101 Guide on How to Start a Cloud Kitchen from Home

In recent times, the cloud kitchen concept has been rapidly gaining momentum, transforming the food delivery landscape. Also known as ghost kitchens, these innovative culinary hubs focus solely on preparing and delivering meals directly to customers' doorsteps without the need for a dine-in experience. Unlike traditional restaurants, cloud kitchens skip the front-of-house service, operating on a streamlined "kitchen to door" model. Orders are placed via phone, websites, or popular online platforms, and cloud kitchens often partner with services like Swiggy and Zomato to ensure seamless delivery. Essentially, these kitchens are all about cooking up delicious meals tailored to the menu and getting them to hungry customers quickly and efficiently. Local Samosa tells you how to set up your cloud kitchen from scratch.

What Are The Different Types Of Cloud Kitchens?

Before launching into the cloud kitchen business, it’s important to understand the various models available. Cloud kitchens offer different business models to explore. If you're thinking of starting small, a home tiffin service could be a great initial step, which you can later expand. Here are the various types of cloud kitchens you can consider.

1. Standalone/Single Brand Cloud Kitchens

Standalone cloud kitchens focus on a single cuisine or theme, offering a small and streamlined menu—typically with only one or two types of cuisine. These kitchens usually operate in compact spaces and cater to a niche market, allowing them to keep costs low and operations simple. Some of the most well-known cloud kitchen brands in India include Rebel Foods (which owns brands like Faasos, Behrouz Biryani, and Oven Story), Box8, and Biryani by Kilo.

2. Virtual Restaurants

Virtual restaurants operate alongside an existing brick-and-mortar restaurant. The main restaurant may have a section dedicated to the cloud kitchen, offering a separate menu from the main dining area. This model allows restaurants to experiment with new cuisines without altering their established offering.

3. Multi-Brand Cloud Kitchens

In the multi-brand model, a larger infrastructure is used to manage multiple brands under one parent company. The different brands share the same kitchen, equipment, and resources, but each brand caters to a different cuisine or customer base. This model allows businesses to appeal to a wider audience, thereby increasing potential revenue.

4. Co-Working Kitchen Spaces

Co-working kitchen spaces are large kitchens that offer individual units for rent to different restaurant brands. These units are fully equipped with kitchen tools, utilities, and infrastructure for each brand to operate independently. These kitchens are usually located in high-demand areas, ensuring easy access to a variety of customer bases.

5. Aggregator Managed Cloud Kitchens

Aggregator-managed cloud kitchens are large shared spaces run by online food delivery platforms like Uber Eats, Deliveroo, or Just Eat. These platforms invite their top restaurant partners to operate from these kitchens, offering delivery-only services. The food is prepared and delivered to customers through the platform’s network.

6. Operator Managed Cloud Kitchens

Operator-managed cloud kitchens function like virtual franchising. A kitchen operator runs the cloud kitchen business on behalf of an existing or new restaurant brand. Orders can be placed through online food aggregators or a dedicated platform, and the operator handles everything from order processing to delivery logistics.

How To Start A Cloud Kitchen From Home?

Starting a cloud kitchen from home can be a great way to enter the food business, but it requires careful planning and effort. Here are some key factors to think about before starting.

1. Who Is Your Customer?

Research your target market—understand the local demographics, their food preferences, and the price range they are comfortable with. Knowing your customer will help you craft a tailored menu and marketing strategy, both of which are essential to success. Remember, you can’t be everything to everyone, so focus on a specific group and their needs.

2. Concept And Your Name

If you’re already in the food business, you likely know that a unique concept is key to standing out. The concept you choose should be well-researched and resonate with your target audience. Your cloud kitchen will need a memorable and catchy name that aligns with the brand identity and attracts attention.

3. What’s Your Menu And Price?

Your menu should reflect the tastes and preferences of your target customers. Avoid offering dishes that won’t resonate with them. Design your menu early on, test recipes, and get feedback. Once your menu is finalised, ensure the pricing is competitive while reflecting the quality and quantity of the food you offer.

4. Delivery

Delivery is a key element in setting up a Cloud Kitchen. Since the current food space is all about quick commerce and lightning-speed delivery, planning for it is key. Platforms like Zomato, Swiggy, UberEats and more charge restaurants and kitchens a commission ranging from 15% to 25% per order. Commission percentages can vary based on factors like location, order volume, and restaurant brand value. You may also face additional costs for payment gateway charges and GST. Some platforms, like Swiggy, have introduced new initiatives like Swiggy Launchpad, where newly onboarded eateries may not have to pay any commissions for the first month. 

Also, there are several resources available now. Recently, Speed Kitchen appeared on episode 7 of Season 4 of Shark Tank India, seeking an investment of Rs. 2 crore. The brand aims to provide fully equipped, ready-to-use commercial kitchen spaces for food entrepreneurs.

Your Checklist Before Starting a Cloud Kitchen Business

The cloud kitchen model offers low investment and high returns, making it an attractive option for entrepreneurs. However, success requires careful planning and attention to detail. Here’s a checklist to help you get started:

1. Location

One of the main advantages of a cloud kitchen is that it doesn’t require prime commercial real estate. You can operate from a residential area or a space with low rental costs, such as a back alley or an unused parking lot. The key is to ensure that the location has a high demand for food delivery, especially for the type of cuisine you plan to serve.

2. Licences

Obtaining the necessary licences and certifications is crucial for running a cloud kitchen. Ensure you have the required food safety certifications, such as the FSSAI (Food Safety and Standards Authority of India), along with other licences like GST registration and fire safety clearance. These licences are essential to avoid any legal challenges down the line.

3. Kitchen Equipment

The type of kitchen equipment you’ll need depends on your menu. At the very least, you’ll need basic items such as a stove, oven, refrigerator, cutting counters, and utensils. Packaging is also essential—proper packaging ensures the food reaches customers in optimal condition and helps maintain a positive customer experience.

How to Market Your Cloud Kitchen Business?

While starting a cloud kitchen is one thing, marketing it effectively is what will determine its success. As there is no physical space for customers to visit, you’ll need to focus on digital marketing and delivery promotions. Here’s how you can market your cloud kitchen effectively:

• List on Online Aggregators: Make your cloud kitchen discoverable on food delivery platforms like Zomato, Uber Eats, or Swiggy.
• Promote Your Kitchen on Online Platforms: Use paid ads and promotions to reach new customers and get noticed on aggregators.
• Social Media Marketing: Leverage social media channels such as Instagram, Facebook, Twitter, and even LinkedIn to engage with customers and build brand awareness.
• SEO and Content Marketing: Optimise your website for search engines to attract organic traffic.
• Loyalty Programs: Encourage repeat orders through loyalty schemes, SMS promotions, and email marketing.

The cloud kitchen model offers exciting opportunities for food enthusiasts and budding restaurateurs. With relatively low investment and the potential for high returns, it is an ideal business model for anyone looking to enter the food industry without the complexity of running a traditional restaurant.