One of the emerging sectors of business in 2021 is Cloud Kitchen Business. Cloud kitchen business has been on the roll for the past few years and with Covid-19 affecting the sector at large, it has seen an exponential growth. Before going further it is important to understand what is a Cloud kitchen Business? It is an online restaurant with no physical storefront and that runs mainly on online delivery system.
The entry barrier for cloud kitchen business is quite low and so the competition is very high. In order to succeed in cloud kitchen business, it is very important to make the business operation, very efficient.
Here are few ideas to make your cloud kitchen business operation efficient:
Max/ Optimum utilization of Space: One of the key elements of the success of cloud kitchen is, optimum utilization of space by having immaculate kitchen design, keeping in mind the smooth work flow from production to packaging. When kitchen space is optimized, you will have to pay fewer rentals and that has a direct effect on your profitability.
Implementing system & process: Every function in the cloud kitchen operation should have a process that has to be followed to the toe. Have SOPs (Standard Operating System) for each of the operation processes like procurement, production, inventory management, recipe management in place. And each of these processes should be integrated with the technology. Install Recipe management system software to automate your food preparation process which will help you to get consistency in the quality and quantity of the food prepared and get an edge in the competitive market. Also automate your procurement & Inventory management system with Supply chain Management tool to understand your wastage, Food Cost & Stock of Material. The attrition rate in F & B is very high so, it is almost essential for a cloud kitchen business to have a system that is integrated with technology, to remove human error and have consistency in quality.
Customer ordering system: Having an efficient customer ordering system is also one of the key elements of success for a cloud kitchen business. One needs to have a POS (Point of sale) installed in the cloud kitchen through which all online orders land up. This will help you to smoothen the customer order management. Time being essence in cloud kitchen operation, POS is a saviour. Various food aggregators like Zomato & Swiggy also can be integrated with the POS and thus, help to streamline all orders at one place. Another advantage of having a POS is being able to get analytics on customer buying behaviour that will help you to know the pulse of the customers. These helps to have an efficient CRM, which leads to happy customers and that result in happy cloud kitchen owners.
Efficient delivery Process: Tying up with food aggregators has a lot of advantages. One of them is being the prompt presence of delivery person for the orders. Delivering orders efficiently in the stipulated time is one of the key elements of cloud kitchen business operation.
Efficient Packaging Process: Although packaging process is part of the cloud kitchen operation process, but thought to mention this separately because of its importance in the cloud kitchen business operation. At the very beginning, I have mentioned having an excellent kitchen design as it is important to have an efficient flow of prepared food from the preparation point to the packaging point for onward delivery. Next important thing is the packaging that is being used. It is utmost important to have packaging that is tamper proof & leak proof so that customers can have food in its right temperature.
Effective Delegation: To manage your cloud kitchen operation efficiently, you have to bring in skilled manpower, train them and delegate the urgent & important work. As a business owner, it is very important for you to concentrate on the most important task that is increasing revenue generation. With delegation, you can do so.
Manpower planning & training: Spend time with your team; train them not only to perform their work efficiently but also to motivate them with the brands vision & purpose. These help to have a strong work culture within the organization. With the increase operation efficiency, your cloud kitchen business will be able to give a WOW experience to your customers. By gaining happy customers, your revenue will increase. With increase in sale, your unit fixed cost will decrease and you will get better economy of scale. This economy of scale, in turn will help you to have increase profitability & better ROI.
About the Author
Mahua Ghosh is the Founder of “The Filling Station”, a Food E-comm Brand & Food Startup Coach. She started her entrepreneur journey in 2010. “The Filling Station” started as a QSR brand in 2013 and presently they have completely migrated to E-Comm. With her entrepreneur experience, she help aspiring entrepreneurs to start their entrepreneur journey in cloud kitchen business, one of the hottest sector of 2021.