With the F&B industry having undergone a massive transformation to adhere to the “new normal” during the pandemic, many restaurateurs looked to slash costs by identifying cheaper, more cost-effective ways to keep their businesses running. One of the most popular solutions was operating out of cloud kitchens as they were significantly cheaper than brick-and-mortar restaurants and provided business owners with a kitchen space in a thriving area with an already-established customer base.
However, since there are many different types of cloud kitchens, it can be confusing to pinpoint which one is best suited for your restaurant. Have no fear as Kitchen Connect is here to help!
What are cloud kitchens?
Even though you may be aware of cloud kitchens, you might not know exactly what they are. To put it simply, they are kitchen areas, usually varying in size, that are situated in a large commercial facility. Businesses operating out of them usually focus on deliveries only. Cloud kitchen providers typically have their facilities in densely populated areas with a high concentration of office buildings and residents, meaning restaurants can tap into an established clientele. Additionally, regardless of the type of cloud kitchen businesses work from, they won’t need as many employees, allowing restaurateurs to cut costs and divert the funds to other areas of the business.
The benefits to F&B businesses
Restaurants that utilise the spaces in cloud kitchens enjoy plenty of benefits, including;
- Reduced overhead costs – With no dine-in area, the need for waiters, bar staff and general managers becomes obsolete. The only employees needed are chefs to do the actual cooking!
- Reasonable prices – Many traditional restaurants need to hike up their prices in order to stay afloat since they need to pay rent, staff costs and other expenses. However, businesses in cloud kitchens only need to worry about a fraction of the same things. Due to this, their food is generally more reasonably priced, making their food more appealing to a wider group of people.
- Helpful technology – With online orders forming the very core of how cloud kitchens operate, they use state-of-the-art technology to help streamline the way the business is run. At Kitchen Connect’s facilities, top-notch software is utilised to allow restaurants to see all their orders come in on one tablet, regardless of how many food delivery platforms they are on.
- Thriving locations – Many cloud kitchen companies like Kitchen Connect have facilities in high-traffic areas, with plenty of businesses, schools and suburbs nearby in order to ensure businesses moving in can target the existing customer base before branching out to the surrounding areas or new markets.
- Interesting insights – As your cloud kitchen gains more and more orders, you can start noticing trends in regard to which dishes on your menu are the most popular and profitable. It also makes it easier to spot the items that aren’t performing well.
- Online driven – With the business models of cloud kitchens revolving around online orders, they don’t need to print physical menus like brick-and-mortar restaurants. Rather, they can focus on perfecting their online menu, which can then be uploaded to the various food delivery apps in Malaysia, such as Foodpanda, GrabFood and Beep.
The multiple types of cloud kitchens
1. Commercial kitchens
Mainly for restaurants and catering companies who require spacious industrial kitchens to fulfil sizable orders. They are widely used because neither a long-term lease nor resource sharing with other companies are necessary. Instead, you have your own private area where you can make whatever is necessary to please your clients.
2. Commissary kitchens
The best option for food and beverage businesses that must prepare and deliver food to many different locations. This kitchen would be ideal for you, for instance, if you operated a Nasi Lemak food truck in Malaysia. You can rent the commissary kitchens for a set period of time-based on when you need them and how many orders need to be catered for. Additionally, if you require more space to prepare food or store ingredients, there won’t be any additional fees. Given all these benefits and the fact that there is no requirement to rent the space on a full-time basis, it is easy to understand why it is a popular option among restaurateurs.
3. Incubator kitchens
These are essentially temporary pop-up kitchens that are located next to a brick-and-mortar restaurant. Incubator kitchens give restaurants enough space to concentrate solely on delivery orders rather than serving dine-in and delivery customers from one kitchen, which can result in a lot of hassle. It clears away all the chaos so that eateries can deliver delicious food while avoiding careless errors that would detract from customer satisfaction and possibly have a negative effect on the establishment’s reputation.
You can also pick the time of day that works best for your business since incubator kitchens are frequently shared spaces. In addition to attempting to maximise profits on the food concepts that have already been tried and tested, you can also experiment and introduce new ideas to see if they generate a positive reaction from customers.
4. Kitchen pods
Don’t be dissuaded by the fact that they frequently take the form of a shipping container. Since these areas can be used effectively to fulfil delivery orders and don’t need any additional personnel or equipment, restaurants can cut costs on both areas. Kitchen pods usually don’t have windows, meaning it is advisable to invest in lighting.
5. Cloud kitchens
Consisting of many kitchen spaces all located within one commercial facility, cloud kitchen businesses generally focus solely on delivery orders. Given their affordability and ability to give F&B businesses all the groundwork they require to launch almost immediately, cloud kitchens have grown in popularity in the F&B sector.
Which one will you pick?
Even though each of the aforementioned types of cloud kitchens has advantages of its own, the choice of which will work best for your company rests with you. Take everything into consideration before settling on the one that addresses the needs and requirements of your business.
Ready to start your own cloud kitchen business? Fill out the form or get in touch with us.