Start your own cloud kitchen

Start your own cloud kitchen

Food is an attractive business opportunity that works through the best and worst times, if you can create a niche. It’s amongst the most popular small business ideas to start. The uncertainty this pandemic has brought into our lives has surely affected businesses, but a cloud kitchen is a good opportunity even now. It allows you to start small with limited overheads and gives the ability to scale up as you build your business.

A cloud kitchen is just a restaurant kitchen with no walk-in customers. So, you can start from just about anywhere and start taking online orders through Swiggy, Zomato or Amazon (a new entrant). You will need a base kitchen that delivers food through orders from any of these delivery apps.

Since all orders come through online food delivery apps, you will only need to keep a track of the orders from each platform and track your revenues. There are may success stories of home chefs who have now turned their skill into successful cloud kitchen businesses. You could be next.

Suitable Location

The big advantage with a cloud kitchen is you don’t have to be in a busy space or expect footfalls. Find a place that has potential customers for your kind of food – a place as small as 300 to 500 Sq.ft which can work as a kitchen and you are all set to go. Your orders come through online apps so no one will ever need to know where you are sending it from. This brings down your cost of initial set up significantly.

Your location should be close to residential areas or apartments and be accessible to your target customers with a quick delivery.

In most cities you will also find plug and play cloud kitchens which are available on rent. They usually comes with all the facilities you need including fire safety arrangements, making it compliant and easy to start from.

Branding

While you may not need a road facing or prime location for your cloud kitchen, branding your business is very essential. Remember your customers don’t know where you operate from and how clean your kitchen is. All their perception is completely based on how you package and present your food. Invest in a good design for your logo, high quality hygiene products for packaging and make sure the packaging and the food is appealing. This is what will create a lasting impression for your brand.

Compliance & Registrations

There are only 5 things you will need to start a cloud kitchen. (Pertaining to compliances and laws).

1. Company Registration
2. FSSAI License
3. Trade License
4. GST Registration
5. Fire & Safety License (Progressively)

EOB provides all these services to assist you with fulfilling your dream to start your own cloud kitchen.

For many reasons, obtaining proper licenses and certification is important to open a cloud kitchen. Having the licenses in order will save you from legal difficulties. And because consumers cannot visit the outlet themselves to test for sanitation, food safety and preparation, proper licensing gives them a sense of satisfaction. You can promote these on your website and in your marketing campaigns to convince your customers that you prepare high-quality food.

Registering your business & trademarking

The food business is attractive to look at but has its share of challenges. Abiding by the law and building customer confidence is the key. To enable this, the first step is to register your business with an attractive name that connects with your audience. You can also have a company name different from the brand name you choose to use for your food business.

It’s also important to trademark your name to ensure its not misused by anyone else. Trademarking your name also helps to protect your identity and build credibility amongst your audience.

FSSAI License: Food Safety and Standards Authority of India. FSSAI Licenses are mandatory for food-related business in India and must be obtained on behalf of the company and its owner. The license period can range from 1 year to 5 years and must be renewed before expiry. It’s also nice to mention FSSAI on the packaging and invoice to build confidence in our customers about our offers.

GST: GST registration is mandatory for any business in India and it is also recommended to file all the company related taxes timely. GST must be submitted weekly, quarterly and annually. GST also helps to procure licensed vendors, as it reduces the tax amount if all parties have a GST number. Upon obtaining a bank account, we can apply for a GST number.

Trade License: Every business will require to possess a trade license, and so does the cloud kitchen. This can be obtained from the local municipal office by furnishing all necessary documents. Though it can take some time and money, it is a one-time job and a mandatory legal action.

Fire and Safety License: Now it’s not mandatory to start with, but it is great to save yourself from future troubles. This is part of law, and fire and human health agreements are compulsory for any workplace.

Food for thought

Always start a business only if you are passionate about it. Everyone gets ideas but only a few can execute it successfully. And this execution needs a passion and drive to excel and succeed. So, if food is your passion, we have made it easy for you to understand what needs to be planned for and how to start. Need assistance with any of these? Reach out to us and we will be happy to assist you.