The cloud kitchen concept has emerged as an essential trend in the food industry of today’s modern age. The delivery-only ventures go hand-in-hand with the growing demand for food deliveries across the world. According to a report, the cloud kitchen business model is expected to grow $71.4 billion by the year 2027.

This increasing demand in food deliveries and expansion of the cloud kitchen concept is leading to more competition in the market for restaurants to make their delivery services more optimized compared to the high-value service being provided by ghost kitchens.

What are cloud kitchens?

Cloud kitchens are delivery-only restaurants, without any dining space, and with only one goal in mind: to provide optimized delivery solutions to a wide location, resulting in the expansion of the restaurant business. In this regard, the cloud kitchen concept is high profit and minimizes risks for every restaurant. How? We discuss all of that in this blog.

Why Cloud Kitchens are considered high profit and low-risk ventures for food businesses

Low Investment

With a cloud kitchen business, you no longer will have to invest money in a dine-in space with high footfall, hence reducing real-estate cost as these kitchens can be set-up in remote areas. Thus, also reducing the cost of setting up a posh front-house and hiring a staff to cater to it. Setting up a cloud kitchen business model takes about 1/3rd of the market price that a traditional kitchen would.

Market Opportunity

The food delivery model, especially since Covid-19, has gained a lot of spotlights and with the convenience experienced through this, the cloud kitchen model will only grow, making it essential for you to create a cloud kitchen model for your own business to become part of the trend and decrease your investments.

Freedom to Experiment

The cloud kitchen concept also makes it easier for you to experiment with different brands and restaurants or models without much trouble. It’s easier than ever now to operate multiple brands from the cloud kitchen concept. In case a brand doesn’t do well, you can simply eliminate its operations and introduce something better suited to the customers’ needs. And you can even customize your different location menus according to the demands of the customers in those locations. This is one of the biggest benefits of cloud kitchens, even if one thing fails, you can always introduce something better in its place to satisfy demands and increase your profits as a result.

Freedom in Scaling

Another huge benefit of cloud kitchens is that it expands your scaling reach. E.g. if your restaurant operates from a particular location in the city, and you can’t have your food delivered outside this area, you can always collaborate with a cloud kitchen with branches across the city to expand your scaling area for delivering food. The cloud kitchen concept makes it extremely easy to scale and expand geographical reach for restaurants.

Hotpod’s Cloud Kitchen Model and its Profitable Benefits

Hotpod is the first managed cloud kitchen in Pakistan. With this model, restaurants have the opportunity to grow their businesses by collaborating with the Hotpod management directly to expand their delivery options while also have the quality of their delivery service improve among customers. The following are just some of the many benefits of collaborating with Hotpod’s managed kitchen model.

  • You get the opportunity to market your food business without having to spend a lot on marketing agencies, as Hotpod itself will be doing your marketing for you by making your recipes and adding them to their menu with your brand’s name.
  • You won’t need to spend too much on a dine-in space as the managed kitchen model of Hotpod will be taking care of the rented space.
  • Collaborating with Hotpod’s cloud kitchen concept will ensure your deliveries are done on time without making your customers unhappy with your service.
  • Hotpod has an effective and growth-oriented managed kitchen model that allows scaling on a hyper-local level to meet the food and restaurant demands of customers.
  • Hotpod’s model will also ensure benefits by experimentation with food recipes. Not only will the cloud kitchen be able to deliver a restaurant’s food across the nation, where the restaurant may not even have access. It will also be able to collaborate with multiple small businesses, changing and customizing items according to customer demands, and leading to further business growth.

This is how the cloud kitchen concept, like that of Hotpod, is a high profit and low-risk venture for restaurants and various food brands across Pakistan as well as the world. There’s no doubt that food delivery is becoming the new norm in the food industry, and if you want to expand your business in this generation, you need to invest in the cloud kitchen concept to gain more recognition among competitors.

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