Technology has been shaping the future of Singapore with growing innovations emerging every day. Most of the industries in Singapore rely on technology to find feasible solutions for complex business problems. One of the most recent innovation has been in the food industry – the rise of cloud kitchens! Various restaurants and food-chains are looking forward to adopting this cloud-based technology to boost their business.
GrabKitchen is one of the most recent startups in the Singapore market based on the cloud kitchen model. It is a shared kitchen space that houses ten major restaurants on its premises. The innovative cloud kitchen is now considered as the smartest way of running a restaurant business. It bridges the gap between consumer demand and supply with a variety of food options available at different price points. The merchants can rent small kitchen units with most of the utilities managed by GrabKitchen. As a result, the expenditure for merchants as reduced significantly. Customers can place their orders using the platform and get it delivered to their given addresses. Alternatively, the customers also have the option to collect their orders from the GrabKitchen outlet as well.
What are Cloud Kitchens?
Cloud Kitchens have shared kitchen spaces that can be used by multiple restaurants and food-chains for mass production of food and its delivery. Usually, they do not have an option for dining and depend on food deliveries for sales. They are also known as ‘Ghost Kitchens’ or ‘Virtual Kitchens.’
One of the significant advantages of this business model is that the infrastructure cost is minimized with much emphasis on delivery-only kitchen. The merchants using cloud kitchens avail third-party delivery services to get their orders delivered to their customers. The operations of a cloud kitchen are maintained using a cloud-based platform that helps restaurants receive food orders from customers.
Benefits of Cloud Kitchens
Low Overhead Expenses
The primary advantage of cloud kitchen is low overhead expenses. These type of businesses do not necessarily require large working spaces. The shared kitchen space is sufficient for preparing food and beverages with the help of basic kitchen essentials. Also, unlike traditional restaurants, there are no options for dine-in as the food is either collected directly by customers or delivered through a food-delivery platform.
Better Efficiency and Management
Cloud kitchens are operated in a systematic and have a simple procedure for their business operations. There are lesser complexities in business activities which allows quicker preparation and delivery to the customers. In most of the cloud kitchens, the efficiency is higher owing to the simple model of business operations and management.
Easier Branding with Digital Platforms
Marketing of services becomes relatively more straightforward with cloud kitchens as they can effectively utilize digital platforms to acquire customers. The online platforms reduce the overall expenses spend on marketing. Also, it increases brand awareness among potential customers which can boost sales.
How to Run a Cloud Kitchen Business?
The process of business set up in Singapore is straightforward and effortless with professional services. Once your business is established, there are certain considerations that have to be made to successfully run your business. The following aspects should be considered for successfully running a cloud kitchen business:
Receiving and Processing orders
The cloud kitchen model hugely depends on the processing of orders. The major challenge involved here is the procedure in which orders are taken and processed. There are different ways of taking orders, such as using telephonic calls and online platforms. With the help of advancement in technology, it has become possible to integrate the ordering process in third-party platforms. These platforms help in the effective management of and processing of orders.
Inventory and Resource management
Managing inventory and resources are essential for cloud kitchen businesses. There should be effective management of suppliers, staff, inventory and equipment. Inventory management can include ingredients, orders and stock. Staff selection and handling are also important as the virtual kitchen business model have different staffing requirement than that of traditional restaurants.
Marketing
Marketing a cloud kitchen business is different from those of the traditional outlets. There are various methods to market a cloud kitchen such as online marketing, third-part integrations, tie-ups with other restaurants and offline tactics. Online platforms include websites, social media platforms and business listings. Building an online presence can be quite beneficial as it is comparatively easier and affordable than traditional methods. The other methods include using a third-part integration to manage orders and delivery. Businesses can also opt for offline tactics such as having tie-ups with local restaurants and distributing flyers or pamphlets.
* This post originally appeared on businesssetup.com