What is Cloud Kitchen and How to Set Up Cloud Kitchen?

Cloud Kitchen is becoming a modern and smart way to run a restaurant business for many entrepreneurs, both existing and aspiring. Reshaping India’s food business structure, the concept of a Cloud Kitchen is something that gives you the option to order food online. Food businesses that do not have the capital or infrastructure to set up physically but are able to offer door-step delivery options have been made possible through third-party platforms and orders placed online. Since all transactions and exchanges are made over the web, the concept has been named Cloud Kitchen. It has opened up a whole new possibility for aspiring restaurateurs who wish to set up their own restaurant but lacks the required funds and infrastructure. Take-away outlets have existed for many years but setting up a Cloud Kitchen goes a step further. It enables you to run your small-scale business from your home kitchen. 

Also Read: The Explosion Of Food Delivery — And How It Is Changing Everything About The Restaurant Business

How to Set Up a Cloud Kitchen?

Compared to any regular café or restaurant or even take-away counters, setting up a Cloud Kitchen require low Capital Expenditure. Space and infrastructure that you start with can be much smaller than a normal one. Even the logistics are taken care of through various platforms like food aggregators.

Tie-ups with food aggregators

The food delivery system has been revolutionized in the past few years with major food aggregators like Swiggy, Food Panda, Zomato, Uber Eats and the likes of it. These platforms are commonly used and a name now popularly known by people. While you can always invest and set up your own logistics, tie-ups with well-known platforms can be beneficial. Partnering with food aggregators would require you to pay a commission. In return, your newly set up business gets visibility and the convenience of becoming easily discoverable to an existing customer base that uses these apps on a regular basis. Once your business is established and has its loyal customer base, a little investment towards setting up an in-house delivery system can then be rewarding in the long run.

Also Read: 5 Ways In Which Technology Can Help You Transform Your Restaurant Business


Cloud Kitchen does not have any physical presence and relies solely on its presence virtually. Reaching out to a wider audience is crucial and businesses must, therefore, invest in marketing strategies, targeting its customer base through social media and a well-developed website. To take it a step further, your presence on social media must be engaging and interactive. Customers should be able to find ways to contact you and leave their feedback, be it positive or negative. It takes good marketing skills and quality services to convert a potential customer base into a loyalist for the long term.

Also Read: Consider 5 Easy Tips To Maintain Your Restaurant Business


Just because a Cloud Kitchen setup is smaller and different from regular kitchens does not mean you could manage it all on your own. Having a set of reliable and skilled people can make your supply process efficient and smooth. This could be in the form of kitchen helpers, delivery boys and even chefs skilled in particular cuisines.

Inventory Management 

The initial setup and estimate of keeping an inventory can be challenging. A well-developed tracking system can help you once your business takes off and give you a better idea based on the frequency of orders and the number of ingredients and raw materials required accordingly. 

Also Read: Top 5 Ingredients To Cook Up A Successful Restaurant Business

Diversifying Your Existing Business

Many established restaurants who wish to diversify their business are also finding the Cloud Kitchen model helpful. Sometimes, restaurant owners run their business under certain brand names specialising in one particular cuisine. In wanting to try different cuisine, their existing infrastructure can help while marketing their new kitchen under different brand name while having a common kitchen base.

Is Cloud Kitchen The Future?

The food industry is ever-popular and always growing. As new innovations take over, the Cloud Kitchen is the next best thing coming up. Most people want quality food that is hygienic and to be able to have access to it without always having the need to physically go to a restaurant. The concept is economical for both parties. Food can be made more affordable by eliminating other overhead costs and people have the satisfaction of ordering in without having to spend on a commute or the extravagance of a restaurant. 

Also Read: How Online Delivery Services Boost Restaurant Business

Cloud Kitchen today has the potential of fulfilling the dreams of many small and medium scale entrepreneurs. Home-cooked tiffin services are becoming a more viable concept. Cloud kitchen can make possible what most people could not imagine doing because they were faced with common challenges like high rental costs, capital investments, and a robust infrastructure. 

Apply For Restaurant Business Loans

Your restaurant business has its own specific requirements. Be it marketing, hiring more staff, purchasing new equipment, setting up the restaurant, or just managing the daily expenses, without a steady flow of funds your business can severely suffer amid the growing competition. With the flexibility to choose your loan tenure and repayment schedule, your search for the best loan for the restaurant business in India is sure to end at Indifi. Apply online to know more about an unsecured business loan for the restaurant business.