As the F&B industry continues to fight to stay afloat as a result of the global pandemic, these past years have seen a surge of ghost kitchens across India. The decrease in in-restaurant dining and rise in food delivery business is the new norm, and many business owners are jumping on the bandwagon.
The main benefit of ghost kitchen spaces is the cost-efficient, low-risk, streamlined business model that they offer. F&B business owners can capitalise on the food delivery boom without incurring the high upfront costs and handling the time-consuming logistics that would otherwise be required. That said, it’s important to differentiate between the different types of ghost kitchens and understand what solution suits your business best.
Ghost kitchens, or CloudKitchens® delivery kitchen, are essentially streamlined, ready-to-go kitchen spaces that operate to provide food for delivery. There is no dine-in space and they typically rely on third-party food delivery services—like Zomato, Swiggy and Amazon Food—to get orders delivered to their customers. By renting a smaller space and cutting down on staff needs, ghost kitchen owners minimise their costs and can focus on what they do best: providing delicious food without sacrificing quality.
That’s the beauty of working with ghost kitchen operators like KitchenPlus in India. We offer F&B brands a range of turnkey kitchen space solutions with the built-in infrastructure needed for success, including the latest technology to optimise your business processes, marketing support to help your brand grow, and more.
To help you figure out which ghost kitchen space works best for you, we’ve outlined the main types of CloudKitchens® delivery kitchens available and brands that have capitalised in each area.
If you’re a local entrepreneur or an F&B startup owner, our ghost kitchen spaces are an ideal solution to get your business up and running with minimal cost and effort. As upfront costs and operational expenses are much lower and the time required to launch is much less, entrepreneurs have more flexibility to test and experiment with the best strategies for long-term business success.
Consider that opening a traditional restaurant in India requires an average investment of ₹2.5 Crore. In contrast, the initial investment to start a ghost kitchen is ₹10 lakhs, a massive cost difference. Plus, growth and profitability move much quicker with ghost kitchen spaces. Most take only 6 weeks to break, while most traditional eateries take 48 weeks.
Balla King is an example of a notable local Indian startup that has used our ghost kitchen space model in this way to enter the marketplace.
If you run a home-based cooking or baking products brand—which faces its own unique set of business operation requirements— getting started with a ghost kitchen space is a smart choice.
The list of strict food safety regulations that home-based food businesses must adhere to is lengthy, even more so with COVID-imposed restrictions. Challenges include imposing appointment-only collection, contactless delivery and no-cash payments, and not being able to recruit employees, among others.
Alternatively, ghost kitchens can step in and make this process much easier and hassle-free. Our spaces offer built-in streamlined processes and can be a stepping stone to achieving your own fully operational F&B business. For home-based food brands looking to get a foot in the door, having a professional helping hand is a huge benefit.
The main benefit ghost kitchen spaces provide national restaurant chains is the ability to grow quickly and expand into different cities without breaking the bank. Expansion into new markets in India typically means incurring high upfront costs and high risk because of the uncertainty that the new venture will succeed, no matter how many locations the chain may have.
All of our ghost kitchen spaces are strategically located in highly populated areas with a thriving consumer base, which greatly mitigates the risk. Plus, with fewer upfront costs and greatly reduced operational fees, expansion is much more affordable.
Mamagoto is an example of a national chain that KitchenPlus works with to support its expansion efforts.
Regional and international chains
Regional and international food chains also benefit greatly from the low-cost, rapid expansion opportunities that ghost kitchen spaces provide. Because Our KitchenPlus team handles all of the time-consuming and costly logistics—like installation, securing permits, insurance, and so on—companies can enter India quickly without worrying about all of the legislation and setup.
As more and more traditional dining restaurants struggle under strict COVID restrictions, having a seamless, turnkey solution becomes even more valuable for F&B businesses looking to enter the Indian market.
If your business specialises in cold/dessert food products, ghost kitchen spaces offer a unique solution to serve your needs. For these types of brands, the primary function of a ghost kitchen space is to serve as a storage location—which is paid at a minimal cost—while allowing your brand to gain a more significant market share and expand your virtual brand.
Our ghost kitchens also provide business solutions for KIV (keep in view) kitchens that use our ghost kitchen spaces for food storage. It’s an easy, hassle-free process because all KitchenPlus kitchen spaces are equipped with storage equipment and set up with all necessary food licenses.
If this is the solution you need, rest assured that you can store and instantly transport any ingredients or food products when needed while our team takes care of all of the backend logistics like insurance, maintenance, and more.
Are you interested in starting your own F&B business using one of our CloudKitchens® delivery kitchen spaces in India? If so, please fill in the form below so our team of experts can help you get started.