Published By: Debapriya

Cloud Kitchens: Exploring the Advantages and Disadvantages

Start earning from your home kitchen!

Self-run business and entrepreneurship have tremendously risen over the past couple of years because of the decreasing number of jobs throughout the world. The restaurant industry has always been one of the major owners of the stock markets and has always attracted numerous entrepreneurs to start their exploration. Slowly, the combination of new business models and the ingenuity of the entrepreneurs gave rise to the idea of Cloud Kitchen.

Cloud Kitchen can be described as a set-up where there is no particular sit-in dining space but rather only delivery service. Most restaurant businesses which were founded in the earlier days focused on online delivery of their items through applications. Cloud Kitchen depends entirely on the aspect of online delivery. What are the pros and cons of this business style? Let us dive in!

Pros of Cloud Kitchen

There are several benefits which one could take from the concept of cloud kitchen and some of them are summarized as follows.

Low cost

The cost of getting materials to cook and deliver is already high enough. When you have to think of investing in the aesthetics of a place and providing seating areas as well, things can turn out to be a bit messy. Cloud kitchen eliminates the possibility of any such incident and focuses solely on the cooking and delivery parts.

Easy to Scale

Upscaling a cloud kitchen can be easier than scaling of restaurant space. It will be easier to turn Cloud Kitchen into a franchise and spend less time doing so. The virtue of online services can help to avoid the issues of waiters, interior décor and parking, all at once.

Profit Margin

Since your investment is lower in comparison to the buildup of restaurant service, the profit margin will naturally be higher. Capital spending is a lot less and you can start the business in your kitchen without any other hassle.

Cons of Cloud Kitchen

Like any other business, there are some cons to running the cloud kitchen idea. The cons are:

Only Virtual Customers

If you are a chef who loves to cook, you will be bothered by the lack of actual guests or customers. Surely they might be enjoying your food in a different location but the overall job satisfaction is extremely low in the case of cloud kitchens. This might reduce your motivation to continue the business in this form.

Limited Presence

Since cloud kitchens face marketing issues, their presence in the market is relatively limited, restaurant dining is still considered to be a fun activity whether it is for families for first dates or even a group of friends. Thus, the approach of getting your food at home might become boring when you have company.

Conclusion

Every coin has two sides. Flipping a coin will help you to know these aspects in detail. However, this does not mean that cloud kitchens are failed ideas. These are extremely innovative entrepreneur-based ideas which have evolved and have become a part of daily lives. However, you should keep in mind that cloud kitchens walk hand in hand with the present corporate solitude. Whether you would appreciate this notion or disapprove of, it is entirely up to you!