In this article, we will learn about a woman entrepreneur who started her own cloud kitchen business and became successful. Below we learn about Mrs. Anusha’s cloud kitchen business, her experiences, details, and the investment and profits involved.
An entrepreneur earning 24 lakhs from cloud kitchen
What is a cloud kitchen?
Cloud kitchens are also sometimes referred to as ghost kitchens or virtual kitchens. The idea is to allow diners to place food orders in advance over the internet. As technology advances, it will become easier and easier for individuals to communicate with one another. Sometimes called a ghost kitchen or a satellite kitchen, a cloud kitchen is another name for online food preparation and serving space.
As a result, it presents a wealth of options for restaurants, kitchens, and other enterprises involved in the food preparation process. The primary goal is to carry out and oversee the delivery of all meal orders submitted online. There is nothing to eat, as the name implies. Orders for meals from these establishments are often made via a dedicated website. The same functionality can be attained via the use of a downloadable app.
Zomato and Swiggy are among the most popular online food-ordering services. You need only one POS system to handle orders from around the world. Here’s where the cloud kitchen comes into play. Online meal delivery has become commonplace in both private and public establishments. In response, the number of cloud kitchens in India has grown.
What are the advantages of cloud kitchens?
We are well aware of the differences between traditional eateries and Cloud Kitchens. It’s not necessary to have a brick-and-mortar storefront or even an online presence to run a successful business. Because the cloud kitchen eliminates the need for costly upfront investments in things like a physical location, cooking equipment, and interior design, more money can be put into growing your business’s reputation and customer base.
As a result of your modest initial investment, your per-unit manufacturing costs will likewise be minimal. The only expenditures your business will incur are the material utilization, the ingredients necessary to prepare the dish, and a small proportion of royalties. You also don’t have to worry about hidden fees, so the money you earn from each new client is substantial.
Only you and a handful of other cooks will be in charge of making the meals. Only you and one or two cooks are needed; no wait staff, housekeeping, or management are necessary. Paying the salaries of just two or three of them reduces costs further. You will need extra help, though, if your firm expands or if you add more dishes to your menu. Yet, for beginners, you can start with only a small team.
How do I start a small cloud kitchen?
How well a cloud kitchen does depends on the types of people who use it. When you open a cloud kitchen for business, you must know to whom you want to sell. For example, what a family needs are very different from what a young, gym-going twenty-something needs. Families and gym rats have different dietary needs, but they all want something with much protein. Knowing whom you’re serving can help you develop a great food idea, menu, and marketing plan.
You can open a new location in less than a month if you have a commercial kitchen set up for delivery. It costs 40–50% less than going to a regular restaurant. We can have much lower costs for labor and property. You have enough money to cover the costs of getting started. You can always borrow from close friends and family if you are short on cash. You could also try to get money from a bank or credit union closer to home.
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Your cloud kitchen doesn’t have to be where everyone can see it. It doesn’t matter if your location is in an industrial zone or a residential lane. If the rent is low, there will be less money spent on brokerage and capital costs. A space of 500 square feet can be enough for your organization. Ensure drivers have a parking place and that the delivery process goes smoothly. A valid FSSAI license is important because it sets the rules for how your food is prepared, cooked, and served.
The license could be anywhere from one to five years and will need to be renewed often. You can put the FSSAI number on the package to give your customers more peace. The packaging is the only thing your customers will ever see of your business. Creating your brand with creative packaging is a great way to do this. To have less of an impact on the environment, use biodegradable packaging for meals instead of plastic. Food should be tightly wrapped to keep it from getting dirty.
The success story of Mrs. Anusha
Mrs. Anusha lives in Hyderabad, Telangana. She used to be a housewife in the past. Due to the pandemic, her husband lost his job, and her financial situation became unstable in her house. To support his family, her husband then started to work two jobs at the same time. This became a huge stress for him. Mrs. Anusha wanted to help him financially but had no idea how. She began searching over the internet about different businesses that can be started from home and then came across a cloud kitchen business idea.
In a cloud kitchen, a commercial kitchen is used to make meals for takeaway or delivery orders alone; there are no dine-in customers. With the help of cloud kitchens, entrepreneurs in the restaurant industry can launch a new virtual brand or significantly increase the size of their current establishment with minimal capital cost. As Mrs. Anusha was always good at cooking and baking, she started her cloud kitchen. She then shared this idea with her husband, and even he loved it.
She immediately started the process and established a cloud kitchen in a month. She acquired the food licenses required and started selling her food online. Within no time, she could get huge profits, and even her husband quit his job and started investing his full time in her cloud kitchen. Below we will see how Mrs. Anusha started her cloud kitchen and her experiences, and we will also see the management details of running a cloud kitchen along with involved investments and profits.
Management details of Mrs. Anusha’s cloud kitchen in her own words
Mrs. Anusha said that he was always interested in cooking food for others since the early days of her life. She used to note down different new recipes from the television and used to cook them for her friends and family. Her family and friends circle everyone is a fan of her cooking. She said that she wanted to make this passion into a profession, and that’s why she started a cloud kitchen, says Mrs. Anusha. Mrs. Anusha says that a cloud kitchen gives the owner the privacy of making and selling food without directly interacting with the customer.
Unlike restaurants, there will be no commercial space for serving food in cloud kitchens. Also, it lessens the burden of preparing many items served in restaurants. It allows you to sell the only food items you can prepare in quantity and recipes. Mrs. Anusha started her cloud kitchen in 2020. When she started, she wanted to experiment with this idea regarding investment and profit to understand how much potential this idea has.
She started by selling Biryani, Hyderabad’s most loved food item. She didn’t spend anything on marketing; she just registered with Zomato and Swiggy. She said she prepared her food with the utmost care by choosing oils and other quality ingredients. On the first day, she said she prepared her food only for ten members and sold all the biryani in just 5 hours. She understood how much quantity should be made.
From the next day onwards, she prepared biryani that would be enough for 20 people, and even on the next day, she ended her sales by night. She slowly started to market her business by telling her friends in the neighborhood. As days passed, tasting her quality and delicious biryani, people started ordering in huge amounts. This made her very happy, and only in the first month could she make nearly 30,000 rupees as profit without any marketing.
As the months passed, the orders were booming, and she wanted to create a new space for her kitchen. She rented a space in the neighborhood, employed three people, and started preparing different items such as snacks, rice, and biryani. She even started marketing on social media. She created an Instagram page for her cloud kitchen and listed all the food items and how the items are prepared healthily. She even posts preparing videos of various food items. This made customers gain trust in her products.
She was very particular that the packaging was done in an attractive. She used plastic packets with their brand sticker for her snack items. She says choosing quality oils is one of the most crucial when starting a cloud kitchen. This will directly affect the customer’s health, positively or negatively, based on the oil you use. Choosing quality oil and not reusing oil often is critical to preparing food in a cloud kitchen.
Mrs. Anoosha says that one can start a cloud kitchen with as less as 5,000 rupees and in just a 100 sqft space. Your only investment will be the raw materials. Your cloud kitchen will have a high-profit potential as no middle person prepares the food. This will cut a huge margin. This can help you sell your products at a lesser price than any restaurant and also can have more profit per item than they are earning. At the start of 2022, she even purchased equipment such as self-cooking machines.
She started selling regular meals such as sambar rice, curd rice, etc., at a low price compared to others; these meals are very tasty and are ordered by people who go to the office daily. She bought tables to avoid keeping the plates that hold the ingredients on the ground. She says that she always ensures a clean ambiance in her house. Mrs. Anusha says you must acquire an FSSAI food license as a safety procedure. You can even show it while marketing, which will help people to trust you and gain customers.
Investment and profit details of Mr. Anusha’s cloud kitchen
Mrs. Anusha says that one can make a minimum of 35% profit margin from cloud kitchen, which is very high. When it comes to her cloud kitchen, Mrs. Anusha invests nearly 2.2 lakh rupees in her cloud kitchen business and gets an income of nearly 4.5 lakh rupees per month. This means her net profit is nearly 2.3 lakh rupees, which is huge. Her investment cost contains raw materials, electricity bills, and staff. Even with all these particulars, obtaining such huge profits is excellent, says Mrs. Anusha.
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Even if we take 2 lakh rupees on average, Mrs. Anusha earns nearly 24 lakh rupees from cloud kitchen. Mrs. Anusha advises women looking to start their own business and are good at cooking to start this business as it has high-profit potential. She says that initially, one can start on a small scale, and once the scope has increased, one can start expanding your business. She is now happy and satisfied with what she is doing, becoming a financially stable and independent woman.
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