With all of the buzz surrounding multi-cuisine multi-brand Cloudkitchen in the food and beverage industry, everyone seems interested in learning more about this new phenomenon. People considering opening a restaurant are naturally curious about what a cloud kitchen is. But first, let’s better understand the cloud kitchen concept, how it differs from the universal dine-in restaurant, and the fundamental differences in their business models.
A delivery-only kitchen is a cloud or virtual kitchen with no physical dining facility and relies on online ordering through various food delivery websites. Dine-in restaurants, unlike cloud kitchens, are traditional brick-and-mortar establishments with their own distinct branding.
As restaurants prepare to reopen following an extended closure due to the coronavirus pandemic, most of the population remains uncertain about eating out, preferring to eat at home or order takeout.
Ordering food through apps has boosted cloud kitchens as the food industry has undergone a significant shift that will likely continue soon. With the low investment franchise opportunities, multiple restaurants rent space in cloud kitchens to prepare delivery-optimized food from an existing menu.
Difference between Cloud Kitchens and Dine-in Restaurants:
Regarding start-up and operational costs, the cloud kitchen and a dine-in restaurant have very different business models. Here are some of the key differences between the two business models.
Location
One of the most significant differences between the two models is their geographic location, as the success of a dine-in restaurant is primarily determined by its location. A restaurant owner must make sure that his establishment is located in a strategic area that is easily accessible to his customers.
On the other hand, a multi-cuisine multi-brand Cloudkitchen will be unconcerned about its location because it is only concerned with the food delivery and not with the customer’s convenience.
Expenditure on Personnel
The cost of hiring wait staff comes next, and cloud kitchens, once again, are very effective in this regard because they do not require any waiting staff.
The cost of hiring staff in dine-in restaurants can be high. You may also be required to provide them with training and other work-related benefits, which will add to the owner’s costs.
Cost of Investment
Another point of distinction between the two is the cost of investment. Generally, the cost of setting up a multi-cuisine multi-brand Cloudkitchen is less than that of a traditional kitchen. The cloud kitchen can be set up almost anywhere because it only requires a cooking area, basic kitchen equipment, and a connection to food delivery services.
On the other hand, the dine-in restaurant necessitates a fantastic interior, furniture set-up, kitchen setup, service staff, dining space, cleaning, and sanitary facilities.
Which Module Has A Future In The Restaurant Industry In India?
The demand for online food delivery has increased since the arrival of online food delivery platforms. People have begun to prefer online platforms due to the digitalization of all services and it’s the same when it comes to food. They don’t have time to walk down to a restaurant or drive through congested traffic to get food. And the food delivery service providers have done a fantastic job of solving this problem.
Cloud kitchens will revolutionize the way we eat in the future. The amount of risks are comparatively lower, which accounts for its growth. The financial constraints can be easily overcome because the demand for the digital platform reduces operational costs.
Key Takeaway
Traditional dining will always exist, but Cloud Kitchen will be the consumer’s first choice because they prefer to order online rather than visit a restaurant. Because of the convenience and mobility of consumers, this inclination is comfort eating and we at Hustlers Hospitality offer low investment franchise opportunities because we believe in innovating and providing consumers with the best food experience possible on the go and at their doorstep.
