brand or standalone cloud kitchens are independent kitchens owned or rented by a brand without offering a dining space. Instead of requiring a physical eating area like typical restaurants, it concentrates on cooking and serving a particular brand or concept of food. 

These kitchens are explicitly designed to manage large-scale food production while maximizing efficacy and efficiency. Single-brand cloud kitchens can serve a broad range of customers by operating only online and offering convenience and unique culinary experiences.

2. Multi-Brand Cloud Kitchen

Multi-brand ghost kitchen runs various culinary brands under one roof. These cloud kitchens offer a wide range of dishes from different cuisines or food categories rather than concentrating on a particular brand or theme. These kitchens can maximize productivity and accommodate broader consumer demands by using shared facilities and resources. 

It enables operators to reach a larger audience and optimize their revenue potential by allowing the simultaneous production and delivery of various food brands.

3. Kitchen Pods

Within a shared kitchen facility, separate cooking spaces are provided via modular, self-contained kitchen pods. These pods often include the infrastructure and tools required to function autonomously within a more extensive kitchen, including cooking appliances, storage, and hygienic facilities. Kitchen pods offer a versatile and affordable alternative for enterprises that need their own cooking area but may not want to invest in a full-scale standalone kitchen.

4. Commissary/Shared Kitchens

Commissary or shared kitchens are commercial kitchen facilities that several restaurants or other food entrepreneurs share. These facilities have storage spaces, high-end culinary equipment, and other essential infrastructure. Commissary kitchens’ main benefit is that they provide a cost-effective option for individuals, small-scale food businesses, and startups that need access to a fully operating kitchen but cannot afford to set up and operate their own premises. 

Additionally, shared kitchens offer a cooperative setting encouraging networking, knowledge exchange, and future collaborations between food businesses.

5. Franchise Model

The cloud kitchen franchising model allows individuals or organizations to run a cloud kitchen under an established brand name while leveraging a tried-and-true business model and support system. Franchisees profit from the franchisor’s established brand, standardized operating practices, supply chain networks, and marketing assistance. 

They can benefit from a lucrative business model while using the flexibility and scalability provided by cloud kitchens by paying initial franchise fees, ongoing royalty fees, and adhering to the franchisor’s rules and requirements in exchange for these payments.

6. Aggregator-Owned Cloud Kitchen

A virtual restaurant idea owned and run by a third-party aggregating platform or food delivery service is called an aggregator-owned virtual kitchen. In this arrangement, the aggregator partners with other restaurant brands or food suppliers to provide a variety of menus while owning and managing the kitchen area, furnishings, and resources. 

The aggregator manages order management, logistics for delivery, and customer service, giving customers a central location to access a variety of food brands and cuisines. It enables greater productivity, cost-sharing, and market reach for the aggregator and the associated food companies.

How Do Cloud Kitchens Make Money?

Are cloud kitchens profitable? How do businesses in cloud kitchens make money? There are several ways that cloud kitchens can earn money. Some of the cloud kitchen revenue streams include:

1. Sales of Food and Beverages

The primary source of income for virtual kitchens is the sales of food and beverages. Once the customers pay the order online, it is prepared in the cloud kitchen and delivered. In this way, revenue is generated like the traditional restaurants.

2. Delivery Fees

Cloud kitchens earn money from delivery fees by charging a fee to customers for the delivery services provided. For every order placed through cloud kitchen, the customers may be required to pay a separate delivery fee that covers the cost of logistics, packaging, and the actual delivery of the food. The price is charged based on factors like distance, location, and order size.

3. Commission Model

Some cloud kitchens operate on a commission-based model. For each order or sale generated by the food businesses operating within the cloud kitchen, they have to pay a percentage/commission for it. This module helps the cloud kitchens earn money for every order placed through it.

4. Subscription Services

Another way that dark kitchens earn money is through subscription services. They offer food businesses or restaurants a subscription package to access and utilize their kitchen facilities. Depending upon the package, companies can get various benefits like discounted rental rates, exclusive kitchen access, storage space, and more.

5. Franchise Fees

By allowing aspiring business owners to use their established brand and business plan, Cloud Kitchens can generate revenue from franchising fees. Franchise fees are up-front sums of money paid to the cloud kitchen operator by people or companies in return for the right to duplicate and run a franchise location. These fees often cover the costs of brand licensing, initial coaching and support, access to recipes and SOPs, and ongoing assistance.

6. Marketing and Partnerships

Another cloud kitchen revenue stream is marketing and partnerships. Some dark kitchens further partner with food delivery apps, aggregators, and other businesses to promote their brands and services. These partnerships can include marketing collaborations and co-promotions to generate additional revenue.

💡 Must read: 10 Tips to Run a Successful Cloud Kitchen Business in 2024 .

Why Choose a Cloud Kitchen for Your Food Business Startup?

There  are so many competitive advantages of cloud kitchens models. Restaurants, cafes, hotels, and other eatery places face numerous challenges while preparing food, serving, and keeping the place up to date. Adapting to the latest techniques and strategies is essential to stay ahead of the rising competition. Below are the ways that cloud kitchens can help with this.

1. Reduced Overhead Costs

Cloud kitchens save restaurant owners and entrepreneurs money on overhead costs like rent, utilities, and equipment. In a traditional restaurant, these costs are significant and can sometimes make it challenging to earn a profit. By avoiding these expenses, virtual kitchens can offer meals at a more affordable price, which can attract customers and increase business.

2. Increased Efficiency

Cloud kitchens are designed for efficiency. They are optimized for online ordering and delivery and have a streamlined workflow that allows for faster preparation of meals. The streamlined workflow helps reduce time spent on prep work, leading to faster order fulfillment and improved customer satisfaction.

3. More Flexibility

The cloud kitchen model provides greater flexibility for entrepreneurs and restaurant owners. They can tailor their kitchen space to fit their specific needs and adjust their menu according to the ever-changing consumer demands. This flexibility allows for better experimentation with new concepts and menu offerings without the high cost of opening new locations.

4. Focus on Online Ordering

Cloud kitchens are built to maximize online ordering and delivery platforms. With more customers turning to online order and food delivery services, having a strong online presence has become critical for a restaurant business. Additionally, cloud kitchens can partner with third-party delivery platforms like Uber Eats and DoorDash, which have larger customer bases than traditional restaurants.

5. Wider Customer Reach

With a cloud kitchen, a restaurant owner can reach a broader market segment. In addition, customers can order from these kitchens from anywhere, at any time, and the orders can be delivered to remote areas where a physical restaurant’s reach may not have been possible otherwise.

6. Low Investments and Better Returns

Low investments and better returns are some of the most significant benefits of cloud kitchens. A traditional restaurant may need a hefty investment for a lease on a storefront, renovation expenses, furniture, equipment, and staffing costs, among others. In contrast, cloud kitchens are designed to be lean and cost-efficient, with shared equipment and utilities. Furthermore, better returns are also achievable from cloud kitchens due to their ability to reach a broader customer base more efficiently.

Steps to Start a Cloud Kitchen Business

Want to build your own cloud kitchen business and earn profits? Below are the simple steps that can help you get started with a solid cloud kitchen business, no matter what business model you choose.

1. Planning and Research

The first step towards building a cloud kitchen business is thorough research and planning. You must be able to identify your target market, analyze competition, and determine types of cuisines or food concepts. All these will further depend upon the location that you choose.

On the other hand, you must also invest in a food delivery app to enhance your business growth. It can be really easy when you follow the right steps to build a food delivery app .

2. Choose Business Model

You must pick a suitable business model once you identify and answer the important questions above. Do you want to build a single-brand cloud kitchen, collaborate with kitchen pods, or choose another model? The business model you choose will depend on your business goals and how you want to grow your brand in the future.

3. Build an App and List Your Business

Building a dedicated app for cloud kitchen is another important step towards establishing your business. The app will let you connect with the audience quickly, take their orders, and deliver them to the right address. Also, you must list your business on the top food delivery apps like Zomato, Uber Eats, etc., to gain a better customer base.

One of the best cloud kitchen case studies is the Eat Sure, which works purely on the cloud kitchen business model. With its strategies, Eat Sure generated revenue of ₹859 crores (US$110 million) in 2022 .

3. Find a Suitable Space

Choosing the right place for your cloud kitchen is highly crucial. Brands should look for a commercial kitchen space that meets their specific needs in terms of size, location, permits, and infrastructure. Further, you must also ensure that the space has all the necessary utilities like water, electricity, ventilation, and more.

4. Get the Necessary Permits and Licenses

Once you have chosen the location, you will also need to obtain the necessary permits. The permissions will depend upon the area you select. These are very important to ensure your business does not get involved in legal trouble.

5. Create A Menu

Creating a menu that aligns with your target market is another critical step. When creating the menu, ensure it meets your audience’s preferences. The menu should be diverse, offer high-quality ingredients, and be efficiently prepared and delivered even under the limitations of the cloud kitchen model.

6. Set Up Kitchen and Hire Staff

Now it’s time to set up your kitchen with the necessary tools and equipment. Also, to provide good quality and tasty food, you would also be required to hire an experienced staff who can operate your cloud kitchen.

7. Plan Cloud Kitchen Marketing Strategies

Once everything is set up, you must take your brand to the target market with engaging marketing strategies. It should include reaching out to the people through social media platforms, building a website or app, and other tips to increase food delivery business sales .

Important Factors to Consider When Starting A Cloud Kitchen Business

Before you start building your cloud kitchen business, there are a few factors that you must consider to avoid any mistakes and to launch your brand smoothly. Some of the factors include:

• Market demand: Analyze the market demand in your area for restaurants that deliver food and operate online. To ensure enough consumer demand to support your cloud kitchen business, research your target audience, their tastes, and the competition.
• Location: Pick a prime spot for your dark kitchen that is convenient for delivery partners and efficiently serves the intended audience. To ensure effective delivery operations, take into account a location’s closeness to densely inhabited areas, neighborhoods in high demand, and transit hubs.
• Equipment and infrastructure: Determine your cloud kitchen’s equipment and infrastructure needs. Make sure the cooking area conforms with health and safety laws, has adequate ventilation, and has utilities. To satisfy your food business’s particular requirements, invest in high-quality cooking equipment, storage space, and packaging materials.
• Operational efficiency: Planning and streamlining your operations will help you run them as efficiently as possible. Improve procedures such as order management, inventory management, food preparation, and delivery logistics. Use technology to automate and streamline business processes, such as order management software and delivery tracking tools.
• Cost study: To determine whether your virtual kitchen business is financially viable, perform a detailed cost study. Consider the cost to develop a food delivery app , kitchen rental, machinery, personnel, utilities, license fees, marketing, and continuous operational expenses. To attain profitability and sustainability, ensure your revenue estimates match your costs.

Boost Your Restaurant Growth with Cloud Kitchens

Ghost kitchens provide an attractive investment opportunity for restaurants looking to minimize costs and maximize profits and for startups who want to enter the online food industry. With a focus on efficient operations and technology-driven management, virtual kitchens help restaurant owners deliver quality food to consumers while reducing overhead expenses. 

Empower Your Cloud Kitchen with a Customized App Solution

Whether you are a startup wanting to enter the online food market or an existing brand planning to invest in cloud kitchens, we are here to help you. With our excellent on demand food delivery app development services , we can provide the perfect platform for any cloud kitchen business looking to attract customers and expand its customer base.

With ValueAppz’s expertise and experience in building robust mobile apps, restaurants can enhance their delivery operations and lend a great experience to their customers.

Contact us now to build a solid food delivery app for your cloud kitchen and get started.

Key Takeaways

• Cost Efficiency and Flexibility: Cloud kitchens cut costs and adapt quickly by ditching physical spaces.
• Data-Driven Success: They thrive on data analytics, shaping menus and operations for better results.
• Personalized Convenience: Focused on tailored experiences, they offer personalized menus and swift delivery.
• Virtual Brands for Expansion: Multiple brands under one roof allow for easy experimentation and market expansion.
• Tech Integration and Partnerships: Their success hinges on technology and collaborations for efficiency and reach.

Frequently Asked Questions

Q1. is cloud kitchen profitable.

Yes, cloud kitchens offer a lot of potential for profitability. Also, its operations can be scaled much faster than dine-in restaurants.

Q2. What is the Average Monthly Cost for a Cloud Kitchen?

The average monthly cost depends on several factors: location, size, equipment, and services rendered. 

Q3. Can a Single Person Run a Cloud Kitchen?

A cloud kitchen only requires a few people to run the operations. You can quickly run the business with 4-5 people who would focus on preparing and delivering food orders.

Q5. How do Cloud Kitchens Work?

Cloud kitchens, also known as ghost kitchens, are models of food businesses with no physical storefront. They operate solely by preparing and delivering food.

Q6. Are Cloud Kitchens Suitable for all Types of Restaurants?

Cloud kitchens work best for restaurants that have a strong delivery business or for those whose business model is delivery-only operations.

Harjyot kaur

As a technical content writer my focus is on creating high-quality, engaging, and informative content that simplifies complex technical topics. Throughout my career, I have continuously pursued opportunities for growth and development, refining my skills and expanding my knowledge base.

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The A-Z of building a successful cloud kitchen business model in India in 2022

• May 6, 2022

Gone are the days of restaurants and dining out being the only option to travel beyond the everyday home food and the kitchen. If you look around these days, seeing food aggregators such as Zomato and Swiggy running round the clock to deliver the freshest food right at the customer’s doorsteps, is a common sight. 

Not only has this driven a trend among consumers, but it has also left the food entrepreneurs, the small restaurant owners, and people in the food industry, gaping at the growing trend of the online ordering business. The number of users of the online food delivery system is expected to grow up to 2.9 million users by 2026. 

Now imagine a sector completely dedicated to these consumers and the online delivery system. 

That’s where cloud kitchens come in. If you’re a  foodie, a food entrepreneur, a food truck owner or someone interested in gaining revenue by tapping into the online food delivery market, this is the blog for you. 

Our team at Foaps have considered industry trends, experience and statistics to curate the ultimate guide consisting of cloud kitchen business models, plans, examples and cost of setting up a cloud kitchen in India. 

So, let’s get to the basics first. 

What is a cloud kitchen model?

A cloud kitchen or a ‘ghost kitchen’ is called so, due to the physical visibility it lacks, to the public.. Unlike restaurants that offer dine-in, cloud kitchens are devoid of all the setup. In fact, cloud kitchens require minimum equipment, such as space and kitchen equipment, compared to the lavish decor that restaurants use. 

So, how does the cloud kitchen business plan work in India? Actually, the entire concept of cloud kitchen is reliant on online delivery. The cloud kitchen is essentially the entire set-up, with no space for dine-in. Being delivery oriented, a cloud kitchen either sets up its own website for online delivery or ties up with Zomato , Swiggy or other food aggregators etc. With minimal investment, a cloud kitchen saves money, can be expanded to different outlets, utilizes technology for customized and personalized offers, and offers competitive pricing to customers.  

In short, orders come in, the chefs are informed, the food is ready, packed and placed at the hands of the delivery executive who lands it at the customer’s door. 

Starting a cloud kitchen business model in India: Types of cloud kitchen model 

The operation of a cloud kitchen is uniquely different, compared to traditional kitchens. Cloud kitchens maximize their use of technology for marketing, customer acquisition, delivery and so on. For instance, multiple restaurants can be run in the same space, as different cloud kitchens. Or, one cloud kitchen can run under multiple brand names, creating ‘virtual kitchens’. A cloud kitchen’s menu is optimized such that it is easy to prepare, and retains the best quality when it reaches the customer’s doorstep. 

As a commercial virtual kitchen that decides it’s working hours, menu and the type of customers to cater to, here are some cloud kitchen models to assess before getting started, 

1. Independent cloud kitchen

As the name suggests, behind the cloud kitchen is a single brand that is dependent on an online ordering system for their orders. With a small team of chefs, definitive operative hours and a brand name, independent cloud kitchens have a business model that is self reliant, and is hosted on different food aggregators as a means to acquire customers. 

2. Hybrid cloud kitchen 

Being a hybrid of takeaway and cloud kitchen, a hybrid cloud kitchen can be visualised as an extension of the regular cloud kitchen. Instead of being tucked away in a space with kitchen equipment, hybrid cloud kitchens also have a storefront that allows customers to receive their takeaway parcels. In short, a single brand with a single kitchen, can have multiple outlets in a hybrid cloud kitchen. The delivery is either through the in house staff or through food aggregators. 

3. Food aggregator owned cloud kitchen

If you thought the competition was tough among food entrepreneurs, in recent times, we have food aggregators entering the cloud kitchen game. Aiming at the revenue and growing popularity of cloud kitchens, there are several food aggregators that lease out or purchase a convenient kitchen space to a growing food brand or one that’s new in the market. This is a win-win situation for both, as the food brand acquires customers and has a sponsored delivery by the food aggregator. In turn, the company received business by only having invested the rent space for the cloud kitchen and avoiding all other costs. 

4. Multi brand cloud kitchen 

This cloud business model is a combination of different brands under the same kitchen. Imagine a menu with assortments from pasta to desserts, but outsourced from a single kitchen, under different brand names. This form of cloud kitchen utilizes resources effectively and keeps operational costs low. Flexibility is an important part of such multi brand cloud kitchens as they cater to the local food demand in any area and uses marketing data insights to include different type of cuisines and to maximize profits. 

5. Outsourced cloud kitchen

As the newest entry to the cloud kitchen game, this cloud kitchen business model is solely dependent on outsourcing of the food and the delivery services. A restaurant or any other business can outsource almost part or all of the menu such that the prepared product is recieved at the restaurant. The restaurant then packs the item and hands it over to the delivery personnel. The operational cost for the in-house team is greatly reduced as everything from preparation, to delivery is handled by the outsourced group. 

How to set up a cloud kitchen business model in India: 7 steps to follow 

With the right budget, the required resources, and the right marketing a cloud kitchen model can soon be bringing in profit for anyone if it is a startup. Some cloud kitchens examples in India include Faasos by Rebel Foods , Freshmenu , Behrouz Biryani and so on. 

One can gain considerable insights by assessing the journey of these cloud kitchen startups and how they managed to rise to popularity. That apart, here are the main investments, licenses, location and other aspects of a cloud kitchen model to keep in mind, while considering a cloud kitchen startup in India. 

1. Choosing the right rental space

Cloud kitchens pride themselves on the reduced budget required to set one up. The main reason for the low investment is the rental space. However, choosing the right rental space, that is, ensuring that there is proper sanitation, water supply and maintenance is very crucial. The location of the cloud kitchen matters, and is mostly based on the demographics of food ordering and the type of food the cloud kitchen caters to. Cloud kitchen startups in India are usually deployed on the basis of the demand, customer demography and the type of food produced by the cloud kitchen. In short, it is advised to choose a place with the best demand for the services your kitchen offers. 

2. Licenses and trademark registration

Licensing is a crucial part of any set up due to the legal regulations and to keep a worry free business running. Having the proper license can save the cloud kitchen model from any legal difficulties and also let customers know of the high quality of the food and sanitation offered by the cloud kitchen. Showcasing the licenses or badges on websites boosts customer trust. Some of the licenses to procure before starting out with a cloud kitchen business model include, 

• GST registration
• Trade license
• Fire and safety license 
• FSSAI (Food Safety and Standards Authority of India) license 
• Trademark registration

Having these licenses can assure any owner that their cloud kitchen startup can sustain any legal difficulty, hence allowing them to focus more on business operations. Compared to cloud kitchens, the owners require more licenses to open a traditional restaurant . Having a trademark registration is crucial in a competitive environment, as the brand name, and logo are extremely crucial for developing customer and brand loyalty. 

3. Deciding the cuisine 

The competition among cloud kitchen startups has a huge difference with respect to traditional dine in kitchens. Often, cloud kitchen models are known for a particular type of cuisine they offer and the quality of the food. Deciding the main type of cuisine to be prepared is a crucial factor. This decision should be backed by proper analytics, resource analysis, ease of procuring raw materials, staff management and so on. 

4. Kitchen space, equipment and raw ingredients

The type of equipment required depends on the cuisine offered by the cloud kitchen. One can save costs by setting up a kitchen with the right electronic equipment for preparation, and acquiring second hand or old tables. In the case of multiple brands under the same kitchen, there could be cost saving due to shared kitchen equipment such as chimneys, burners and so on. One can even outsource a cloud kitchen with basic equipment and upgrade on the basis of needs. 

In terms of quality of food and packaging, these form the hallmark qualities that customers look for, in cloud kitchen startups. Due to the lack of in-house dining and dish presentation, packaging plays a crucial role. Invest in sturdy packaging that preserves the quality of the food and uniquely sets your brand apart. If possible, it is advised to go for eco-friendly packaging. It is also best to source local ingredients or have a separate budget for procurement of raw materials that have a good quality. Better the ingredients, better the quality and your chance of retaining customers in the cloud kitchen business model. 

5. Online Order Management System 

The majority of the business model of a cloud kitchen startup is based on food delivery aggregators like Swiggy or Zomato. It is heavily dependent on the number of orders, proper tracking and preparing and apt delivery. Imagine having to manually write down each order from a different food aggregator, and convey it to the staff. This can disrupt the smooth functioning of your cloud kitchen due to the possible errors, lack of proper information and so on. 

Before this drawback hurts your rush hours, we recommend having a restaurant online order management system that best fits your restaurant. 

Here’s how Foaps, online order management system , helps manage your business: 

• Centralized dashboard for management of online orders- Manage, track and analyse orders from Zomato, Swiggy and other food aggregators, all in one dashboard
• Track orders- Update the progress and delivery updates of individual orders in one click
• Menu availability on all platforms- Update and have your menu distributed on all platforms
• Revise pricing and update menus with one click- Inform customers of any dishes that are sold out, bestsellers of the day, and revise pricing, across different platforms with one click on the dashboard
• Manage multiple food delivery partners- with any new food delivery service in the game, forget all the hassle of a tie up, as Foaps helps you tie-up with any food aggregator easily 

6. Staff requirements

While starting out, it is recommended to have a basic staff setup of 1-2 chefs, one person to manage the billing, any queries on telephonic calls and one for marketing. Having 1-2 people for housekeeping and maintenance of the cloud kitchen is necessary. As the profits rise, the staff can be scaled up on the basis of need. 

7. Marketing  

With a cloud kitchen business model, the only limitation lies in physical marketing, but these industries are free to tap into the potential of online marketing. There’s no fixed platform that works best for marketing and it is advised to deploy a mixture of marketing methods to find what works best for your cloud kitchen’s discovery. Some marketing methods to deploy include, 

• Online listings- apart from the listing on food aggregator platforms, it is beneficial to have your listing on Google, Yelp and other websites that can help increase visibility
• Social media- the target audience of this generation is mostly on social media, and is drawn towards creative, smart marketing. Ensuring your brand’s presence vocally and visually on social media guarantees a chance for brand recognition
• SMS and email marketing- the era of personalized offers drives the competition market today, and despite having no physical location, ensure that your SMS and email marketing campaigns include online discounts, rush hour discounts and so on to boost frequency

What are the costs associated with a cloud kitchen business model in India?  

The costs of starting cloud kitchen in India can vary depending on the city chosen, the demographics, the type of cuisine offered and so on. Here’s a rough outline of the costs that might come up and a rough estimate of how much they amount to.

The resources one would have to be spending in a cloud kitchen business model include, 

• Rent: This mainly depends on the location and the land prices. A space of 600-800 sq feet is considered sufficient for a cloud kitchen model and may range from ₹25,000-50,000 
• Licences: The basic and necessary licenses cost around ₹15,000-20,000
• Staff: Having a basic set of staff can cost around ₹50,000-85,000
• Kitchen and equipment: This is solely dependent on requirement and can range from ₹5 lakh from scratch to around 8 lakh. Basic kitchens can also be outsourced. 
• Online ordering system: Many ordering systems allow customisation on the basis of features required, and these can range from ₹4,000/year to around ₹6000
• Customer acquisition and social media presence: Based on paid and organic marketing, this may cost around ₹40,000-80,000 per month
• Branding and packaging: As packaging is the crucial thing with cloud kitchen startups, branding across social media, food aggregators and effective packaging can cost around ₹50,000-70,000

To go virtual or not to: Tapping into the potential of the cloud kitchen market in India 

The changes in customer food ordering trends saw a rapid rise due to the pandemic, but the trend is only projected to continue in the years to come. Cloud kitchens have their own set of advantages and disadvantages, and it is wiser to compare the pros and cons before jumping on setting up a cloud kitchen business model. 

In India, the average annual cost of setting up a restaurant is almost 3x more than the set up of a cloud kitchen, steering good entrepreneurs and food aggregators alike to jumpstart on this side of the competition. 

Regardless, it is always recommended to not follow the herd and go with the requirements your business needs to succeed. Assessing market trends, costs required, estimating the funding required, security, profitability in the long run are topics to consider before getting started on a cloud kitchen model. 

Here at Foaps, we pay attention to the most minute parts of your business to assure you an easy order management system.  With Foaps, you can manage more orders at a time from different food delivery aggregators which will make your job a lot easier, and will eventually help in increasing the revenue.

Would you like to learn more about Foaps? Start your 30-day free trial now.

Cloud Kitchen Financial Model Template

Cloud kitchens, also known as ghost kitchens, are a very popular business model these days. The rise of online ordering, lower investment requirements, and increased flexibility make it a smart way to test out new culinary ideas or take advantage of current trends without breaking the bank.

Most people interested in opening a ghost kitchen are less interested in the prospect of putting together a financial plan for the business, and who can blame them? This is where Poindexter comes in. Our software makes the process of creating a financial plan as simple as possible. Creating a plan only takes minutes, whether you're creating a business plan for investors, applying for a loan, or just want to test the viability of your ideas.

How the Ghost Kitchen Financial Model Works

Poindexter is built to remove the complexity that comes with financial modeling in spreadsheets. There won't be any complicated equations or reports to configure here. All you need to do is insert some of our pre-built business model components, adjust a few assumptions and you're all done! This template is intended to be used as a starting point for your cloud kitchen, so you can quickly remove, add or modify any aspect in seconds.

To get you started, we've included some basic financial assumptions most cloud kitchens can expect to encounter.

Revenue is calculated based on forecasts for the number of orders coming in from three different channels: Uber Eats, Door Dash, and the company website. The revenue from each channel is broken out separately, but you can just as easily combine them all into one revenue calculation, separate them further by each product, or forecast revenue using some other metric entirely.

Costs are generally split into two categories: fixed costs and variable costs. We've included some examples of each type so you can see how they work and quickly add the costs you'll need. Fixed costs tend to be more straightforward and include things like rent, utilities, and salaries. Variable costs are those that grow (and decline) along with revenue, such as the transaction fees from Uber Eats and Door Dash, both of which we've included.

Investments in equipment are often one of the biggest startup costs for restaurants, and we've included an example purchase of generic kitchen equipment to show you how easy it is to add these transactions to your plan.

Full Pro Forma Financial Statements for Your Cloud Kitchen

Based on the simple business model components and assumptions you've chosen, Poindexter automatically produces a complete financial analysis including full pro forma financial statements. Some of the reports you can expect include:

• Income Statement (P&L)
• Balance Sheet
• Cash Flow Statement
• Summary Dashboard
• Charts & Graphs

There are also multiple options for sharing your plan with others once it's time. You can invite collaborators to edit alongside you, share a private link with read-only access or download everything to Excel for further analysis, presentations, and more! Try it out today! It's free to try so there's nothing to lose.

What Our Customer are Saying

How to Start a Cloud Kitchen Business?

• Business Plan Cloud Kitchen
• What Is a Cloud Kitchen?
• Advantages of Cloud Kitchens for Restaurants
• How To Run A Successful Cloud Kitchen Business
• Cloud Kitchen Business Model
• How Much Will It Cost to Start a Cloud Kitchen?
• Jignesh Shah
• October 30, 2023

Summary: Owing to the high competition, excessive startup costs, complex regulations and red tape to start an on-premise restaurant business, people are exploring options in Cloud kitchen. It has huge potential as people find it the safest and easiest way to get their delicious food served and delivered at their convenience. The cloud kitchen aka dark kitchens, ghost kitchens, virtual restaurants seems beneficial for startups who do not want to start and experiment with new initiatives with less upfront opening costs. So, we are here to boost your effort. Explore this guide on how to start a cloud kitchen business and make it successful.

Do you want to start a ghost kitchen or cloud kitchen? Or, are you exploring how to start a cloud kitchen? Or, is it something that you want to know if starting a cloud kitchen is beneficial? Yes…! From skilled staff and kitchen equipment to restaurant locations and interiors, you need to invest a hefty amount of money. Whereas, a virtual kitchen can be the best option with less investment. But, if you want to make a good profit in F&B space without investing a large amount of money, starting a cloud kitchen is the right option at this moment.

Starting a cloud kitchen is the most important beneficial business nowadays. But, not all of them are so successful. The reason is implementation. Many entrepreneurs with great ideas to start a ghost kitchen fail to implement. They just bounce before they leap. Companies are not able to implement business ideas with proper execution plans.

In this article, we have primarily discussed how to set up a cloud kitchen and how much it will cost to start a cloud kitchen business. You will explore the following points;

• Cloud Kitchen Market
• How to Start Cloud Kitchen Business
• How Much Will It Cost to Set Up Cloud Kitchen Business

What is a Cloud Kitchen?

A cloud kitchen is part of the restaurant industry that primarily offers online food delivery and takeout —the same like a common restaurant does. But, a cloud kitchen or ghost kitchen does not need to have a storefront with dine-in space as it can be started in home with a little kitchen space. You don’t need to manage staff or even hire people while eliminating front-of-house labor and overhead. You just need to create a healthy and delicious menu, connect with food delivery partners or build your own food delivery app and start serving people.

In one line, a cloud kitchen is a commercial kitchen that offers online food delivery and takeout services.

With ready to implement cloud kitchen software , Foodiv is a reliable technology partner for all online food ordering, delivery and management needs. Connect with us as we offer you quality driven and performance oriented cost effectively.

Cloud kitchens have several Benefits, including:

You would ask, why the cloud kitchen business model? Well, it’s a quick way to enter the restaurant business and comparatively cheaper. Believe it or not, the revolutionary business is going places with the ease of establishment and simple operation it offers.

Here are some core benefits of the delivery-only kitchen.

• A cloud kitchen is cost-effective because the business solely engages with the financial investments of kitchen staff and delivery agents. There is no need to spend a handful on hosts, servers, valets, etc. Thus, the operational cost reduces to a minimum.
• More brand exposure at a minimum cost. With a cloud kitchen business model, restaurateurs can start multiple brands without changing locations or investing a wholesome in a new brand. For example, a cloud restaurant offering Mexican cuisine can now set an entirely new brand for Thai cuisine without extending its menu! An entirely new brand with nominal cost.
• Flexible menus are a chef’s kiss to the list of advantages. Cloud restaurants can experiment with changing menus without the burden of updating physical menu cards! Also, it lowers the cost to create a menu every time it’s updated!
• Data tracking helps the restaurant owner to save additional expenses by scrapping items with fewer orders, executing new strategies to gain customers, and so on. In simpler words, the business will be able to meet demands with efficiency and lower wastage.

Tips to Setup Successful Cloud Kitchen Business

Running a cloud kitchen isn’t tough, but it requires a whole lot of effort to make it successful. The journey begins right with building a strong and bulletproof workflow. So, while you are determined to start a food delivery business and make it successful, take a look at the steps involved in setup cloud kitchen business.

Online ordering in a cloud kitchen setup

The primary source of ordering in a delivery-only restaurant is online. The online restaurant can receive orders in multiple ways like online food apps, websites, and even via telephone calls.

A cloud kitchen POS is a must in this system because without it, accepting and managing orders becomes difficult.

Processing an order in an online food delivery system

Once the orders are received online or via telephone calls, the next step is to process them. The significant difference lies in maintaining a unique taste and customization according to customers’ needs. To solve this order processing issue, ghost kitchens designate different teams of chefs for various cuisines or brands they run in the space.

It is here that the POS is used the most. The POS kitchen display system displays the received orders and additional cooking instructions directly in the kitchen. The kitchen staff can easily view the details and prepare the order accordingly.

Once the order is complete, the chef can mark it as “done” and send it through packaging. In brief, every stage from receiving orders to preparation, packaging, and dispatch is recorded in the POS. The collected data can be viewed and analyzed later to improve the cloud kitchen business.

Additional Reading :   Why Cloud Kitchens Need an Online Ordering System

Kitchen staff for cloud kitchen

For running a successful cloud kitchen restaurant, you need the best chefs. The main goal of virtual kitchens is to keep the customers happy and satisfied by delivering flawless meals, the majority of investment should be put to hire the best chefs. Since there is no dine-in, restaurateurs can skip hiring wait staff, hosts, and other personnel.

Apart from skilled and talented chefs, restaurateurs need delivery personnel if they want an in-house delivery system in their cloud kitchen setup.

Supply management

Having a robust supply management system is necessary if you want to establish a successful ghost kitchen . There is no difference between the supply management of a cloud kitchen and a commercial kitchen. However, restaurant owners need efficient management of suppliers.

Depending on the restaurant’s requirements, there can be one supplier for one brand, and another for a different brand. If the base ingredients are the same, then one supplier can take care of everything.

Inventory management for delivery-only kitchen

Having multiple brands under a single cloud kitchen business can be difficult to manage. However, with the right checks and numbers, inventory management can become easy. A smart POS can help restaurateurs to handle inventory with care.

POS enables viewing and managing inventory at any point in time. Thus, helping with keeping daily stock consumption in check. Also, based on the requirements, purchase orders can be raised for each brand.

Location for Cloud Kitchen

Even though location does matter the most for cloud kitchen business, you can choose the location based on your target customers and market. As far as having space is concern, you don’t need to have a prime location with appealing storefront space. You can start it in a room or even in underground, basement, parking and other spaces.

Essential Kitchen Appliances for Cloud Kitchen

Yes, you need to have proper kitchen equipment but it will be different from restaurant kitchen equipment. For example, you need;

• Exhaust hood
• Fire suppression system
• Refrigerators and freezer
• Cooking range
• Commercial fryers

They are the common equipment that you need to have to start a cloud kitchen business.

Start a Cloud Kitchen Business, Hassle-free

To start a cloud kitchen business you first need to set up the online  cloud kitchen ordering system that can be accessed via internet and smartphone. It is a high profit-margin business, but it’s slightly different from traditional restaurants.

See how to kick start a cloud aka virtual kitchen or ghost kitchen with no hassles.

• Know your customers before starting the business. Understanding the demographics is the first step to running a cloud kitchen restaurant successfully.
• Find the base concept of the kitchen. Start looking for what your customers want. Know the preferences of your target audience through online surveys, social media campaigns, etc.
• Gain experience in accounting, management, marketing, and more apart from cooking.
• Competitor analysis will help you establish a better delivery-only kitchen.
• Bear the initial cost of setting up the virtual kitchen. Although the total cost will be 40 – 50% less than building a brick-and-mortar dine-in restaurant, proper financial arrangements are required.
• Get an FSSAI license. This license regulates everything from food storage to preparation and delivery. The validity of the license lasts from one to five years, depending on how you plan the periodical renewal.
• Spend a handful on properly equipping the kitchen. For example, you need to invest in electronics like ovens, microwaves, utensils, plumbing, burners, and much more.
• Equip the cloud kitchen with upgraded technology like mobiles, laptops, tablets, POS, etc., to efficiently manage everything from receiving orders to delivery.

Other essentials of running a successful online ordering system are proper packaging, pandemic precautions, and an organized delivery system.

Read more about the Ghost Kitchen Mistakes You Should Avoid

Most Popular Cloud Kitchen Business Models

There are six types of cloud kitchen business models. Every model is different from the others based on budget, brand, scalability, efficiency, and more. Let’s look at the most popular cloud kitchen business models.

Brand-owned cloud kitchen

One brand owns a single cuisine kitchen with a delivery-only model. Simply, there is no takeaway and no dine-in. The upfront investment cost is low as there is no additional space to occupy diners or their vehicles.

Separate dine-in

There is an existing dine-in with a side hustle for delivery or takeaway. Here, the menu is the same, but the dine-in and delivery production lines are different. However, the upfront cost is low until restaurateurs need new processes, additional employee staff, etc.

Separate dine-in with shared kitchen space

The cloud kitchen business model has a separate dine-in operation. Well, the kitchen is physically removed from the dine-in space and it is operating in a shared kitchen. The upfront cost of this cloud kitchen restaurant model is medium because one needs to rent the shared space, equip it, and make it functional. Moreover, the dine-in has to be maintained and operated as well!

Hub and spoke

There are multiple variants of this cloud kitchen. It includes a single brand, shared kitchen, sometimes multiple brands, and so on. Each of the units has a centralized production space! Well, the upfront cost is high because of a centralized kitchen, labor cost, pop-up locations, etc.

Multiple virtual brands

Here, one cloud kitchen business runs multiple brands under its hood. It is a deliver-only model, with no dine-in or takeaway. The upfront cost can be low or medium depending on their equipment, large spaces, high rent, etc.

Shell kitchen

Final Words

To run a successful cloud kitchen business, one has to start working hard right from the scratch. The initial steps include finding the right cloud kitchen model for the business, a mobile app development company to facilitate professional platform creation, budgeting, and more.

So, if you are planning to start an online food ordering system for cloud kitchens, find experts like Foodiv , who have already designed, developed, and launched a hundred similar platforms.

Get started today!

FAQ About Cloud Kitchen Business

Are cloud kitchens profitable.

About 20% of cloud kitchen businesses make handsome money. So, if you want to be part of the top 20%, start by outlining your goals, finding a proper solution, deciding the business model, and so on.

What are the essential licenses required to run a cloud kitchen?

You need these licenses to start a cloud kitchen – FSSAI, GST, Fire & Safety, and Trade license.

How bright is the future of a cloud kitchen business?

The cloud kitchen industry is rising with the advancements in online food delivery systems. Since a majority of the people like ordering food online rather than dining in jam-packed diners, the industry will upscale quickly!

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Cloud kitchens: What is a cloud kitchen & how to start it?

A cloud kitchen is a shared commercial kitchen space for businesses that mainly focus on preparing foods for delivery ...

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A cloud kitchen is a shared commercial kitchen space for businesses that mainly focus on preparing foods for delivery or takeout only.

• Cloud kitchens house different restaurants in one space where they can simultaneously work or collaborate.
• Cloud kitchens receive orders and deliver their products to consumers online through third-party services.
• FoodDocs smart food safety solutions cover all food safety compliance needs of cloud kitchens.

Food delivery services have become increasingly popular in recent times, especially after the effects of the global pandemic in late 2019. The best example of innovations related to food deliveries is the rise of cloud kitchens. The cloud kitchen concept is not novel but has been improved since its launch in India in 2003.

Its popularity among business owners significantly comes from the concept's lower overhead cost and very high returns. The global cloud kitchen market gathered around $57 billion in 2021 and $63.9 billion in 2022 . The market growth is expected to increase further in the next years. With this much growth, it is not surprising to see cloud kitchens popping up everywhere.

In this article, we go into detail on what cloud kitchens are and how you can maintain food safety and profitability at the same time. The quick answer would be to use our digital HACCP plan builder and HACCP-based Food Safety Management System . Learn more below!

Here is a list of what is discussed in this blog post:

WHAT WE'LL COVER:

What are cloud kitchens?

What is the cloud kitchen concept, how does a cloud kitchen help your restaurant grow, what are the pros and cons of a cloud kitchen, what are the different types of cloud kitchens, what are the different cloud kitchen pricing models, how much do cloud kitchens cost, how to start a cloud kitchen, what is an example of a cloud kitchen, how to ensure food safety in a cloud kitchen, fooddocs covers all food safety needs for a cloud kitchen with smart solutions, frequently asked questions (faqs).

In this section, we discuss what cloud kitchens are and the following topics:

How do a ghost kitchen and a cloud kitchen differ?

What is the difference between a restaurant and a cloud restaurant.

A cloud kitchen is a c ommercial cooking facility where different restaurant brands that are designed for delivery only can simultaneously work or collaborate. They are otherwise known as virtual kitchens, ghost kitchens, shadow kitchens, or dark kitchens. The cloud kitchen concept uses a commercial kitchen layout that allows cloud kitchen operators to prepare and deliver food without the need for a physical restaurant or dining space.

The cloud kitchen concept basically removes front-of-the-house operations for a business that involves dining service. Customers can order online directly from the kitchen system or through delivery apps, and the cloud kitchen will prepare, package, and deliver the product. Delivery is either done through in-house logistics or a third-party service.

The concept of using cloud kitchens opens more possibilities for food business owners. It allows aspiring business owners to reduce overhead costs by removing expenses from establishing a physical dining space. A huge part of the yearly profit normally goes into maintaining the storefront and managing customers.

A ghost kitchen is a type of restaurant that focuses on preparing dishes for delivery, whereas a cloud kitchen is a shared commercial facility that accommodates multiple restaurant brands to produce their products.

While ghost and cloud kitchens have a lot in common, they have very subtle differences.

Below are more specific differences between the two terms:

Ghost Kitchen

A ghost kitchen is one type of restaurant concept that exclusively focuses on the online delivery of food.

Ghost kitchens mainly operate without a dining section. The establishment is delivery-only, and all of its facility is dedicated to preparing food products. It is sometimes referred to as a virtual restaurant.

A ghost kitchen normally operates under one management and brand. It can be owned by a traditional restaurant and act as an extension of the main facility.

Cloud Kitchen

On the other hand, a cloud kitchen is a type of shared kitchen space that can accommodate different restaurant brands at once. Similar to a ghost kitchen, a cloud kitchen only operates for food deliveries. The difference is that multiple brands of the same or different companies can operate in a cloud kitchen.

Cloud kitchens are normally used by restaurant brands as a solution to expanding their delivery reach. This solution will not add to the high overhead costs associated with opening a branch of a traditional dine-in restaurant.

Both cloud and ghost kitchens have their own advantages. Their suitability will depend on the needs of a restaurant owner. While both types of establishments cater to large-scale food operations without a dining part, cloud kitchens are often used for short-term operations compared to ghost kitchens.

In terms of food safety, both types of kitchens have their own requirements. A cloud kitchen is expected to require stricter rules as different restaurant brands may have completely different operations, which could promote cross-contamination or cross-contact  between products.

The main difference between a traditional restaurant and a cloud restaurant is that a traditional restaurant typically has a physical storefront and provides dine-in service, whereas a cloud restaurant operates online and delivery only, without a physical dining area.

The lack of a storefront significantly changes the dynamics of a cloud kitchen. The managing team will have to focus more on things like delivery and marketing.

Here are some key differences between the two types of food businesses:

Physical presence. A traditional restaurant has complete front and back-of-the-house facilities, whereas a cloud kitchen does not have a dining area.

• Property size. Logically, a traditional restaurant will have a greater facility size to accommodate a dining area and even a parking space for customers. On the other hand, a cloud kitchen will only need space for food preparation that will only require an average of 600-700 sq ft.

Customer interaction. Cloud restaurants typically rely on online ordering and delivery services, which offer limited customer interaction. On the other hand, traditional restaurants can attract customers through on-site interactions, especially with high foot traffic.

Overhead costs. Traditional restaurants have to spend more for a physical location, equipment, staff, and other expenses associated with maintaining a storefront. Cloud restaurants, on the other hand, have lower overhead costs because of the lack of physical storefronts, which means less service staff for front-of-house operations. This is the most notable advantage of cloud kitchens.

Extensiveness of the menu. Traditional restaurants typically have a more extensive menu with a variety of options for dine-in, takeout, and delivery. In contrast, cloud restaurants offer food dishes that are built for delivery.

Business model. Traditional restaurants can use a combination of dine-in, takeout, and delivery services to generate revenue, whereas cloud restaurants can only do business online and rely on delivery services for revenue.

• Marketing modes. Cloud kitchens typically rely on social media and other online promotions for marketing, whereas traditional restaurants can use both online and in-store marketing strategies.
• Profit margins. Without the overhead cost of a dining section, cloud kitchens are estimated to accumulate at least 15-20% profit margins. On the other hand, traditional restaurants generally get an average of 3-5% profit margins.
• Food safety requirements. Requirements and regulations related to food safety for a cloud kitchen are more focused on back-of-the-house operations. Significantly less monitoring of hygiene checks for dining areas will be needed for cloud kitchens when compared with a traditional restaurant.

While there are several differences between traditional restaurants and cloud kitchens, the requirement to comply with food safety regulations stays the same. What food business owners need is a food safety management system that can work for both types of food operations.

Use FoodDocs' digital Food Safety Management System to maintain compliance with all food safety regulations for your business. With our smart software, you can get a quick overview of your entire production status, whether you are operating a traditional or a cloud kitchen. You can save time by managing your team and focusing more on improving other business aspects.

You can use our automatically generated monitoring forms and integrate them with temperature sensors for faster information recording. Make monitoring and food safety compliance more efficient with our digital Food Safety Management System .

Cloud kitchens provide shared kitchen space for delivery-only restaurants where they can test their operation expansions. A typical cloud kitchen is equipped with industrial cooking equipment that can cater to large batches of food production. This type of kitchen can have multiple yet similar spaces for creating products with the same process or highly diverse kitchen sections.

Different food brands can use a cloud kitchen through different payment modules. They can also share the same facility with other brands at the same time, which can significantly reduce the total overhead cost of using the facility.

Cloud kitchens work with the help of food aggregator apps or food delivery apps where the orders are received and collected. Similar to a traditional restaurant, a cloud kitchen works on an order basis. The food is prepared, packed, and delivered to the ordering customer with the help of a delivery service provider.

Cloud kitchens allow food businesses to focus on the quality of their food and delivery services without the added pressure of managing a physical restaurant space.

A cloud kitchen is often used to aid an existing restaurant business in expanding its operations and reach. Cloud kitchens can help produce more food products and cater to more customers without the need to establish a dining area or hire more staff.

Cloud kitchens help provide efficient and cost-effect ways for restaurants to reach more customers without the need to establish a physical dining space.

Other benefits that come from using cloud kitchens can be used to improve marketing strategies and determine how to serve customers better with better products.

To better understand how a cloud kitchen can help your business grow, we show you the main pros and cons of using this type of food facility below.

Reduced overhead costs. Cloud kitchens do not need to spend on maintaining a dining section. This allows restaurants to allocate more resources toward food quality, marketing, and other business development activities.

More flexible operations. Cloud kitchens allow restaurants more room for creativity in making products. Restaurants will not have to commit to additional facility equipment to accommodate a new product.

Wider reach. By partnering with online food delivery platforms, cloud kitchens can reach a wider customer base than a traditional brick-and-mortar restaurant. In some cases, farther locations of cloud kitchens act as an extension of your main branch. Businesses can start operating in areas where their main branch cannot reach without the need to allocate funds for dining sections.

Efficient operations. Cloud kitchens are designed for operational efficiency and streamlined processes for order fulfillment. Cloud kitchens also make monitoring easier as everything is organized in a predetermined flow.

Data insights. Online solutions that go with cloud kitchens can gather valuable data on customer behavior, ordering patterns, and feedback. This information can be used to tailor services and menu offerings to consumer demands with a more data-driven approach.

• Limited customer interaction. Cloud kitchens remove the aspect of on-site dining for customers. In a way, this aspect can make it hard for cloud kitchens to gain customer loyalty. Cloud kitchen operations significantly remove the need for in-house customer service. Without the dining experience, cloud kitchen operations rely heavily on the quality of their products.
• Dependence on third-party delivery services. Cloud kitchens are often tied to the demands of food delivery aggregators, which includes a significant markup on menu prices. Cloud kitchen operators must carefully choose their preferred delivery services that will not affect the acceptability of their product costs.
• Brand recognition challenges. As cloud kitchens only operate behind the scenes, customers have no other way of seeing how your business works or looks besides online content. The lack of a physical dining area can make it harder for customers to remember your business.
• Dependence on technology. Cloud kitchens must focus on building a strong online presence and technology infrastructure to handle the online ordering, payment processing, food safety management, and delivery logistics. Problems with devices or online platforms will significantly affect operations, and corrective actions are very limited for cloud kitchens.

While there are several benefits to operating a cloud kitchen, restaurant operators must also consider the drawbacks. The profit margin that may be generated as a result of fewer storefront operations may be significantly redirected to marketing strategies. Optimizing the benefits of cloud kitchens will significantly depend on how business owners use these benefits to their advantage.

Several types of cloud kitchens exist, each with its own unique characteristics and cloud kitchen business models. The types of cloud kitchens have diversified over the years, and each one has its own requirements and strengths.

Here are some of the most common types of cloud kitchens:

Independent cloud kitchens. Independent cloud kitchens are not affiliated with any specific restaurant or food brand. The management is solely focused on cloud kitchen services. This type of management typically offers shared kitchen space for rent to multiple independent food businesses.

Multi-brand cloud kitchens. Some cloud kitchens are owned and operated by a single company or organization and host multiple affiliated food brands under an establishment. Every food brand has its own operation, but they can share facilities and ingredients or collaborate with each other.

Franchise cloud kitchens. These are cloud kitchens that are part of a larger franchise network. This type of cloud kitchen basically specializes in the operations of a particular food business. Franchisees can use the franchisor's branding and operational support to launch their own virtual restaurant concepts.

• Aggregator-managed cloud kitchens. These are shared kitchen spaces managed by big food aggregators. Aggregators often dedicate this space to top-performing partners and help them in preparing products that bring the most traffic to the app.

Choosing which cloud kitchen type best suits your needs will depend on the goals of a food business. The success of the cloud kitchen will also depend on how well the operations are being managed and their compliance with applicable regulations.

If you are just starting a cloud kitchen business, allow FoodDocs digital Food Safety Management System to cover your food safety compliance part. You can get HACCP Plan done in 1 hour and start monitoring food safety checks in 15 minutes.

Our system can automatically generate monitoring logs equipped with detailed instructions on how to perform tasks accurately. Pair this feature with our smart notification system that alerts food handlers whenever a task is due. The notification system ensur e s that no task is ever forgotten.

Start exploring our food safety software using our free 14-day trial .

The pricing model for cloud kitchens can vary depending on the specific business model and target market. The allowed operations inside the kitchen can determine the pricing . Business owners who are looking into using a cloud kitchen must carefully assess which pricing model is best for consistent growth.

Here are a few examples of pricing models that are commonly used:

Flat fee. Some cloud kitchens can charge flat rates for renting kitchen brands. This means that there is a fixed monthly fee that must be paid regardless of well a brand works. This model is more suitable for food businesses that have a predictable daily order volume or those that have a clear forecast of their sales.

Revenue sharing. In this model, a business pays the cloud kitchen management on a commission basis. The cloud kitchen's rental fee will be determined by the number of products a brand sells. This pricing model may be more suitable for smaller or emerging restaurant brands that have less predictable sales volumes.

Membership model. Some cloud kitchens offer a membership payment basis. In this model, restaurant brands are required to pay a monthly or annual fee for renting commercial space. This pricing model may be more suitable for restaurant brands that have ongoing kitchen space needs and require additional support services.

Commercial kitchen pricing models may include charges for provided marketing tools, additional equipment requests, delivery, and other services.

Choosing the most suitable pricing model will significantly affect your net revenues. On a business aspect, brand owners must carefully consider if their business will survive with the suggested pricing model.

The startup cost of a cloud kitchen can vary greatly depending on a number of factors. On average, business owners can establish a working cloud kitchen at an average minimum cost of $13,000 . This estimated capital investment can increase or decrease depending on the location of the kitchen, its size, the equipment offered, and its services.

Here are some of the main cost considerations for starting a cloud kitchen:

Rent and utilities. Normally, a bigger space will require higher rental fees. Business brands must consider if the cost can be reduced when the number of working brands increases. Additionally, fixed utility costs such as electricity, water, and gas must be considered.

Equipment. Cloud kitchens require specialized equipment such as ovens, grills, refrigerators, and prep stations. Basically, the more extensive your list of equipment is, the more desirable your kitchen will be to different brands.

Technology. Cloud kitchens rely heavily on technology for online ordering, payment processing, food safety monitoring, and delivery logistics. This may require investment in software, hardware, and integration with third-party platforms.

Labor. A cloud kitchen still requires a long list of staff that will operate the facility. Your staff will include chefs, food handlers, and cleaning personnel. The kitchen will also need an order manager to facilitate online food delivery orders and delivery personnel.

Marketing and branding. A huge part of the capital will also be invested in marketing. Especially for a business that does not have a physical dining presence, customers can only hear about your operations through online platforms. Marketing and branding costs may include website development, social media advertising, and other promotional activities.

Overall, the cost of starting a cloud kitchen can range from tens of thousands to hundreds of thousands of dollars, depending on the factors mentioned above. In comparison with opening a restaurant , the minimal cost required for opening a cloud kitchen is significantly less. It is important to carefully consider all costs and create a detailed budget before starting a cloud kitchen.

Cloud kitchens are as advanced as it gets in the restaurant industry. As a business owner, taking advantage of the technologically advanced operations of cloud kitchens can significantly improve your business.

A good investment in technology is to use a digital Food Safety Management System . At FoodDocs, our smart software can cover both managing food safety and establishing a traceability system. Cloud kitchens can efficiently monitor the flow of their products until they are delivered while ensuring that all of them will not cause foodborne illnesses .

What is the expected profit range from starting a cloud kitchen?

Industry reports state that profit margins for cloud kitchens can range from 10% to 30%. Cloud kitchens are estimated to reach a global industry value of $1 trillion by 2030.

The very high-profit margin of cloud kitchens comes from the lack of additional overhead costs for establishing, running, and maintaining a physical storefront. Most of the costs of running a cloud kitchen go into space rental, purchasing equipment, maintenance, and back-of-the-house staff.

Cloud kitchen's profit margins can be optimized by using the appropriate marketing strategies and using the full extent of technology. These operations must be consistently monitored and maintained to ensure the success of a cloud kitchen.

In this section, we explain the basic steps to start a cloud kitchen and other essential considerations, such as the following:

How to choose the right location for a cloud kitchen?

What equipment is needed to set up a cloud kitchen.

Cloud kitchens may have significantly different dynamics when it comes to management, but the process of starting one is almost the same as a traditional restaurant.

Here are some key steps to consider when starting a cloud kitchen:

Conduct market research. A food delivery market analysis will help you determine which areas have higher online traffic and demand for deliveries. This information can help you figure out the most effective location and products for your business.

Develop a business plan. Outline the target market, menu, pricing strategy, marketing plan, and financial projections. Use this information to produce a sound strategy for promoting the business.

Secure a commercial kitchen space. The importance of this component cannot be stressed enough. Choose a space that meets your needs in terms of size, equipment, and location. If you are still testing the market for cloud kitchens, you can consider leasing a space.

Obtain necessary permits and licenses. Secure food handler permits, health department permits, and business licenses. Permits that are needed for on-site dinings, such as alcohol permits, are no longer needed for cloud kitchens.

Choose a trustworthy supplier. Secure a supplier that can consistently provide high-quality ingredients at the rate of your requirement.

Hire and train staff. The staff for your kitchen operations will mainly consist of chefs, kitchen staff, and delivery drivers.

Develop a delivery strategy. You can either partner with third-party services or establish your own delivery system.

• Establish your food safety plan. Before opening your cloud kitchen, make sure that your business has established a comprehensive food safety plan. This document will help you ensure that your products will not cause foodborne illnesses to the consumers.

Launch your cloud kitchen. Promote your cloud kitchen through online platforms and bring in traffic to your website. Invest in online systems that will help you boost your visibility online.

Continuously evaluate and adapt. Perform regular checkups and verifications on your operations. Revise any inefficient task that may be reducing your productivity.

The benefits of running a cloud kitchen can only be achieved if the business is well-equipped and prepared . Ensure that you have secured all necessary permits and licenses and that your staff is well-trained in operating a cloud kitchen.

You can also add safety precautions in your kitchen facility to promote proper food handling. Use our free Food Safety Posters to ensure that every food handling procedure is done according to regulations.

Establish your food safety plan using FoodDocs digital HACCP plan builder . With our digital solution, you can get a comprehensive digital HACCP food safety plan in just 1 hour. Ensure that your operations are equipped with the essential critical control points to prevent any potential food safety problems.

Using artificial intelligence and a machine-learning program, our system can automatically generate the essential components of your food safety plan. Customize each section and tailor them to fit your business easily.

A cloud kitchen's location can determine its operational cost, customer traffic, and proximity to suppliers. Your establishment's location is a critical factor in your success.

Here are some factors to consider when selecting a location:

Market demand. Choose an area with high food delivery demand from potential customers. The community in this area must be very familiar with the food delivery concept. Choose high-income residences and populated areas.

Accessibility. While online customers do not need to go to your business store, your kitchen's accessibility will determine the cost of delivery. The location should be easily accessible to customers, delivery drivers, and suppliers for a timely delivery. This factor includes the level of development in terms of highways and roads for efficient logistics.

Infrastructure. Check the location's access to essential utilities such as water, electricity, and gas. Consult with local health inspectors for any specific requirements when building your kitchen.

Cost. Different locations have different operational costs. Consider the cost per square foot, deposit requirements, and any additional fees for utilities, maintenance, and cleaning services.

Zoning and permits. Some locations are not fit for a cloud kitchen due to their neighboring businesses. Consult local zoning departments and ensure that the location is zoned for commercial food preparation.

Competition. A few competing cloud kitchens can be healthy to sustain the demand. Make sure that your chosen location is not yet saturated and can still accommodate your cloud kitchen.

Future growth opportunities. When choosing a location, always consider the possibilities of expanding your business. Check if the location can accommodate more space for expansion.

These factors are just some of the critical considerations when choosing the right location. Business owners must also be familiar with the market or consumer behavior and learn how to project trends and potential changes in time.

Different cloud kitchens have their own specialization. Some may mainly accommodate baked-type goods, whereas others can specialize in cooked dishes.

The projected cuisines or types of dishes that will be produced in the cloud kitchen will determine the needed equipment and facility.

However, here is a list of essential equipment that most or any type of cloud kitchen will require:

Commercial-grade cooking equipment. This includes commercial stoves, ovens, griddles, fryers, and other cooking equipment specific to your menu items that can accommodate large-scale preparations.

Refrigeration equipment. Regardless of the type of dishes you will be preparing, walk-in coolers and freezers, reach-in refrigerators, and freezers are required.

Dishwashing equipment. This includes dishwashers, three-compartment sinks , and cleaning supplies, such as brushes, cloths, soaps, and sanitizers.

Storage and shelving. This includes shelves and rooms dedicated to storing equipment, utensils, and ingredients.

Prep and cooking utensils. Cutleries, cutting boards, knives, mixing bowls, spatulas, measuring cups, and other utensils are necessary for food preparation.

POS system. A point-of-sale (POS) system for processing orders, tracking sales, and managing inventory. This component is mandatory for cloud kitchens. Unlike traditional restaurants, a POS system is the only way for customers to pay and contact your business.

Fire suppression system. This includes fire suppression tools that meet local safety codes and regulations.

HVAC system. A heating, ventilation, and air conditioning (HVAC) system that meets local regulations and provides proper air circulation.

Safety equipment. First aid kits, safety signs, and other safety equipment to ensure a safe working environment.

Other more specific equipment, tools, and machines may be essential for your cloud kitchen, depending on your target operations. Your cloud kitchen staff can also significantly benefit from visual aids, such as Kitchen Posters , that will guide them with basic food safety operations.

Basically, all equipment, machines, and tools for a cloud kitchen must be commercial-grade to accommodate large-scale productions.

This list is a basic enumeration of critical equipment and tools for a cloud kitchen. Operations can be further optimized by adopting other solutions, such as smart software.

There are several examples of cloud kitchens that are currently operating around the world. Some examples include:

Kitchen United . Kitchen United is a cloud kitchen company based in the United States with multiple locations. They provide kitchen space and services to a variety of virtual restaurant brands, including well-known chains such as Chick-fil-A and Panera Bread.

Deliveroo Editions . Deliveroo Editions is a cloud kitchen platform that operates in several countries, including the United Kingdom, Australia, and the United Arab Emirates. They provide kitchen space and support services to independent virtual brands of restaurants.

• CloudKitchens . Not to be confused with the concept of a cloud kitchen, CloudKitchens is a U.S.-based company that works internationally by renovating existing buildings and turning them into shared commercial kitchen space. The company is a cloud kitchen provider to aspiring owners. The company leases the spaces to international networks of restaurant brands.
• Karma Kitchen . Based in London, Karma Kitchen provides shared and private kitchen spaces for restaurant businesses. It helps businesses get access to their needs to run a food and beverage company. Karma Kitchen mainly provides commercial-grade equipment, kitchen porters, and even community managers.

These are just a few examples of the many cloud kitchen companies that are currently operating in the U.S. and U.K., offering a range of cuisine options and delivery services.

Cloud kitchens are not exempted from following food safety regulations. In fact, their compliance is highly concentrated in food preparation practices which are the core operations that are commonly involved in food safety issues.

Here are some key steps you can take to ensure food safety in a cloud kitchen:

Establish a HACCP food safety plan. A comprehensive food safety plan is your best defense against food safety issues, and it ensures that your business runs in compliance with the applicable regulations. Ensure that your food safety plan is based on the highest standards, such as a HACCP plan . Create control points for handling food, cleaning, storage, and transportation. Extra steps must be established for cloud kitchen's delivery services.

Train staff on food safety protocols. Training is a must, and it is the responsibility of a food safety manager to provide training to their employees. All kitchen staff must be knowledgeable about the 4 C's of food safety handling, proper hygiene, foodborne illnesses, sanitation, and food regulations. In addition, implementing a food safety culture is a part of training food staff.

Use high-quality ingredients. Food safety starts with the quality of the raw materials that you are using. Secure a supplier that can provide fresh raw ingredients in bulk while maintaining the same level of food safety as your business.

Regularly monitor temperature control. Implement monitoring procedures and logs for maintaining the correct temperatures of refrigerated storage, cooking, the environment, and delivery to prevent the unnecessary growth of pathogenic microorganisms. Logging temperature is a critical documentation process as proof of food safety compliance. You can intuitively do this task using FoodDocs' smart monitoring logs equipped with a prefilling solution.

Conduct regular health inspections . Regularly inspect your kitchen for any potential food safety hazards, such as pests or equipment malfunctions. Schedule routine maintenance and cleaning to prevent potential problems.

Implement quality control procedures.  Establish quality control procedures to ensure that food is prepared and stored correctly. Use labels and date codes to track the freshness of food and discard any expired or contaminated items.

• Partner with a reputable delivery service. This step is critical, especially for cloud kitchens. Choose a delivery service that is known for its commitment to food safety and implements the same level of compliance as your food business when it comes to food delivery.

Implement a food recall plan. Ensure that your business has a working traceability system and a recall plan. In case of food safety issues, these systems will help you minimize potential damages by easily tracking your products off the market. Get a digital Product Recall Log as part of our smart solutions in our digital Food Safety Monitoring System. 

Product recall log from FoodDocs

9. Use food safety technology. Use digital solutions, such as temperature monitoring systems and food safety apps, to help track and monitor food safety practices in the kitchen.

You can easily achieve all of the essential prerequisites to an effective food safety management system using our smart solutions at FoodDocs. Our digital HACCP plan builder can help you create a detailed food safety plan template based on your business operations in just 1 hour.

With our smart HACCP-based Food Safety Management System , you can monitor your operations and maintain compliance. Get access to our monitoring logs, a traceability system, smart notifications, a production management system, and management tools, such as a real-time dashboard. Using our digital food safety system at FoodDocs, you can focus on running your cloud kitchen while maintaining compliance in the most efficient way.

Like any other food business, food safety is a critical element for running a cloud kitchen. The only difference is that food safety for cloud kitchens focuses on back-of-the-house operations and delivery services . This means that monitoring operations are more concentrated on food preparation, cooking, storage, and delivery, without the need to monitor food service.

Everything that any cloud kitchen needs for food safety management is covered by FoodDocs' smart solutions. When starting a cloud kitchen, your first requirement for food safety compliance is to create a comprehensive food safety plan.

With FoodDocs digital HACCP plan builder , you can automatically get a comprehensive food safety plan based on the gold standard of management systems. Using artificial intelligence, our system can automatically generate a comprehensive HACCP plan template complete with all the essential components of a HACCP plan.

• 10+ templates for Prerequisite programs
• 15+ templates for Standard operating procedures
• Basic flowchart of your operations
• Comprehensive hazard analysis based on a hazard analysis matrix
• Critical control points with established critical limits
• Corrective action plan
• Monitoring procedures
• Verification procedures
• Recordkeeping procedures

Digital HACCP plan template from FoodDocs

All components of your generated digital HACCP plan are completely customizable. So, you can apply any revisions or suggestions from inspectors or your team members easily. Complete your food safety compliance requirements in an average of 1 hour with our smart solution.

Once you achieve compliance, the next step is to maintain it with consistent monitoring. Through our HACCP-based digital Food Safety Management System , you can get the essential tools to intuitively and efficiently monitor your everyday food safety operations.

Using the information that you will provide to our system, you can automatically get a comprehensive digital Food Safety Management System that is based on your operations. Some of the most useful tools and benefits that every cloud kitchen can get from our system include the following:

• Receiving chilled goods log

Receiving chilled goods log from FoodDocs

• Cooking temperature log
• Employee hygiene checklist
• Fridge temperature log

Fridge temperature log from FoodDocs

All generated logs are equipped with detailed instructions to help food handlers perform the operations correctly and a prefilling solution . The logs can be automatically filled based on previously inserted data, saving your employee's time and increasing data accuracy. All that is left to do is to verify the information.

• Our system is compatible with the most technologically advanced IoT sensors and barcode readers. Employees can integrate the sensors with our monitoring logs which will automatically send temperature readings to our system.
• Use our mobile application that is compatible with any device and get tools such as a smart notification system . Your employees will receive alerts, reminding them of important tasks that need to be done. Access your monitoring information anytime and anywhere.
• Our system also features a traceability system . This feature can be used to track the movement of your food ingredients throughout the production system, as well as their shelf-life. Using our traceability system, you can ensure that every ingredient you use is safe and of good quality.

Product traceability system from FoodDocs

• You can also get a live production management solution from our smart app. This feature can help you compute production quantity in a day based on your schedules. Our production management solution is especially useful for cloud kitchens whose orders vary in size depending on demand. Ensure that all ingredient and recipe calculations are always correct and accurate.

In addition to food safety operation solutions, our digital Food Safety Management System Software can also help managers supervise their operations remotely.

Food Safety System Set Up by FoodDocs

• Get a real-time overview of your food safety operations across all of your cloud kitchen branches with our real-time dashboard. Save at least 20% of your time by managing every branch on-site and immediately identifying areas that need more attention.
• Store and manage all digital documents in one cloud storage space dedicated to your food business.

Our digital platform is the best food safety solution for cloud kitchens. This type of food business fully depends on online solutions. Our system can be integrated with other digital services and can work seamlessly to streamline cloud kitchen operations.

All digital documents generated by our software can be further customized and improved according to your needs. Ensure the success of your cloud kitchen operations by maintaining food safety compliance in every dish that you send out from your kitchen.

Experience our services for free and establish your food safety management system in just a few minutes using our free 14-day trial now.

Here are some of the most common questions asked about cloud kitchens:

What is a cloud kitchen, and how does it work?

A cloud kitchen is a food business that uses a commercially shared kitchen space for different brands that serve customers through delivery-only modes. This type of establishment does not have a physical storefront where customers can dine in. Consumers will typically place an order through an online order app, and the food will be prepared and delivered according to the order.

What are the benefits of a cloud kitchen for restaurants?

Cloud kitchens offer an avenue for restaurants to expand their business to farther locations without having to spend too much for a big facility. The concept provides an opportunity for restaurant owners to reach more customers, explore new markets, and increase their production capacity.

How much does it cost to start a cloud kitchen?

Starting a cloud kitchen is estimated to cost an average minimum of $13,000. This estimate can go up or down depending on the scale of the kitchen, the intended operations and kitchen equipment, the location, and other business factors.

How do I choose the right location for my cloud kitchen?

Choosing the prime location is everything for a cloud kitchen. Choose a densely populated area where people are accustomed to ordering food rather than dining in for service. Also, consider the location's proximity to nearby suppliers and accessibility to logistics operators.

How do I market my cloud kitchen to customers?

Cloud kitchens work entirely on online platforms. Select marketing modes that will help boost your online presence for brand recognition. Make sure that your website has all of the necessary information for your customers and optimize data gathering information from your partner companies.

How do I ensure food safety in a cloud kitchen?

The best way to ensure food safety in a cloud kitchen is to implement a digital food safety management system . Since cloud kitchens run entirely on online ordering, a digital food safety system will also help streamline your monitoring processes, making them more efficient and secure.

What types of restaurant brands are best suited for cloud kitchens?

Typically, restaurant brands that go well with food deliveries opt for opening cloud kitchens. Unlike a traditional kitchen and restaurant, cloud kitchens cannot add the appeal of dining in a good setting. As such, restaurant brands with products that can withstand delivery are more suitable for cloud kitchen operations.

How do I manage operations and logistics in a cloud kitchen?

Most cloud kitchens partner with third-party delivery services or food aggregators to handle their food deliveries. This solution makes it easier to focus on preparing and securing the dishes for delivery.

What is a cloud kitchen concept?

The cloud kitchen concept is a type of food business that uses a shared commercial-grade kitchen for multiple restaurant brands with no storefront to prepare delivery-only menu items.

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Cloud Kitchen Business Model | How Do Cloud Kitchens Make Money?

The on-demand economy has disrupted traditional businesses across industries, and the food business is no different. With customers wanting their food faster and more conveniently, restaurants have had to scramble to keep up. Some have turned to technology, others to delivery services, and still, others have gotten creative with their menu offerings.

But there’s one solution that’s become increasingly popular in recent years, particularly in urban areas: the cloud kitchen – a restaurant that exists only for delivery, with no dine-in option.

Thanks to the Covid pandemic, the food and beverage industry have been forced to re-evaluate the way it does business. And one of the most popular trends to emerge has been the cloud kitchen.

So, what exactly are they? How do they work? And perhaps most importantly – how do they make money?

What is a Cloud Kitchen?

A cloud kitchen, also referred to as a ghost kitchen or virtual kitchen, is a fully or partially equipped commercial kitchen space in a strategic location, used by multiple food businesses to prepare their food for delivery. These kitchens are often smaller and do not have seating arrangements or dine-in facilities. Instead, it is a delivery-only restaurant where the online ordering and delivery are done via food aggregators or the restaurant’s app. 

This way, the restaurant can do away with the expensive overhead costs associated with running a dine-in establishment, such as rent, waitstaff, decorations, etc. And since they save on these costs, they can pass on the savings to the consumer in the form of lower prices and high quality.

Cloud Kitchens are becoming popular in the food sector because of their ease of establishment and operation, minimal investment, capacity to manage various brands under a single roof, and less space consumption. In fact, according to statistics, the global cloud kitchen market , valued at USD 51.96 billion in 2020, is expected to rise by 12.4 % CAGR from 2021 to 2028 and can create  a $1 trillion global opportunity by 2030.

The Idea Behind Cloud Kitchen Business Model 

The idea of delivery-only restaurant facilities isn’t new. In fact, Grubhub and Seamless were already operating 10% of their New York business from cloud kitchens as early as 2015.

However, with the COVID-19 pandemic and the resulting lockdown, people’s dining habits have changed drastically. More and more people are now opting to order in food rather than dine out.

While the dine-in business took a hit due to the pandemic, the on-demand delivery business model saw a surge in demand.

The on-demand startups like Zomato , Swiggy, and Uber Eats saw a boom in their business and accelerated their growth plans by including cloud kitchens in their portfolio.

All this accelerated the growth of dark kitchens by five years within three months in 2020 .

Today, a single company may run five different cloud kitchen brands dealing in different cuisines out of a single location.

Who Are The Customers Of Cloud Kitchen?

Cloud Kitchens targets to garner a significant share of working professionals and youth mass willing to spend on high-quality food delivered to their doorsteps. The independent cloud kitchen’s primary customers are those who prefer a single cuisine without going out of their houses and rely heavily on third-party applications for food delivery.

What Value Do Cloud Kitchens Provide To Their Customers?

Millennials and Gen Z are heavily conditioned to technology-enabled convenience. They demand more variety of quality food but are unwilling to spend time cooking it themselves or going out to eat. They also prefer not to pay the high service charges that come with dine-in restaurants.

This is where Cloud Kitchens comes in. Combined with the on-demand economy, they provide a solution that is tailored to the needs of this target audience.

• Customers get food with just a few taps.
• It’s less pricey than the dine-in alternative.
• They get a variety of cuisines to choose from.
• The process is simple and easy to follow.
• Several cloud kitchens operate 24×7.
• Customers also get hassle-free payment options such as UPI, Credit or Debit Cards, Internet banking etc.

How Do Cloud Kitchens Operate?

Cloud kitchens operate on a delivery-only basis. To deliver meals for off-premises eating, these restaurants rely on orders from their website or delivery apps like UberEats , Grubhub , Deliveroo , Zomato , Swiggy , etc.

This business strategy enables restaurants to diversify and extend their customer base while reducing the highest operating costs—rent and labour. With cheap overhead and just kitchen staff, restaurants save expenses while increasing orders.

Moreover, since customer acquisition is handled through digital channels, cloud kitchens substantially invest in technology that leverages the entire business operation. Besides technology, other significant expenditures include well-equipped kitchen equipment and labour, such as chefs and delivery personnel.

Some cloud restaurants use their delivery application to customise their service, while others partner with delivery aggregators.

There are several ways to run a cloud kitchen. It can range from adding a delivery-only brand to an existing restaurant kitchen to running a purpose-built commissary kitchen housing multiple brands. However, the primary reason for the success of the cloud kitchen business is its ability to generate revenue through various business models .

The cloud kitchens operate on the following business models:

•   Independent cloud kitchen: This is the classic cloud kitchen model. It is a restaurant with no physical presence. As the demand for online food grew, so did this concept. It consists of a single brand that prepares food in a kitchen based on online orders. Typically, such kitchens focus on a single cuisine. It is a self-sufficient business model for receiving orders and delivering packed meals.
•   Multi-brand cloud kitchen: Rebel Foods developed this business model in 2011. This cloud kitchen business model is slightly more complex and employs data intelligence to develop business strategies. It is based on an in-depth assessment of food consumption trends in a specific location. The most popular or ordered cuisines in a particular area or demographic are identified and catered to using this cloud kitchen model. Food is prepared in a shared commercial kitchen where various brands prepare and package the meals. It is a strategic and efficient model that generates profits while reducing operational costs.
• Hybrid cloud kitchen: This model is a combination of a takeaway restaurant and a cloud kitchen. It functions similarly to a cloud kitchen but has a storefront where customers can come and get their food. Here, the food delivery process can be done independently or by an aggregator food delivery app like Zomato or Swiggy. The hybrid model employs a single brand in a single kitchen. However, it also has multiple walk-in outlets that provide takeaway and delivery services for food orders.
•   Co-working cloud kitchen: In this cloud kitchen model, entrepreneurs make a living by renting out space to other cloud kitchen businesses. The kitchen space is rented out to multiple third-party brands, which acts as a co-working space and an incubator for other cloud kitchens. The entrepreneur here acts as a landlord rather than a business owner. Furthermore, the business owner is expected to provide utility services and supplies that make operating a cloud kitchen easier in a shared kitchen.
• Delivery app-owned cloud kitchen: In this business model, a delivery app company leases or buys a kitchen space and allocates it to various emerging food brands. These food delivery apps manage the orders and the delivery fleet. The delivery app company and the food brand have a symbiotic relationship in this model. Food brands use the app’s reach to gain more customers, and the app uses the food brand to provide more options to its users. For instance, this cloud kitchen model is used by food aggregator apps such as Zomato and Swiggy.
• Fully outsourced cloud kitchen:  As a novel concept, this cloud kitchen model was introduced by the food delivery aggregator Kitopi . First, most food preparation is outsourced and delivered to the kitchen. Then, the chef only adds the finishing touches. And finally, the delivery of the order is handled by Kitopi.

Key Activities Of Cloud Kitchen

The key activities of Cloud Kitchen include:

• Developing relationships with restaurants and retail stores.
• Recruiting delivery companies and suppliers. They can work full-time, part-time, or as freelancers.
• Acquiring customers and managing their orders.
• Managing the Payment and Delivery Process.
• Managing technical operations.
• Developing and updating the IT infrastructure required to run the business.
• Resolving customers’ and partners’ queries and concerns.

Key Channels

Cloud kitchens can reach the customers either directly – through their own application or website – or indirectly, through marketplaces such as Zomato, Swiggy, and Foodpanda. They can also partner with delivery companies such as Dunzo, Shadowfax, and Rapido to get orders from customers who use their platforms.

Key Partners Of Cloud Kitchen

The operating model of Cloud Kitchen focuses on two key partners —

• Enabling Partners: It includes entrepreneurs who provide commercial kitchen spaces to allow cloud kitchens to function and prepare delivery optimised menu items. The kitchen spaces may be either partially or fully equipped.
• Delivery Partners : These individuals work as partners for the cloud kitchens and help them deliver the food to their customers on time—for example, Foodpanda , Zomato, Swiggy etc.
•   Packaging Partners: Packaging partners help cloud kitchen businesses optimise their orders’ packaging.
•   Payment Processors: The Cloud Kitchens must have a payment gateway or processor. Payment gateways aid in the tracking of all consumer payments and the flawless execution of orders. Payment gateways such as UPI, Paypal, and others provide similar services to Cloud Kitchens.

Key Resources Of Cloud Kitchen

Cloud Kitchens build their operations on the following key resources:

• Human Capital: Human capital is an intangible asset of any business. It boosts productivity and, thus, increases the profits of the company. Hence, cloud kitchens investing in their employees are more likely to be productive and successful.
• Technical inputs: Technology is essential for the seamless operation of a cloud kitchen business, promoting operational efficiency. A comprehensive technology platform will seamlessly integrate the Point of Sale (POS) system, Integrated Kitchen Display System (KDS), and inventory management. As a result, it will assure operational efficiency and the smooth running of your cloud kitchen business.
• Financial resources: As the demand for online food delivery is growing, cloud kitchens are becoming popular for starting a new restaurant business. Besides, they require less financial assistance than a traditional restaurant. Hence, the investors in cloud kitchen can meet the financial needs of the cloud kitchen businesses through funding. 

How Do Cloud Kitchens Make Money?

Cloud kitchen revenue model isn’t too different from that of a restaurant. The main difference is that the former doesn’t entertain dine-in customers.

The revenue streams and costs of a cloud kitchen are often similar to a usual restaurant.

Revenue Streams of Cloud Kitchens

A cloud kitchen generates revenue much the way a traditional kitchen does. They earn from the sale of their food per order basis.

The kitchen can also earn money on a subscription basis. For instance, customers who subscribe to meals from the cloud kitchen can pay for their food at regular intervals, like weekly or monthly.

Besides this, cloud kitchens that operate independently may also charge customers certain delivery fees.

Costs Incurred by Cloud Kitchens

The typical costs for a cloud kitchen include the following:

• Rental space for setting up the kitchen: The cloud kitchen model has a cost advantage over other restaurants. The kitchen space can be cheaper and does not need to be in a prime location commanding premium rentals.
• Cost of equipment and packaging
• Ingredient costs.
• Staff costs include salaries of chefs, delivery personnel, and support staff.
• Marketing: Brand promotion and marketing costs to ensure customer brand recall.
• Technology that streamlines operations and automates business processes.
• POS and Inventory management that focuses on reducing waste and handles lost orders.

For example, let’s see the cost breakdown for setting up a cloud kitchen in the US.

Bottom-Line?

Cloud kitchens are disrupting the food industry as food lovers are increasingly shifting towards ordering their food online and getting it delivered to their doorsteps. While restaurants will always have a stronghold due to their dine-in experience, cloud kitchens are still emerging as strong competitors due to their convenience and variety.

Moreover, cloud kitchens are here to stay, with social distancing becoming the new normal after the COVID-19 pandemic. They have already started capturing the market and piqued investors’ interest.

Go On, Tell Us What You Think!

Did we miss something? Come on! Tell us what you think about our article on  cloud kitchen business model  in the comments section.

A lawyer and an avid reader with a keen interest in company laws. Anwesha has good experience of writing in the legal and startup industries for well over 10 companies. In her free time, you can find her reading fiction and stargazing.

Related Posts:

6 Most Popular Cloud Kitchen Business Models (& the Only Two We’re Betting On to Thrive)

• Food Delivery , Restaurant Management

Here’s the thing — this was supposed to turn into a be-all-end-all post on the topic of cloud kitchen business models.

At least, that was the plan until I hit the research equivalent of a brick wall.

The fact of the matter is that cloud kitchen business models are still evolving. They are a smörgåsbord of moving parts, pivots, and changes.

I counted anywhere between 20 and 40 different iterations of the concept . And what’s making the situation more muddled is the fact that some operators are transitioning between concepts (and sometimes back). 

I found ghost kitchens that are:

• Brand-owned, with self-delivery, no partnerships, and takeaway… that turn into…
• Brand-owned, with self-delivery, aggregator partnerships and no takeaway… that morph into a…
• Shared kitchen with a mix of self-delivery and aggregator partnerships.

And on and on it goes. This adds up, trust me.

Just so you know, you might see different names pop up. Don’t let them confuse you. Cloud kitchen, dark kitchen and ghost kitchen are synonyms. They all mean the same thing. It’s a food production unit built exclusively for, and optimised for, food delivery. There is no dine-in area.

So… why are there so many different types of ghost kitchens?

Well, blame the ‘amazonification’ of consumer experience and the concept of last-mile delivery.

Consumers want everything right this minute, which gave rise to aggregator and delivery platforms. It also pushed restaurants to invest in their own delivery fleets. Couple that with the fact that fast delivery can only be profitable if it’s also a short run delivery (a couple of kilometres, at most), and you get a lot of business model experimentation.

Restaurants that add delivery to their offer; restaurants that open pop-up stores to be able to service a particular area; aggregators that break into the restaurant business grow profits…

It’s a Wild West situation.

Oh, and did I mention the global pandemic? It really accelerated the rise of ghost kitchens.

This begs the question: are ghost kitchens a sustainable business model?

The answer is less straightforward.

While this obviously can’t be the ‘ultimate guide’ it still packs everything there is to know about the cloud kitchen game, to date.

You’ll walk away with an in-depth understanding of:

• 6 main cloud kitchen models
• How they work
• How difficult to scale they are, and
• How profitable you can expect each one to be.

And we’ll start with the OG of cloud kitchens… the pureblood cloud kitchen.

Recommended Reading : How Will Off-premise Dining Evolve in Europe?

Cloud Kitchen Model #1 – Brand-Owned Cloud Kitchen

This is as clean-cut as cloud-kitchen models get.

One location. One brand. One kitchen. A brand-owned single-cuisine ghost kitchen is a delivery-only operation, with no takeaway and no dine-in.

Typical setup : The kitchen is usually located in a lower-end rent area but not too far from densely populated spots.

It’s relatively small and streamlined and employs a skeleton crew. Orders and deliveries are handled by several different aggregators to maximise exposure. Sometimes, the kitchen parallelly operates self-delivery, especially if it’s a well-known brand.

Profit potential : ★★★★

Upfront investment — low.  This is true if we’re talking about a new entrant that’s choosing between a dine-in restaurant and a cloud kitchen. A cloud kitchen is always a less substantial investment. However, an owner of a dine-in restaurant is often better off running a joint dine-in/cloud kitchen operation, at least until they’ve tested out their concept and the demand.

Business scaling — doable with effort. The best scaling tactic requires a slight tweak in the model — expanding the original operation and creating a centralised kitchen. The brand can then cover more ground through pop-up locations while keeping costs under control.

Recommended Reading : Cloud Kitchen Management Software: 17 Systems That Improve Efficiency And Profitability

Cloud Kitchen Model #2 – Dine-in With a Separate In-Location Delivery Production Line

In this cloud kitchen model, an existing dine-in restaurant creates a side-hustle dedicated to delivery/takeout. Basically, the restaurant takes its menu hits and tweaks them for delivery.

Despite appearances, most of these cloud kitchens are not thrown up ad hoc — there’s a system behind how this is done.

Typical setup : The kitchen is located in a high-rent, frequented area. The delivery side of the operation is almost exclusively geared towards creating an additional revenue stream. Sometimes, it’s a measure to bridge a cash flow problem or a way to test out new menu ideas and concepts.

Dine-in and delivery production lines are separated, with similar (but different) menus. The restaurant partners with a few aggregators to handle orders and delivery (but can also run its own delivery).

Profit potential : ★★★

Upfront investment — low.  In a pinch, most existing restaurants can pull this off to increase volumes and stave off layoffs and financial ruin. This is why it’s so popular as a stop-gap measure during pandemic-related lockdowns.

The investment goes up when the operator focuses on growing the delivery side — new processes, extra employees, robust software.

Business scaling — very difficult. Scaling this iteration of a ghost kitchen is a pain, mainly because it’s not a true cloud kitchen. When scaling, this model usually morphs into a hub-and-spoke or a shared kitchen model because opening a dine-in storefront at new locations wouldn’t make financial sense.

Recommended Reading : 24 Cost-Reducing Tips for Cloud Kitchen Operators

Ghost Kitchen Model #3 – A Dine-In Brand Operating from One (or More) Shared Kitchen Locations

In this particular model, the business has a dine-in operation set up already, but the cloud kitchen aspect is physically removed from it and ran from a shared kitchen space.

Typical setup : A well-known dine-in restaurant rents out kitchen space in a low-rent area to separate operations and expand reach.

In most cases, this cloud kitchen only operates during peak times (weekends, holidays, evenings). The staff rotates between the restaurant and the cloud kitchen, and orders and delivery are handled by several aggregators. The semi-prepared items are sometimes delivered to the restaurant in a bid to service a larger area.

Upfront investment — medium.  You’ll need a bit more money at the start to get this ghost kitchen model of the ground. That’s because you’ll be renting an additional space (likely a shared kitchen operation that’s already equipped). If the operation grows, you’ll also need to hire extra staff.

Business scaling — doable with effort but depends on how you set things up, and which direction you decide to take.

Running operations from several shared kitchens can morph into an unscalable logistical nightmare. However, if you expand your operations in one location, and then simply open up pop up storefronts to grow your reach, then scaling becomes easier.

Recommended Reading : Cloud Kitchen Best Practices (& What Pitfalls to Avoid)

Cloud Kitchen Model #4 – Hub & Spoke

A hub and spoke cloud kitchen model has several variants — single brand, multi-brand, shared kitchen, and so on.

The point of each one of them is to have a centralised production unit where most of the items are premade, and then pop-up locations that facilitate reach (and where items are finalised).

Typical setup : The centralised kitchen is located in a low-rent area (owned or rental). It’s the production hub where most items are prepared in advance and sent off for finishing touches to smaller pop-up locations (strategically placed to cover more ground under the last-mile delivery concept).

Profit potential : ★★★★★

Upfront investment — high.  Diving straight into a hub and spoke model is expensive because of the high volumes involved. In most cases, the centralised kitchen space will be business-owned or rented (so not a shared kitchen).

Additionally, labour costs tend to go up with every pop-up location, and you need time to recruit and train employees so that means extra cost for at least a couple of months before you deliver your first order.

Business scaling — easy. A smooth centralised operation with low-cost pop-ups lends itself to scaling. It’s just a matter of finding 8 square meters in a residential area and hiring one additional person to run that specific operation.

Keep Track Of Internal Orders

Order, Deliver & Receive From Central Kitchen To Stores. Your inventories are updated automatically on both ends.

Cloud Kitchen Model #5 – Multiple Virtual Brands In a Shared or Business-Owned Kitchen

This is a slightly more elaborate setup where one business runs several different brands (generally different types of cuisines) in an owned or shared kitchen space. There’s no dine-in option and no takeout — it’s exclusively a delivery operation.

Typical setup : If there are no pop-up locations injected into this model, then the kitchen is in a prime real-estate area that’s densely populated.

It’s usually a large kitchen (but it doesn’t have to be) with several production lines where different brand items are prepared.

These brands are closely connected (sushi, poke, and chirashi, for example), which means that they can be prepped by one team. This also means that ingredients are bought at volume to keep the price down.

Ordering and delivery are mostly handled through aggregator partnerships.

Upfront investment — low/medium.  This model is more expensive to set up than a cloud kitchen serving just one cuisine. For one, you’ll likely need a larger space, either owned or rented (in a relatively high-rent area). In addition to that, you might need some expensive equipment, depending on your volumes and cuisines.

However, this type of cloud kitchen is not as expensive as the hub and spoke cloud kitchen model because we’re still talking just one location.

Business scaling — easy/doable. Replicating a winning multi-brand cloud kitchen in a different area/city should be relatively easy, as long as what’s on offer resonates with the population.

Processes, know-how, and software solutions can be transferred, which helps to keep the costs on par or lower than the original location.

It will, however, depend on where you’re expanding. Before scaling (and especially before trying to break into a new market), it’s important to do a thorough deep-dive into the demographics and ordering/eating habits.

Recommended Reading : What Is The Host Kitchen Model And How To Get In On It?

Cloud Kitchen Model #6 – Shell Kitchen /w Outsourced Food Prep/Delivery/Support

This one is… slightly complicated. Imagine a cloud kitchen that only does final touches. It can offer one cuisine (most common), or several of them — but the offer is often really slim and uninspired.

Overheads are kept to a minimum, and the biggest concern is how to get maximum volumes with minimal costs.

Typical setup : What you have here is, basically, a pop-up location that’s not served by a dedicated centralised kitchen.

This pop-up orders semi-prepared dishes from a shared kitchen (or buys them from a grocery store), doubles the asking price, and partners with aggregators for orders and delivery.

The partner takes care of the orders, delivery, and food preparation. The operator only owns a great central location that serves as a base of operations for the final leg of delivery.

Profit potential : ★★

Upfront investment — very low.  This is an extremely low-cost model, especially if we’re talking about a partnership with an aggregator.

However, places like this have a difficult time capturing their slice of the market (and holding on to it). More often than not, the menu items are neither innovative nor high-quality.

Business scaling — easy. Scaling this model is easy if you can find a centrally-located place without too much competition (processes, know-how, and software solutions are easily transferable).

Okay, now, let’s talk about why you are here, the reason you have scrolled all the way down to the bottom of the page, the answer to the question:

which type of cloud kitchen has a sustainable business model. 

Here we go:

The Two Ghost Kitchen Models That Will Come Out on Top

Thanks to their current boom, virtual restaurants are expected to grow to a US 1 trillion industry by 2030 .

There’s no doubt that the disparate models listed in this article are contributing to that growth.

However, not all of them will survive to celebrate that whopping 1 trillion milestone. If you ask me, most will flop long before that as two cloud kitchen models become predominant.

Those two models are: 

…(imagine a drumroll right about now)…

• The business-owned hub and spoke multi-brand cloud kitchen, and
• The multi-brand shared kitchen model.

Why? Well, I’ve identified two main reasons:

• Both models are easily scalable (after a heftier initial investment). They deal in large volumes, which means that they can keep their food cost down. And they don’t put their eggs in one basket (multiple brands and cuisines).
• Innovation, experimentation, and pivoting potential are all built into these models. They can test out various brands without committing to anything (and without spending too much money in the process). What works, stays. What doesn’t, goes.

But hey… as I said, this is an educated guess.

What I know for sure is that whatever ghost kitchen model comes out on top, it will get there through business optimisation and cost control , because that is exactly what successful cloud kitchen operators are doing right now.

And that’s where Apicbase comes in.

Let Data Drive Your Ghost Kitchen Network

Tell us about your project and we’ll show you how to get more control over costs and processes .

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• What Is Cloud Kitchen...

What Is Cloud Kitchen Business Model? List Of 5 Cloud Kitchen Business Strategies

Cloud Kitchen is a disruptive business model in the hospitality industry, which has opened up new frontiers of the food business worldwide. There is a reason why Cloud Kitchen Stocks are in demand, and venture capitalists are making a beeline to invest in them.

A Cloud Kitchen is a restaurant kitchen that only serves and delivers online or call-in orders, with no dine-in facility.

Hence, imagine a large hall-type complex, where food is being prepared and shipped, but no customer can sit there and eat. Cloud Kitchen Business is also known as satellite kitchens or dark kitchens. Ghost kitchens and virtual restaurants are also reasonably popular terms for this concept.

Why is Cloud Kitchen Business Becoming Popular?

As per a 2018 survey, around 67% of India’s restaurant owners wish to open a Cloud Kitchen as a new revenue source. The popularity of Cloud Kitchen has soared immensely in the last few years, mainly because of low infrastructure costs and high margins. Since orders are only accepted via online medium, and in some cases via calls, there are no additional overheads to maintain dining space, employ serving staff, and pay steep rentals.

All you need is a kitchen and expert cooks to make food. In most cases, delivery is handled by a third party, thereby saving a tremendous amount of money for the restaurant owners. Even if the kitchen owner decides to deliver the orders on their own-self, the cost is much less than paying rent for the dining space and employing staff members to serve the food.

5 Key Strategies for Building a Cloud Kitchen Business Model

The Cloud Kitchen business model can be explained in just three steps:

• Orders come in via online channels, aggregators, or direct call
• Food is prepared and packed
• Order is delivered by the 3rd party aggregators or the kitchen themselves.

It’s as simple as this. However, several strategies and Cloud Kitchen business models exist to execute these three steps of delivering food to the end-users. These are:

1. The Stand-Alone Cloud Kitchen Business Model: Single Kitchen, Single Brand, and No Storefront

In this strategy, the kitchen is an independent, standalone entity with no association with any 3rd party aggregators or any association with brands. They own and nurture one single brand of the kitchen, and accept orders directly from their customers. This is considered as the original Cloud Kitchen concept, from where this while business model started.

Typically, a standalone and independent Cloud kitchen has 500-600 feet of the kitchen area. Advantages being full control over your Cloud Kitchen Marketing, customer database, and pricing. Scalability is a significant disadvantage, and so is limited cuisine and limited customers.

2. Multi-Brand Cloud Kitchen Business Model with Multiple Outlets

In this strategy, you open several multiple outlets across multiple Cloud Kitchen Locations, and every outlet will develop its multiple brands and, thus, multiple cuisines. This is an advanced and more scalable Cloud Kitchen version, wherein the outlets and brands are created based on data and analytics.

Typically, such a muti-brand, the single kitchen will analyze the user demographics, find out the demands, the feasibility of hyperlocal deliveries, and then based on these data points, open up outlets and multiple brands of cuisines. They usually focus on developing cuisine brands that are not available in that location and maximize their orders.

Such single kitchens will serve a 5-6 km radius for quick delivery, and every brand originating from the single kitchen will focus on one single cuisine.

For example, suppose such a single kitchen outlet comes up in the Lajpat Nagar area in New Delhi. In that case, they can develop multiple brands of cuisines focusing on the locals’ tastes and preferences. One brand can be, say Non-Veg, with a particular focus on Biryani. The other brand from the same outlet can be Chinese cuisines, with a specific focus on noodles and Manchurian varieties. Delivery can be self-fulfilled, or partnership with 3rd party aggregators.

Fasso’s is a good example of this Cloud kitchen business model.

3. Aggregator-Owned, Multi-Brand, Rented Co-Working Cloud Kitchens

In this Cloud Kitchen Business Plan, a 3rd party aggregator will own a shell kitchen with bare minimum facilities such as gas pipes, ventilation, and drainage. Now, this 3rd party aggregator will rent out this space to multiple kitchens, having brands of cuisines. The kitchen owner needs to bring staff, raw materials, and cook the food. Rest everything will be handled by the 3rd party aggregator: menu selection, marketing, delivery, and payments.

Such co-working kitchens are becoming popular because the Cloud kitchen is shared; hence rents are low, and besides cooking food and bringing in raw materials, the kitchen owners need not do any other business activity.

Swiggy is a good example of this model. The order comes to the multi-brand Cloud kitchen via Swiggy, the kitchen owner prepares the food, and Swiggy handles the delivery and payment.

4. Hybrid Model: Aggregator-Owned, Multi-Brand, Rented Co-Working Cloud Kitchens with Storefronts

In this hybrid model, everything is the same as Swiggy’s Aggregator-Owned, Multi-Brand, Rented Co-Working Kitchens model, but with a storefront. Zomato is a pioneer in executing this model since they already had partnerships with restaurants with dine-in facilities. All they did was induce a co-working Cloud Kitchen Model with multiple brands and cuisines, and it scaled up.

In both the hybrid and non-hybrid models, the major disadvantage for the kitchen owners is that they don’t get to access the customer database, and they can’t control the pricing.

5. Outsourced & Managed Cloud Kitchen Business Model

This is a relatively new Cloud kitchen business concept, wherein the entire process of taking orders, preparing the food and delivery is outsourced to a third party. US-based Kitopi has pioneered this new Cloud kitchen business model and scaling it fast.

This is how it works –

A customer orders a food item from a restaurant called Tasty Foods. This order can come via Tasty Food’s website, social media, or Kitopi’s call center. Kitopi has already bought the raw materials and has a basic kitchen facility. Kitopi pre-prepares the food and sends it to the kitchen of Tasty Foods. Chefs at Tasty Foods give the final touches and informs Kitopi. Kitopi delivery partners pick up the food and deliver it.

It can be described as a hybrid model between traditional restaurant business, Cloud Kitchen Concept, and outsourced food operations.

The very idea of Cloud Kitchen Business is mammoth, and there exist several layers and more layers within each strategy of building a new Cloud Kitchen. You can consult with an expert in Cloud Kitchen Business right now, at MSMEx and take your plans for a Cloud Kitchen to the next level. MSMEx provides a startup learning platform for MSMEs and small businesses to connect and consult with business strategy and growth experts.

Related Read About

• What is APEDA Certificate? How to Register with APEDA & Start Food Exports?
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Cloud Kitchen Project Proposal

Cloud kitchen project proposal presentation, free google slides theme and powerpoint template.

Although technology is constantly advancing and new inventions are being created every day, a kitchen literally placed in a cloud is still only a fantasy. Cloud kitchens are locations where restaurants or food chains can have their facilities set up for their workers to cook orders placed online (“cloud") and prepare them for delivery. It's still a very novel concept, which you can explore with this project proposal template. Tell your new ideas for improving this practice through black and white slides, which will make your content the most important thing.

Features of this template

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• 25 different slides to impress your audience
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• Includes 500+ icons and Flaticon’s extension for customizing your slides
• Designed to be used in Google Slides and Microsoft PowerPoint
• 16:9 widescreen format suitable for all types of screens
• Includes information about fonts, colors, and credits of the free resources used

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Cloud Kitchen Financial Model Excel Template

• Restaurant , Financial Excel Model , Financial Excel Template , Browse by Categories , Browse by Industry , Restaurant Financial Model , financial modeling , financial forecasting modeling , Financial model excel template

In the rapidly evolving food industry landscape, the restaurant business, specifically cloud kitchens, has emerged as a game-changing concept, reshaping how food is prepared, delivered, and consumed. As this trend gains momentum, it becomes crucial for entrepreneurs and restaurateurs to understand the financial aspects associated with cloud kitchens. This guide introduces you to the Cloud Kitchen Financial Model Excel Template– an indispensable tool for planning, projecting, and optimizing the financial performance of your cloud kitchen venture.

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• This Product: Cloud Kitchen Financial Model Excel Template - $ 150
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• Restaurant Business Plan Template - $ 180

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• Reviews (4)

Table of Contents

A cloud kitchen, a virtual or ghost kitchen, is a concept gaining rapid traction in the restaurant industry. Unlike traditional restaurants, cloud kitchens focus solely on food preparation and delivery, eliminating the need for dine-in customers and prime physical locations. Operating solely through online platforms and mobile apps, cloud kitchens serve diverse customers seeking convenience and quality. In this  Cloud Kitchen Financial Model Excel Template, the importance of financial forecasting cannot be overstated for several reasons.

Accurate financial forecasting is the cornerstone of success for restaurant owners venturing into cloud kitchens. A well-structured forecast involves meticulously analyzing various factors, including startup costs, food products, operational expenses, delivery services, and overhead costs. Forecasting helps business owners estimate their monthly revenue, anticipate food costs, project profit margins, and even conduct break-even analyses to ascertain the minimum number of orders required to cover expenses.

Understanding the Cloud Kitchen Financial Projection Template

A successful cloud kitchen operation hinges on meticulous financial planning and forecasting. The Cloud Kitchen Financial Projection Template is a customizable Excel spreadsheet designed to provide you with a comprehensive overview of your business’s financial health. From estimating operating expenses to projecting revenue streams, this template empowers you to make informed decisions that drive growth and profitability.

Main sheets of the cloud kitchen financial model

Cloud kitchen general assumptions sheet.

Every financial projection is built on a foundation of assumptions. The Cloud Kitchen General Assumptions Sheet is where you outline the key variables that influence your business’s financial outlook for the Forecast period of 5 years. Before delving into revenue projections, it’s essential to identify and understand the various operating expenses associated with running a cloud kitchen. Operating costs/operating expenses include rent, utilities, maintenance and payroll of kitchen staff, CEO, CFO etc. It also contains revenue assumptions, no of orders, growth rate and commission to the delivery apps.

Revenue analysis

In this sheet, the financial forecast of revenue and cost of services is done. You can see your revenue from online delivery from different platforms like uber eat etc.

Financial statements and Projections

Peek into the future with calculated projections:

Income Statement or Profit and Loss statement

A comprehensive breakdown of earnings, expenditures, and gains provides valuable insights into how your business functions.

Cash Flow Statement

Anticipate forthcoming cash inflows and outflows with this projection. Visualize expected monetary streams, guaranteeing sufficient liquidity to meet operational necessities and uphold positive cash reserves.

Balance Sheet

Evaluate your enterprise’s fiscal stance, taking into account assets, liabilities, and equity.

Financial analysis

Break-even analysis.

Identify the point at which your restaurant covers all expenses and commences generating profits through the breakeven analysis sheet.

Financial Ratios

Quantify your establishment’s profitability via gross profit, net profit, and revenue growth indicators.

Project Evaluation – Discounted Cash Flow (DCF) Model

The DCF Model is used to calculate the valuation of the company. A technique for evaluating the current value of future cash streams, aiding in making informed investment choices. 

Sensitivity Analysis

Measure the influence of alterations in revenue and costs on your financial predictions.

Dashboard sheet

A visual depiction of your financial performance, offering an easily understandable overview.

Unlocking Your Cloud Kitchen’s Potential: Take Action Now!

Are you ready to take your cloud kitchen venture to new heights? With the Cloud Kitchen Financial Model Excel Template from Oak Business Consultant, you’re equipped with a powerful resource that guides your financial planning and decision-making. Invest in your success today!

Explore the Cloud Kitchen Financial Model Excel Template from Oak Business Consultant and unleash the full potential of your cloud kitchen venture!

In conclusion, mastering the financial aspects of your cloud kitchen is pivotal for sustained growth and profitability. The Cloud Kitchen Financial Model Excel Template empowers you to navigate this landscape confidently, ensuring your business remains on a path to success.

Exploring a Restaurant Industry Case Study, we offer a comprehensive insight into our methodology, the hurdles we faced, and the eventual triumph of the project. This presentation reveals our operational tactics and underscores our skill in surmounting obstacles, ensuring the project’s triumphant completion. To delve deeper into the details, refer to our complete Restaurant Management System – an all-in-one solution case study .

Testimonial

Customer input serves as the guiding force for our enhancements, illuminating the route toward a more personalized and remarkable experience. It energizes our dedication to perpetual improvement and the contentment of our customers. An example of such feedback is provided in the testimonial below.

Walkthrough Video Of Cloud Kitchen Excel Financial Model

The following video will give you an overview of different components of the financial model and how it works.

4 reviews for Cloud Kitchen Financial Model Excel Template

Jeffrey Nelson – August 27, 2023

This template has revolutionized how I manage my cloud kitchen’s finances. It’s a game-changer in the industry

Jason Mitchell – September 3, 2023

This template is worth every penny! It simplifies complex financial data and enhances the profitability of my cloud kitchen.

Andrew Turner – September 28, 2023

Thanks Oak business consultant for this Template, I have a clearer vision of my business’s financial future.

Eric Collins – November 10, 2023

Using this Cloud Kitchen Financial Model Excel Template has made financial planning for my cloud kitchen startup an easy task.

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Pitch deck faqs.

Once your order is finalized, you can access a download link for your files directly from your dashboard.

To retrieve your document, simply proceed to your dashboard and download the provided PDF document.

Yes, you will need to register for a complimentary Canva account or log in to your existing Canva account to engage with the template.

Open the PDF you downloaded and select the highlighted LINK (mentioned on the last page) within it. This link will redirect you to your specific Canva template.

Absolutely! Within Canva, you are free to adjust colors, fonts, images, and other elements to ensure the design matches your branding specifications.

After you have finished customizing your design, you can download it from Canva and showcase it on your preferred social media platform.

Yes, Indeed! Our Team has developed more than +1000 Financial Models on different industries and sectors that have closed $100M in deals and investment for companies.

Check out our Financial Model Library and have more 1000+ Financial models available here . 

Also check out our Customize Financial Model services plans here .

Yes, Indeed! Our Team has developed more than +500 Business Plan on different industries and sectors that have closed $100M in deals and investment for companies.

Check out our Business Plan Templates library more +500 Business Plan available here.

Also check out our Customize Business Plan services packages here .

Financial model faqs

An Oak Business Consultants Provides Various Financial Model Templates; each industry model has unique revenue and input assumptions based on the industry nature and operation requirement. We have dug into almost every industry and have built 100+ models for every specific niche market.

For Example; a website has a general base model for e-commerce business and several other businesses that come under the E-commerce industry like Online Clothing Business and Online Toy Store, etc.

The pre-built financial models are made to help an entrepreneur, by giving them financial projections for their business. These models provide a prebuilt detail and structure to those who have a similar business revenue model as already available on the website. However, if you have a business model which is unique and have several different revenue streams. Therefore, you need Buy Customization Plans financial model services where you can avail of modeling services as per your business nature and operation requirements. 

All pre-built models are Comprehensive and dynamic, designed by expert professionals by considering all the elements any business requires while computing the financial feasibility of the business. The financial model template will provide the assistance to compute the startup summary, detailed monthly and yearly profit and loss statement, balance sheet, cash flow Analysis, and Break-Even Output summary. The template also has project evaluation reports and diagnostic sheets which will allow you to determine the company’s performance in a specified period of time. Moreover, a visual representation of these reports is compiled on a dashboard to make a convenient report overview for the user.

The models will be in Microsoft Excel file format, and they are immediately available for download after making the purchase. A model can redownload at any time in the future from the same account.

The optimal way to use the model is to familiarize yourself first with how the model is linked and structured. There are already detailed instructions on howdetailed how to use the description mentioned under each product profile.

Moreover, then start with the input sheet with the most important assumptions, and start filling in the inputs as per your business information which is clearly labeled and formatted in a pink color cell. For Example; If your region tax rate is 25% so fill it under the tax field, which is already highlighted so then a model will automatically compute all related calculations. The same procedure will go with all operating and variable cost sections, which are mentioned in the model.

Next comes the revenue-related input; then go through the inputs around growth rate, churn rate, prices, and cost of sales, etc. These inputs will be changed from industry to industry; however, the basic structure is the same.

So far, you’ll get basic forecast reports, and now it comes down to looking at the Summary and Key Reports sheet(s) to see if the estimation makes logic: net income, gross margin and net cash flow, etc. Refine and iterates the inputs until you get a final result that makes sense for your business and your industry.

The Financial models are in xls. File format. We would recommend to use Excel or Google Sheets to develop and edit financial models. In practice, We use Excel to build and edit models and Google Sheets to share with clients. Because Excel is usually a faster software for building and designing with so many features, however, Google Sheets can make it convenient for sharing models with the user.

Our models can be used in both Excel and Google Sheets interchangeably; simply upload the Microsoft Excel model template into Google Sheets, and everything will be ready to go.

Undoubtedly Yes! All formulas’ cells and sheets are completely editable and open. Therefore, you can edit anything as per your requirement. But, you must need to consider the cell linkage first before making any change.

How to Edit the Mode? All peach Areas are your INPUT CELLS. Please fill the PEACH AREA as per your Business situation. All WHITE and COLORED CELLS are CALCULATED and LINKED CELLS.

The Model is easy to use, dynamic and Transparent. We did not use complex formulas to build the Pre-built Financial Model or Financial Template.

Yes, We provide Half an Hour of free consultancy. We help you to explain

• The flow of Pre- Built Financial Model
• Explain Financial Terminology
• Explain How the Pre-built Financial Model work.

You can fix a meeting time with our Expert Financial Consultant and avail yourself of this opportunity to have one to one call with him/her.

Business Plan faqs

Oak Business Consultant can easily accommodate any industry and already has 100+ Pre Built Business Plan samples that help you along the way. Whether you’re a small or mid-sized business, freelancer, or literally any industry sector from tech to real estate to salon and restaurant. We do extensive research before writing a business plan so that each business plan is quite different from another according to its business nature and operation requirements.

At Oak Business Consultant, we ensure that each and every business plan is customized for every industry. Such as;

• Real Estate  
• Education ,
• Entertainment etc.

Our team of experienced consultants and business analysts does not only ensures high-quality templates but also provides business consulting services to enhance your idea. However, these Pre Built Business Plan Templates are general. You will require our customized plan services and if your business idea is unique and generates revenue from various different streams.

Apart from the general pre-built business plan template, we provide three kinds of business plan customized services and Each plan package offers a variety of services based on its price.  

• Comprehensive

For Example in Basic Plan, a 10 to 15 pages business plan with a three-year financial model, completely customized according to your business nature and idea. However, in the Comprehensive package, the packages will be based on 30 to 35 pages with 5 Years of financial analysis.

We have several business planning packages. Each package is developed keeping in mind the scale of the business industry and the purpose of the business plan. We provide extremely competitive and affordable pricing for business plans.

If you need help with choosing the right package please feel free to reach one of our consultants. We are available here to support your queries.

https://oakbusinessconsultant.com/contact-us/

The average venture capital company receives several business plans every day and they only invest in a handful of 1%. You need such a comprehensive and deal proven business plan to capture investment attention. Oak Business Consultant Provides you a dynamic business plan which not only jotted down your ideas into a well-structured format but also provides all essential market and financial analysis which would be eye-captured information to the investor.

We work with minimal inputs. We only require the basic information in the brainstorming and developing process. The basic questionnaire involves Brand Name, a Brief Description of the company and your Idea, Target you will earn your revenue? and Why do you think people would need your products/services? and What is the range of initial investment you are looking at? And what plans for your company? These questions will ask as a starting point for your project. 

We always encourage our clients to share other information related to their future operations that might have. In case more information is required, our team will contact you.

We work in a collaborative manner via phase to phase communication approach. We acknowledge that you would know your business idea better than anyone. We bring along years of experience and industry best consultants to help you enhance your idea into a venture.

We work in a phased manner. Every interim deliverable related to the business plan will be sent to you for review. We acknowledge that you would know your business idea better than anyone So that We would encourage you to go through the drafts and give us your feedback. Our consultants will have a discussion on your review comments. On the basis of the discussion, we will modify the drafts. For every phase, we will take a maximum of two update requests of each phase into consideration. We would request you to give us a complete and specific set of feedback.

The business plan template design would be a part of the package. The draft version would be written in a normal word document; however, once a consultant is done with the content. A non-designed business plan goes into the in-house graphic team that turns the non-designed version into an aesthetically appealing template by considering the brand color theme and industry nature.

Market Research report faqs

We offer three variations: Basic, Advanced, and Comprehensive.

Basic includes a PDF report; Advanced adds Excel files; Comprehensive includes PDF, Excel, and PowerPoint.

Yes, we offer a 7-day complimentary consultation post-purchase.

Reports are for single-user only and not for commercial sharing.

Data is up-to-date as of the report’s publication.

Digital reports are delivered instantly; customized reports may vary as per the requirements.

We offer ongoing support for any post-purchase inquiries. You can contact by email [email protected] or book a meeting with https://calendly.com/oakbusinessconsultant/30min

Voices of Victory: Client Testimonials of Triumph

Services: Accounting and Bookkeeping Services

Industry: Fashion Clothing Store

It is my pleasure to recommend Oak’s bookkeeping services to anyone, as I have been using them for many years, and I believe they are genuine and really know their stuff.

Dana Todd Founder & CEO

Services: CFO Services , Market Research

Industry: Beauty Products and Manufacturing

No amount of praise can do justice to the quality of Sadaf’s CFO services. Her dedication to her clients is unparalleled. I have trusted her with two complicated accounts, and she handled everything with a professional attitude and without making any errors.

Andrina Founder

Industry: Healthcare

It is a pleasure to work with the Oak Team, particularly Sadaf. As a result of her partnership with me, I was able to gain a better understanding of financial decisions. For my CFO needs, I fully trust Oak!

Denver Maloney CEO

Services: Investor-Ready Document Services

Industry: Real Estate

This was our first time working together, but it was so easy to get started and Sadaf quickly understood our targets and accommodated the way we work. She was extremely patient with our continuous change in deliverables, worked hard to meet our expectations and often suggested how we could improve our work and make the project more efficient. Well skilled in her profession and an absolute pleasure to work with.

Lars Narfeldt COO

Services: Financial Model , Financial Forecasting , Pitch Deck & Market Research

Industry: Fintech

Sadaf was above & beyond what we could’ve asked for! I will certainly hire her again, and will recommend her to anyone I can! Her and her team’s quality of work is excellent, and she gets things done very quickly. She is very engaging, and responsive, there for our every beckon call. She spent nearly an hour on a phone call with us to go over the numbers and helped us brainstorm some new numbers when we needed them. Amazing, incredibly talented professional – you will be doing yourself a big favor if you hire her!! :)

Emma Sánchez Andrade Smith Co-Founder

Services: Startup Saas Financial Model , Market Research

Industry: SaaS

Thanks so much for working so hard on this project. Looking forward to working on many more projects with you and your team!

Sufian Chowdhury Founder & CEO

Industry: Fashion E-store

There is no doubt that Oak is a game-changer. A unique combination of experience and expertise makes them the best in the business. They have helped me relieve a lot of stress and improved the stability of my business. Having a teammate to guide me through big financial decisions is truly a blessing.

Stephanie Skourti Co-Founder

Services: Financial Model , Business Plan , Pitch Deck & Market Research

Industry: Blockchain

Excellent and professional approach and I am happy with the results. The working with team Oak Consultant was wonderful and all assignments were completed with lot of energy and professionalism by members of the team.

Lalit Vidhani Consultant

Services: Cash Flow Analysis Tool

Industry: Consulting Firm

Sadaf and her team have excellent excel spreadsheet skills. My client provided a rather complicated set of accounting reports that needed to be integrated into a spreadsheet format I had, but I didn’t have time to do it myself. With very limited instructions, Sadaf and her team successfully completed the integration and improved upon my spreadsheet with pivot tables and graphs. Will definitely keep her for future financial analysis and spreadsheet work.

Stacey Powell CEO

Industry: Information Technology Company

Oak bookkeeping services have been a great help. This company has a high level of professionalism, friendliness, and positivity! The service they provide is excellent, and I highly recommend them.

Sabeen Ali Founder

Industry: Telecom

Oak provides exceptional accounting services. You’ll find that they offer a much wider range of knowledge than your average accountant, making them a valuable asset to your company. Highly recommended!!!

Ramin Heydari CEO & President

Cloud / Ghost Kitchen

Financial projection template.

Create investor-ready financial projections for your Cloud / Ghost Kitchen in an afternoon. Fully editable 5 year Cloud / Ghost Kitchen including monthly and annual income statement, cash flow, and balance sheet projections.

Template Includes Everything Investors and Lenders Expect

The template guides you through everything you need to create your lender-ready financial projections quickly and reliably. No need to be an Excel wizard!

Watch the Demo!

The template will take your unique inputs and assumptions to automatically calculate and build your Income Statement (Profit & Loss), Balance Sheet, and Cash Flow statement. Any change you make on the input tabs will automatically be calculated and updated on your financial statements making for easy changes and experimentation. The financial statements are easily exported or printed for lenders or investors.

Financial Statements Included:

• 5 Year Income Statement Annual Summary
• 5 Year Income Statement Monthly Breakdown
• 5 year Cash Flow Statement Annual Summary
• 5 year Cash Flow Statement Monthly Breakdown
• 5 Year Projected Balance Sheet Annual Summary
• 5 Year Projected Balance Sheet Monthly Breakdown

Our At-A-Glance dashboard offers a concise financial overview of your Cloud / Ghost Kitchen's projections. With key financial ratios, break-even analyses, and start-up cost breakdown, your data becomes actionable. This tab, filled with tables, charts, and summaries allows you to easily drop key visuals into your pitch deck or investor memo.

Visualizations Include:

• Profit and loss summary table
• Initial start-up cost breakdown for your Cloud / Ghost Kitchen
• Key financial ratios
• Operational cash flow visuals
• 5-year summary profit & loss graph

Tailored for Cloud / Ghost Kitchens, this model generates accurate sales predictions based on specific Cloud / Ghost Kitchen income assumptions then automatically calculates and builds the financial statements.

• Menu Item Sales Forecasting: Estimate earnings from various menu items sold through online platforms and delivery services, considering factors like pricing, food costs, and demand.
• Multiple Cuisine Offerings: If applicable, factor in income from offering diverse cuisines or multiple virtual restaurant brands from the same kitchen.
• Delivery and Online Ordering Platforms: Account for revenue generated through partnerships with food delivery platforms and direct online orders.
• Catering and Bulk Orders: Consider potential earnings from catering services for events, corporate orders, or meal prep services.
• Financial Statements: All revenue is automatically calculated and added to your financial statements.
• Kitchen Lease and Utilities: Budget for the leasing costs of the kitchen space and monthly utilities like electricity, gas, and water.
• Food Supplies and Inventory: Estimate expenses for purchasing ingredients, packaging materials, and kitchen consumables.
• Staffing Expenses: Calculate costs for hiring chefs, kitchen staff, and support personnel, including wages and benefits.
• Platform Fees and Commissions: Account for fees or commissions paid to delivery and online ordering platforms.
• Marketing and Customer Acquisition: Allocate resources for digital marketing, social media advertising, and promotional offers to build brand presence.
• Insurance and Health Compliance: Plan for expenses related to business insurance, health inspections, and compliance with food safety regulations.
• Financial Statements: Expenses and salary data automatically populate the financial statements for consistent reporting.
• Startup Capital and Balance Sheet : Begin with assumptions about assets, loans, investments, and accounts payable to calculate startup capital needs and structure the balance sheet.
• Automated Financial Calculations : The template includes amortization, depreciation, and interest expenses in pro forma balance sheets.

More Than "Just a Template"

If you purchase this template, you'll receive more than just the template file. You also receive the support and expertise of our team!

Human support

If you have questions at any point about how to use your template, troubleshooting an issue, or need some general guidance, a real human on our team will provide direct and timely support until your issue is resolved! Support is provided over live chat, email, and we can record custom videos to demonstrate solutions to your problems.

Expert Review & Feedback

Between Adam’s 10+ years of experience making SBA loans, Grace’s experience as a CPA building custom financial models for tech businesses and real estate developers raising investment, and the rest of our team’s experience helping thousands of customers - you can be sure you’re going to be taken care of! We offer complimentary projection reviews and have access to helpful SBA & industry data to make sure your projections are ready for action.

No need to worry...

Creating projections can feel like a tall task. Our one of a kind template, process, and support make creating projections easy, fast, and ready for exactly what you need.

Don't worry... we're here to help!

Grace is our in-house CPA and takes the lead on our custom financial modeling where she has helped hundreds of tech startups and real estate developers build custom financial models to raise investment. She has built our entire library of projection templates to produce quality investor-ready financial data!

With our team’s experience of more than 10 years making SBA loans, we know what lenders are looking for in projections and this template will produce what they need in an impressive format. We even have lenders that use our templates themselves!

Support is Included with Purchase! We provide free support. Just send us your questions and your file and we will record a custom video to answer your specific questions and demonstrate on video.

In addition to our free support while you fill out the template, you also receive a complimentary review of your completed projections with your purchase. So, you can have one of our experts double check your work to make sure your projections are ready to go.

As long as you don’t delete sections of the template and you only edit the blue cells, it is unlikely that you will break anything, BUT if you do, just send us your file and we can troubleshoot for free or provide a fresh copy.

We have a free demo video that walks you through the template tab by tab to help get you started. Our support is also available to answer any questions as you go. Thousands of other business owners have created their projections, you can too!

Our expert team is here to help!

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Don't just take our word

6,000+ founders, owners, and advisors have successfully created projections for  SBA loans, pitch decks, and business plans with a 97%+ success rate.

How Does the Process Work?

Simplicity is the name of the game. Don't forget, our support experts are standing by to answer questions, troubleshoot, and review your projections!

100% Satisfaction Guaranteed

We want this purchase to be a no-brainer for you. If you try the template, watch the video guide, try to use our support and still don't find the template useful, we'll happily refund your full payment within 30 days of purchase.

Join Thousands of Happy Customers

Kajad Alobeyo

Runner Brothers LLC

Wood Duck Brewing Company

Founder, Wood Duck Brewing Company

David Smith

Kelly Speer

Chris Farmand

Small Batch Standard, Founder and CEO

George Doubleday

Mariea Lweis

Founder, Grill Forty Eight

Lavell Juan

Founder & CEO, Brag House

Danielle Capwell

Jamie Ramos

One time payment! Once you purchase your template, it is yours to use for good. And we will always provide support if you revisit the template many times in the future.

That’s okay! The templates are compatible with Google Sheets which is a free alternative to Excel that anyone can access. Instructions on how to open your file in Google Sheets are included with your purchase.

 If you don’t think that the template is working for you or is right for you, simply contact or support team at [email protected] to tell us what issue you are experiencing. Our team will do our best to try and equip you with a better template, fix the issue you are experiencing, and ultimately provide a refund if we cannot meet your needs with 30 days of purchase.

This template works best for any Cloud / Ghost Kitchen or ones that would like to create projections from scratch. If you have historical financial data that you’d like to input and build your projections from, we have a template specifically for Existing Businesses Here as well as one specifically for Acquisitions Here if you are looking to buy an existing Cloud / Ghost Kitchen.

You are in luck! First, we will do our best to guide you through any simple modification or workaround to achieve what you are wanting to do. If what you want is a bit more complex, we do have modification and custom model services available and we can provide you with a custom quote for those changes.

Still have questions?

Contact us here, through the live chat, or email us at [email protected]!