Virtual Kitchen Business
Start your own Cloud Kitechen
Overview Nowadays, every restaurant business, whether new or established choose to build Cloud Kitchens. As, customers, instead of wanting to Dine in at Hotels or Restaurants, tend to prefer ordering food at home. Therefore, the ambit of Virtual Kitchen Business in India has also considerably increased.Virtual or cloud kitchens are only food delivery platforms. These kitchens carry out the operations within the premises of a restaurant and do not have a sitting place and takeaways. Ghost or Dark Kitchens are also the names of these food delivery businesses.In this blog, we will discuss the concept of Cloud Kitchen and what are the benefits of these kitchen spaces.
Due to COVID-19 epidemic, this Food Business Model is gaining a lot of opportunities in both the Indian and International market.
Reason - One
Reason - two
A regular Restaurant Business includes tough competition in terms of space, high rentals and escalating costs;
Due to the norms of Social Distancing, the sales of restaurants have reduced a lot.
Legal License required to start a Cloud Kitchen Business in India FSSAI License: For starting a virtual kitchen business, it is necessary to obtain a food safety license from FSSAI. This license remains valid for a minimum of one year and a maximum of five years. The main reason to acquire this license is to ensure food quality and safety.
GST Registration Acquiring GST registration is compulsory for all the cloud kitchens operating in India. After registering, a GSTIN (Goods and Service Tax Identification Number) will be provided to each food vendor.
Trade License: All the businesses operating in India needs to get a Trade License from the Municipal Office
Trademark Registration A Trademark Registration will assist a food business in lifting its brand name in the market. Every business owner must apply for this registration to protect its watermark, patterns, logo, and name.
Fire and Safety License: Normally, obtaining this license is not mandatory for a virtual kitchen operating in India. However, it is always suggested to acquire a Fire NOC for saving yourself from the future calamities.
Eating House License Eating House License is one of the mandatory licenses for starting a virtual kitchen business in India. Licensing Police Commissioner of the respective city is responsible for issuing this License.
Shop and Establishmen t License An owner needs to obtain Shop and Establishment License within 30 days from starting a food business. One can acquire this license either by visiting the government portal or by
Environme ntal Clearance Certificate Obtaining ECC is a must for ensuring that the food business is not causing any negative or harmful impact on the environment.
BENEFITS OF RUNNING A VIRTUAL FOOD BUSINESS IN INDIA
Low capital Expenditure: A virtual kitchen deals with the concept of online ordering and delivery. It does not involve sitting space and takeaway facilities. Therefore, it incurs low capital expenditure than any other outlet in the restaurant High-Profit Margins: A cloud industry. kitchen includes low overhead cost in terms of electricity and water bills. Moreover, the operation with fewer people and smaller set-up tends to increase the profit margins. Efficient Service: A cloud kitchen involves low cost and is easy to operate. That means the owner of these kitchens can start its business in various places to serve customers effectively and quickly.
TYPES OF CLOUD KITCHEN BUSINESS • Fresh Menu Business Model MODELS • Independent Cloud Kitchen Model • Swiggy Access Business Model • Zomato Kitchen Business Model • Faasos or Rebel Food Business Model
LATEST UPDATES ON VIRTUAL KITCHEN BUSINESS In India, the Online Food Delivery Market is expected to reach the following figures by 2024:CAGR (Compound Annual Growth Rate) of 30.55 % ( Revenue Based);10.9 % ( on the basis of the number of users);Revenue up to Rs 1334.99 Billion;User Base up to Rs 300.7 Million.
Conclusion Nowadays, the size of the food does not matter, as customers are only concerned about the ease and the food quality. Therefore, starting a Virtual Kitchen Business in India is a perfect choice for the budding food business owners. This format not only guarantees you high-profit margins but also involves less capital, fixed and marketing cost. Further, as per the recent report, India is expected to become a hub for online food market by the year 2024. Moreover, due to COVID-19 epidemic [3] , restaurants have started converting themselves into a virtual or cloud Kitchen. At Swarit Advisors, our team of experts would assist as well as guide in obtaining all the mandatory permits. The mandatory permit includes FSSAI license, GST Registration, and Eating House License, etc.
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