• U-Franchise

5 Things You Should Know About Cloud Kitchens

Did you know that many of the well-loved restaurants featured in various food delivery apps today are cloud kitchens?

Also known as virtual kitchens, ghost kitchens, or ghost restaurants, cloud kitchens have been making waves nowadays as an offshoot of the current food delivery revolution. However, this business format is not an entirely new concept as it has been around even before the pandemic hit.

Since cloud kitchens expand and optimize food delivery services at minimal cost, this format has become even more viable during the pandemic. Mainly utilized for the purpose of food preparation for delivery, cloud kitchens have been allowing restaurateurs to save on overhead costs spent on the dining area, parking, store interiors, client-facing staff, and more.

Many new businesses have also entered the market via the cloud kitchen route because of its low startup costs and its ability to ride on existing delivery options. Moreover, cloud kitchens take advantage of the online buying/selling platform. Customers don’t have to be physically present at the store to purchase the product. They can easily buy online and have it delivered to their location.

Indeed, cloud kitchen has been an avenue for existing restaurants to expand their brand or even create a virtual brand at a low cost. In addition, cloud kitchens can be utilized to experiment on new concepts, explore emerging markets, and scale up the business.

Here are 5 things you should know about cloud kitchens:

1. Cloud kitchens can be franchisable

As long as cloud kitchen concepts meet the criteria for franchisability, cloud kitchens can expand through franchising. For this particular format to be manageable as a franchise though, it is preferred that they be operated in commercial locations and not at franchisee’s homes.

This way, it will be easier to conduct compliance/quality visits to the franchisee’s place of business and not at his/her residence. It will also be easier to separate business activity from those of the home. It may also be difficult for some residential locations to be given a business permit.

Indeed, cloud kitchens are franchisable since they provide lower costs on start-up and operations as compared to full dine-in restaurants. Moreover, the system is simpler and easier to replicate since it focuses on food preparation and delivery only.

A great example of a cloud kitchen franchise is The Six Pack Chef. As the first healthy meal subscription delivery franchise in the world, The Six Pack Chef offers chef-created, premium diet-certified meals delivered fresh daily from their cloud kitchen on a subscription basis. On average, The Six Pack Chef delivers 17,000+ meals every month and receives around Php 21,000+ on orders per customer per year.

2. Cloud kitchens can serve several types of cuisine using the same facility