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The Cloud Kitchen Business Model: A New Way to Profitably Run a Restaurant


The cloud kitchen also called ghost kitchen or dark kitchen. It's business model is a new way to run a restaurant. Unlike traditional brick-and-mortar restaurants, cloud kitchens are delivery-only kitchens that do not have a physical space for customers to dine-in. This business model has been growing in popularity over the past few years, and it has already transformed the foodservice industry in many ways. Here is everything you need to know about the cloud kitchen business model.


What is a Cloud Kitchen?


A cloud kitchen is a commercial kitchen space that is leased or rented by food businesses. These businesses prepare food for delivery only, and they do not have a physical space for customers to dine-in. Cloud kitchens are also often referred to as virtual restaurants, ghost kitchens, or dark kitchens.


The concept of the cloud kitchen originated in Asia, and it has been growing in popularity in recent years. The rise of food delivery apps like Uber Eats and Door Dash has made it easier than ever for customers to order food from their favourite restaurants without having to leave their homes. As a result, more and more restaurants are seeing the benefit of moving to a delivery-only model.


There are many advantages of running a cloud kitchen over a traditional brick-and-mortar restaurant. For one, cloud kitchens require less capital investment than traditional restaurants. They also have lower overhead costs since they do not need to pay for rent, utilities, or labour costs associated with serving customers on-site. In addition, cloud kitchens have the potential to reach a wider customer base than traditional restaurants since customers can order food from anywhere in the city (or even the world).





How Does the Cloud Kitchen Business Model Work?


The cloud kitchen business model works by allowing food businesses to lease or rent commercial kitchen modules from 3PE Build. We at 3PE Build typically provide all of the necessary equipment and supplies needed to run a professional kitchen, including ovens, stoves, dishwashing machines, grills etc.


In addition to providing the physical space and equipment needed to run a cloud kitchen, we can also provide training and assist the business for start-up companies that are new to the industry or for companies that want to expand their operations into new markets.


What Are the Benefits of Running a Cloud Kitchen?


There are many benefits of running a cloud kitchen over a traditional brick-and-mortar restaurant business. For one thing, cloud kitchens require less investment than traditional restaurants since they do not need to pay for rent or utilities. Additionally, cloud kitchens often have lower overhead costs since they do not need to pay for labour costs associated with serving customers on-site. In addition, cloud kitchens can reach a wider customer base than traditional restaurants since customers can order food from anywhere in the city (or even the world).


Another benefit of running a cloud kitchen is that it allows food businesses to test new menu items without incurring the high costs associated with opening a new restaurant location. This approach can be very helpful for start-ups that want to test their products in the market before making a large investment. Additionally, it can be helpful for established companies that want to expanded their menu offerings without incurring the high costs associated with opening new restaurant locations.




Brick & mortar traditional restaurant

Cloud Kitchens delivery restaurant

Capital investment

$1M - 2M

​$30K - $120K

Real estate cost

2000 ft High cost, high traffic area

200 - 400 ft

Staff required

20+ employees

1 - 4 employees

Time required to open

1 Location 52 weeks+

1 Location ~ approx. 6 weeks

Breakeven

6 Years, 10% profit on 1M run rate

Just under 4 months, you will break even with a 10% profit on a 1M run rate.



The cloud kitchen business model is quickly gaining popularity all over the world due its many advantages over traditional brick-and-mortar restaurants models. If you are thinking about starting your own restaurant business, then you should definitely consider leasing or renting commercial kitchen space from 3PE Build. By doing so, you will be able saved on capital investment and overhead costs while still being able reach a wide customer base through food delivery apps like Uber Eats and Door Dash. So contact us or go to www.3pebuild.com.au

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