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How Cloud Kitchen Business Model is Effective for Restaurants

Everyone is worried about COVID 2nd wave.

Let’s not talk about COVID but focus on how you can run your restaurant business effectively.

Cloud Kitchens, the commercial restaurants with delivery-only facilities, in most of the cases.

It offers immense flexibility to the restaurant customers to experiment with the service areas, food tastes, menu, operational & working conditions, etc.

However, the concept of food delivery is not alien to any of us, but what makes cloud kitchens different from traditional food delivery services is that they work only as production units.

No fancy premises or amenities, 

No waiters or managing staff, 

just the chef and delivery personals make cloud kitchen work. 

Isn’t it an excellent and effective business model?

Unless the cloud kitchen restaurants have their custom food delivery apps, they are most likely to depend on the third-party aggregator food delivery apps to get their orders delivered.

These aggregators, food delivery apps charge anywhere around 15-35% commission on each order. 

It is better to consider having your custom food delivery app for your cloud kitchen business to avoid this. P.S. – it will save 20% of your cloud kitchen profits.

Besides, with technological advancements & changing customer behaviour, it is worthwhile to have a custom app for your cloud kitchen business for managing your orders and deliveries.

The revenue model for your restaurant is your own cloud kitchen website and mobile application

A mobile app and a website of your cloud kitchen to receive & manage orders, process & manage payments, and efficient management of your cloud kitchen.

Four noticeable benefits to choose your own cloud kitchen app or web platform

  1. Robust order & delivery management:

Cloud kitchens with custom food delivery apps are more likely to give a great customer experience, giving them a further edge over traditional cloud kitchens in alliance with the aggregator apps.

Not being tied to any aggregator or physical location, you can experiment with your menu and operating time as per your business needs without impacting customer satisfaction.

As tech-dominant, the custom cloud kitchen app can efficiently optimise the model and be smarter with your ordering and preparations decisions over time, suiting your scheduling and consumer behaviour and increasing margins.

  1. Commission-free with your custom branding:

Let me tell you one thing straight. If you want your business successful, then it is never a good decision to rely on one source for customers, i.e., here, an aggregator app.

By having your custom cloud kitchen app, you can explore many untouched areas to get new customers through branding and marketing.

Additionally, the higher commissions on the aggregator app can eat up your margins and leave little (or no) control over last-mile food delivery, which ultimately puts your brand reputation at risk.

With your custom cloud kitchen pp, you can limit such negative impressions on your brand, and by being tech-independent, you can map and trace the changes needed.

Though it comes with slightly higher marketing costs and higher costs for logistics compliances, trust me, it will all be worth it in the coming future, in terms of higher sales and profits.

  1. Access to user data and real-time adaptability:

Cloud kitchen itself is an optimised business model.

It gives you the flexibility to experiment with your business strategy, and having your custom cloud kitchen app gives you data to make those decisions wisely.

You can analyse the user data in real-time, such as their food demand, order patterns, etc., through your custom cloud kitchen app and use them for future predictions to alter your business strategies accordingly.

  1. Digital brand awareness without high marketing spend:

You can get quick exposure & visibility in the market for your cloud kitchen business through your custom cloud kitchen app without indulging in many costliest expenses on conventional marketing.

Connect us now to know – how to be creative with brand marketing through your custom cloud kitchen app.

Also Read:

Business Model of Food Delivery Apps: Capital Cost, Operating Cost, Break-Even Time and ROI Strategies

Get your favourite slice of cloud kitchen pie with us!

Having teammates who are a foodie and developer deadly combo, the passion for delivering a business solution becomes an out-of-box solution for your restaurant business. 

Our white-label cloud kitchen app solution can offer advanced features like

  • Boost Zone – that identifies areas with higher demand and diverting more drivers to there.
  • Advanced Job Allocation Algorithm – that reduces gathering at the restaurant.
  • Smart Selfie – that validates the drivers’ identification.
  • Three-way Review System – with which drivers, users, restaurant customers can rate each other.

And many more.

Reach more customers in your locality for your cloud kitchen business with a feature-rich food delivery app.

food-delivery-app-development

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