A Closeup Look on the Next Big Thing
Every industry adapts itself to the newly emerging situations, needs and trends. Especially with reference to the F&B industry, the recent innovations surely seem to have some significant importance for the growth and progress of the industry altogether. Like Facebook for social media and UPI for the banking sector, cloud kitchen could possibly be our “IT factor” for F&B business.
What is a cloud kitchen and how does it work? Let’s take a deep dive in.
Cloud kitchen is a novel concept where a commercial kitchen is used to prepare food just for delivery or takeout or both. In simpler terms, Cloud Kitchen refers to a restaurant space with no dine-in option. Cloud kitchen enables the growing F&B business to expand their wings beyond their limited physical space enabling them to establish themselves as a virtual brand with their own identity at minimal expenditure.
The concept of cloud kitchen became very significant post COVID-19 era, as there were difficulties in social gatherings and a change in dining behaviour was needed. The demand for food delivery also increased due to the social distancing protocols and medical conditions of the pandemic. This paved the way for the people to consider cloud kitchen as an ideal solution and also encouraged a lot of new entrepreneurs with the dream of owning a restaurant to begin with. Now it’s widely seen as a common trend across several surveys that almost 67% of the restaurant owners most likely would prefer cloud kitchen over conventional dine-out places. This could possibly be THE NEXT BIG PARADIGM SHIFT in the restaurant industry.
There are strong reasons for people to consider investing in this. Cloud kitchen comes with a lot of benefits and advantages. The biggest boon of cloud kitchen is the fact that it cuts the cost for the physical space, the decorations and ambiance that need to be set to make it presentable and attractive. This also cuts the staff and utensil expenses and reduces a huge chunk of money spent on electricity. Cloud kitchen also have wide demographics compared to just physical dine outs, thus more possible customers. Cloud kitchen menus could be minimal and flexible than running an actual restaurant with dine-ins. Precisely, cloud kitchen demands low financial investment and gives us scope for huge profit margin (the single person average order value digitally is estimated to be around 250 to 400 post pandemic).
However, there might be certain challenges one might face in running a cloud kitchen successfully. Improper structure and lack of tech management might lead to the loss of customers. Lack of customer interaction and lack of accessibility to proper digital marketing tools might complicate things even more. Dependency on food aggregators is one of the major crises one may come across while establishing a cloud kitchen outlet.
Magilhub offers a one stop solution for all the challenges mentioned above. Its POS solutions help with easy order management. Magilhub provides the partnering cloud kitchen brands with great digital visibility and enables them to reach their targeted customers. Magilhub POS is an effective alternative which allows the cloud kitchen startups to own their customer data themselves, guides them in analyzing those, facilitating various strategies based on the findings. Thus, with Magilhub by your side and with the right amount of passion for entrepreneurship, the concept of cloud kitchen isn’t a farfetched business idea, after all.
For more information about Magilhub, visit: www.magilhub.com
MAGHIL 