Cloud kitchens—ghost kitchens or virtual kitchens—have emerged as game-changers in the food and beverage industry. Unlike traditional restaurant models, cloud kitchens offer no dine-in facility and rely entirely on online orders. Since they bypass the traditional dining experience, overhead costs are low and the potential for profits is high.
Experts estimate that the U.S. cloud kitchen market will generate a revenue of $104.3 billion by 2030. The demand for online food delivery is driving the market growth.
Launching a cloud kitchen business is easy, but achieving profitability within the first year is tough. It isn’t impossible, however. Here, we’ll share a few tips that will help you build a thriving, profitable cloud kitchen business in a year.
#1 List Your Cloud Kitchen on Third-Party Food Delivery Platform
The U.S. online food delivery market is anticipated to generate a whopping $68.6 billion by 2032. The growing preference for convenient and fast service is one of the market drivers.
You can get your slice of the cake if you list your cloud kitchen on third-party food delivery platforms. The most popular food delivery app in the U.S. is Uber Eats, with an estimated 131 million users. Get your virtual kitchen listed on it.
Caviar, Grubhub, and Postmates are other consumers’ favorite food ordering platforms. Enlist your ghost kitchen on these platforms, too. This will help you reach a broader audience, maximizing sales potential.
One significant benefit of listing your kitchen on these platforms is that you will appear on people’s screens at the right time—when they are hungry and searching for food.
Set up an attractive profile on all food delivery platforms and add high-quality images of all food items you offer. Write detailed, captivating menu descriptions to compel your audience to order from you. Research suggests that using descriptive words can increase sales by 27% compared to simpler ones.
#2 Optimize Your Menu
You might not know it, but your menu speaks volumes about your virtual kitchen.
Curate an intriguing menu that caters to dietary preferences, popular delivery trends, and local tastes. Include top-selling items like pizza margaritas on your menu, too. That will help you attract a wide range of diners to your cloud kitchen.
When optimizing the menu, consider factors like preparation time, ingredient cost, and unique offerings. Amp up your menu with signature dishes and unique items. About 73% of diners are more likely to go to a restaurant that serves new flavors. Moreover, 66% of consumers are willing to pay more for a meal with new flavors.
Also, keep your menu concise and easy to navigate. That way, you will avoid overwhelming customers with too many options.
Update your menu regularly to incorporate seasonal specials or limited-time offers. It will create a sense of urgency and encourage repeat business.
#3 Invest in a Website
Did you know that 62% of diners discover restaurants on Google? That’s according to the findings of PYMNTS.com.
Imagine how much profit you can make if your cloud kitchen appears on Google when your target audience is hungry and seeking food delivery. That would be more than you can imagine.
A website can help diners discover you on Google, so consider investing in one. Don’t hire a web developer, though, for they charge hundreds of dollars to build a website. Use AI tools instead. They neither take a lot of time nor charge a lot of money to design a website.
Your website will be up and running in as few as five minutes if you use AI-powered website tools to create it. While the website will be tailored to your unique needs, you can add finishing touches before you take it live.
When choosing an AI website builder, Hocoos advises business owners to go for those that offer everything from web hosting and custom domains to booking systems and blogs. Such a website builder will simplify the task of website creation.
#4 Focus on Customer Experience
Nothing can beat a great customer experience—remember that! A whopping 96% of consumers believe that customer service is an important component of brand loyalty. When given a positive customer experience, 72% of consumers are more likely to share their experience with six or more people.
To meet and exceed customer expectations, use fresh ingredients, perfect your recipes, and maintain hygiene standards. Also, make sure you deliver orders on time and offer your customers timely updates.
Engage with your customers through personalized communication, such as email. Offer loyalty programs or incentives, such as discounts or free items for repeat customers. An exceptional customer experience will not only retain customers but also turn them into advocates for your brand, driving long-term profitability.
In a nutshell, cloud kitchens require a minimum investment and offer great potential for profitability. If you manage your virtual kitchen strategically, you will earn huge profits. The strategies discussed here will position your cloud kitchen for success within a year. Hence, consider implementing them. Rest assured that you will thrive in the competitive food delivery landscape.
Ingrid Maldine is a business writer, editor and management consultant with extensive experience writing and consulting for both start-ups and long established companies. She has ten years management and leadership experience gained at BSkyB in London and Viva Travel Guides in Quito, Ecuador, giving her a depth of insight into innovation in international business. With an MBA from the University of Hull and many years of experience running her own business consultancy, Ingrid’s background allows her to connect with a diverse range of clients, including cutting edge technology and web-based start-ups but also multinationals in need of assistance. Ingrid has played a defining role in shaping organizational strategy for a wide range of different organizations, including for-profit, NGOs and charities. Ingrid has also served on the Board of Directors for the South American Explorers Club in Quito, Ecuador.
