Cloud Kitchen! Cloud Kitchen! Cloud Kitchen! What is this Cloud Kitchen? We are hearing it quite often. Is it a good business model or not? If I’m very much interested in Food and I want to open my own restaurant Would the cloud kitchen be a good way for me? Today, we will talk about all this and with that, I’ll be talking about a business model i.e, Faasos Basically, we will be talking about Faasos’s parent company, Rebel foods. So, first of all we’ll talk about What does Cloud kitchen mean? Cloud Kitchen means a restaurant that doesn’t exist physically, you cannot go and get food from there you would be required to order the food online and they will deliver it to your house. Here, they do not require dine-in or any exclusive space in some mall They can open their outlet or kitchen anywhere and start selling food from there. You can also make food from your home and sell online, that would also be considered cloud kitchen model Here, so much investment is saved, you do not have to do any setup or interior decoration no work on flooring, or expensive cutlery sets. you only have to pay for the chef who would make the food and not even to the staff who serves the meal in a dine -in restaurant. Now, it’s good to listen to it, there is a co. called Rebel Foods that is executing it very nicely. Everyone would have heard about Faasos, there are other brands too Today, I’ll tell about all that in detail. How do they do all that? Together with that, I’ll ready a road map for you so that if you wanna open a cloud kitchen of your own what all you would be required to do and how much would be the cost? I’ll be also telling you about the marketing plan in the latter half of the video In 2011, this company was started Jaydeep Barman and Kallol Banerjee starts it in Pune Now, cloud kitchen is we see at that time wasn’t a big deal Not many people were aware about it and Faasos’s marketing is outstanding. I find it really nice. This was one of the first kitchens that used to take orders on Twitter. Now we’ll talk about funding. In 10 rounds they have raised 124.6 million $ I’ll show you the stats in which all rounds how much they have raised Recently how much they were funded, you can see all that. 1600 internet restaurants 205 cloud kitchens and with that, they operate in multiple cities currently. Now there were a lot of cloud kitchens I could have chosen any of them, why did I choose them? because in my eyes they are one of the best. I’m telling you why because they have expanded so greatly. Now, what do you wanna eat? They started with Faasos that serves roll after it was successful, they expanded and diversified in other things also You wanna eat biryani, they serve biryani Italian too, Pizza also and Chinese, South Indian as well Basically, if you wanna eat exclusive cuisine they have that too. They have worked on everything. It was so great to see their portfolio. Faasos, Behrouz, that sells biryani Biryani I don’t eat but when I researched I found out is very popular. Lunch Box in my office, I often order from Lunch Box Lunch Box is basically a tiffin type of thing they have Now if you wanna have lunch and didn’t bring it from home order from them, discounts are anyway going on You apply the discount coupon and get your lunch at cheaper rates around Rs.100. which includes tawa rotis. I would like to raise an issue if any company person is watching this video the tandoori naan or whatever you make Lachha parantha That lachha parantha isn’t good Till the time it is delivered, it becomes dry So in that you should do some improvisation maybe change the flour or something. This is my suggestion because I keep on ordering from you. I’m one of your regular customers. Oven Story is also theirs. The oven story sells pizza. Here also, recently I ordered a pizza and had some problem so I called and my problem was resolved at that moment. That means I liked their service too. Mandarin Oak is their Chinese restaurant from where you can order Chinese food Sweet Truth is their dessert one, from where you can get desserts. The good bowl is their exclusive thing where you get food in bowls. Firangi Bake is also theirs. I don’t know about you but I have often ordered from there I didn’t know it was theirs. Firangi Bake basically you will get Italian cuisine there, they sell only pizzas in their pizza chain. Here you get all the other Italian things Quesadilla, this kind of thing you get here. Navarasam is also theirs. The one that sells South Indian if you would have ordered. I have never ordered but seen their ad a lot of times in Zomato. Now, these days everything is going on in control so I’m not ordering a lot. There is another venture by the name Slay everyday basically it is a type of competition product to CCD. Basically, if you would be knowing CCD has started to come on Zomato as they have tied up with it. Now you would get CCD’s products on Zomato and all too. Now what specialty they have is that they have their own app and with that they also sell through Zomato, Swiggy, Food Panda. FoodPanda has shut now Food Panda is opening their own cloud kitchen, I told you so today I’m making a detailed video that is why. Before going ahead let us understand if you wanna open your own cloud kitchen what all are you required to do? They have opened so many restaurants in line and now they have become the the market leaders. Now, what you have to do? I have distributed the money in small amounts like what all you are required to have? Also, lump sum how much would be your cost? So, you add all this and it could be that the data I’m telling you might change. If I’m saying the rent is 10k so it could be that the place you are looking to open is not available at 10k rent. Interiors also you are also not getting if such is the the case you take the value that is there in your region. I’ll just tell you the sheet in which what all data you have to fill. The marketing budget I have decided if you do not have that much you can lower it. So basically you will get an idea if you wanna start this business how much capital would be required? Rent I’m considering to be 10,000. I’m assuming that till 5 months you won’t be able to break even. For 5 months we won’t be able to come in profit. So 5 months rent will go from our pocket that is 50,000. 2,50,000 Rs. I’m considering the equipment that is required to make food, all the appliances and gas equipment. In licensing you would be requiring four licenses one is your FSSAI the food license second is GST as you would be listing on Zomato and all and also would be accepting payments online. One is fire security and safety, is also required. and along with that, there is one MCD’s trade license which you would be required to have. Health Tarde license it is called. If you wanna do it yourself, on Youtube you can watch some videos. Someone would have made a video, after watching that you can apply for the license yourself or you can hire a person from outside and he would do that for you. 15-20k I’m approximately taking its cost. I’m taking an approximate as you do it yourself or get it done so the cost varies. It could be that you are watching this video now or maybe you could be watching it after two years of its being uploaded So whatever cost I’m assuming it can easily vary. The concept would remain the same. In staff, I’m assuming two people in the starting salaried at 20k and 15k. Both would make the food. many people would say what do you know man? People who make food takes salary of 8-10 k. No, it is not like that. I have researched on average how much salary does a person who makes good food takes? If we are making a cloud kitchen, our taste will only bring repetitive customers. Taste and price, I would say both. If the taste is good, he would come again and if he doesn’t like the taste he won’t come back. Now multiplying it with 5, you have to do the calculation and that much amount you would require. Besides that, you would require a software that is needed for the bills. Inventory management or I’ld say Point of Sale software. For that, the cost would be around 15k lump sum It depends upon you, if I talk about myself I would do it on Zoho Books as well that would cost around Rs.2500 or 2600 plus GST yearly I would work on that too but you have to see your ease as everyone has different skill levels. It could be that you do not manage yourself and ask the two staff, you have hired to take care of the counter as well. In starting I would recommend you should yourself sit and later you can automate these things when you have multiple verticals and would be getting a lot of orders Now you can hire a person specifically to manage the billing but these are required in later stages once we reach there we will do all that. Working capital I’m assuming to be Rs.50,000 for the ingredients and all as in the starting, you receive an order but money hasn’t come right? If we do through Zomato, Zomato is not giving us the money right away. No? So, we would be requiring some money in the form of working capital. So 50k I’m assuming the working capital to be it could be lesser than this as well but in the starting for our calculation, I’m taking this amount For marketing I’m spending 1 lakh rupees because I feel in this business marketing will only take you to the next level. In marketing, I’m also talking about packaging and all. The best thing about Faasos is that there packaging is also really nice. You feel so good seeing that only. Also, in all there verticals from I have ordered their packaging is no doubt outstanding. I mean you feel a vision behind all that. Now let’s talk about delivery if it is done through Zomato that there is no tension. If we have to deliver ourselves then this cloud kitchen business is basically a hyperlocal business Hyperlocal business means the place I’m sitting at, 5-km from that place only I’ll be able to deliver or 3-4km radius only. The second outlet I’ll open at some other place and there I’ll deliver like this, I’ll open multiple outlets and become popular in all those areas. Now, I saw a thing called Dunzo, which is a hyperlocal delivery startup and delivers in 10 Rs. I haven’t researched much about that So, soon I’ll research and make a video about that From that, we will get to know if you want to start a hyperlocal delivery system food or whatever like this, so you can register at Dunzo or I’ll be telling the alternatives as well First, let me do the research then only I’ll be able to tell if you are interested for a Dunzo video fill yes in the poll above. Now we have just talked about cost, let’s talk about what we will do in marketing. We’ll run social media ads in marketing like get this much discount after applying this coupon also as we talked we are doing hyperlocal marketing which basically means in a particular area we are targeting so in that area only we would run the ads and market our business in selected areas only. I would suggest Facebook and Instagram ads only there is no need to go on Google and god forbid you run search ads and videos ads aren’t required as well if you are running your first oitlet because in making that video you would incur cost more than it would take to run. Once you get some sales and have more outlets then you can go on to video ads In starting we have to put banners like this much % discount and close to your house, ORDER NOW or if you are planning to make an app which I don’t recommend in the starting but still you make then, app’s marketing also you would be able to do from here only Social media that is it. We’ll only handle social media and nothing else. Facebook and Instagram thats it. Do not run Linkedin ads too by any chance you would be ruined. Now lets come back to Rebel foods basically they are going international in different countries like Vietnam, Thailand, Indonesia, UAE The United Kingdom and many more. Firstly, they built this in India by the name Faasos and after that once they started getting profits they diversified in different cuisines and started selling different tastes. Now we have captured India we know, we can do and started expanding further One more thing about them that I really liked now what they have done I told you about a lot of brands They have bought a bigger kitchen and in that made a smaller kitchen in that for different brands. One chef is required to take care of the Chinese cuisine, that becomes the Chinese brand, one sees the pizza, that becomes the pizza brand now what happened in one restaurant only different restaurants are running, management would be one only Staff who would cook the food would be different So basically it would be a specialty restaurant at one place that would serve different brands. Such an outstanding thing no? Now, they would take it international as if someone has done business in India he would easily do it outside as the market in India is very dirty. People here order the food and if they do not like it, register a complaint and get their refund. Recently there was some incident with Amazon where you do something of 1k, apply some coupon and would get 1800 as cashback. I don’t know what was going on. In my class, some students did and earned a lot of money I’ll see if I find some screenshot many people created their Amazon’s fake id and ordered like hell. Two services I’ll talk about that I like and feel all the cloud kitchens should do one is an elite pass that they’ve made it is nothing but what Swiggy and Zomato are also doing. Now to become an elite member either you give 149 Rs. or order for more than 1800 Rs. If you do any of these things you will become an elite member of ours and once you become an elite member you will get a lot of benefits Now, why is the company taking 149 Rs. or making people elite members who are ordering for more than 1800 Rs. basically they want to give some benefits to their regular customers. If you have given 150 rs. to a company to get the elite membership So you would think that my delivery is free its there in Swiggy, if you pay a specific amount you would get free delivery so you think my delivery charges won’t be taken I’ll order from here Zomato would charge, Swiggy won’t if the price would be same also, still you’ll order from Swiggy as you have bought the membership and delivery charges won’t be charged from you. Another service I liked was Faasos bolt which is if they tell you to deliver food within 30 mins, they would and if they fail the food would be free upto 200 Rs. If we talk about big brands there is Faasos, Cure fit, Box8, Freshmenu So basically these are four of the biggest leaders who are working in this sector in India As I talked about in the FoodPanda video, there is Foodpanda, Swiggy, and Zomato coming up with their cloud kitchens. Oyo Rooms would be coming as well, Future group too So basically many big players would be coming in this. So in cloud kitchen, they would be seeing some potential that is why they are coming I would recommend if you have some talent in food or your mom makes Curry n Rice or anything immensely delicious Make a cloud kitchen and sell it on Zomato and all and tomorrow once you become huge you can sell it on your own app. If we talk about the competitors, there is FreshMenu which I found is doing something different They are running a restaurant other than cloud delivery they also deliver the food from their restaurant. that means there is no dine-in, it is take-away you either take away from the store or if you wanna order online, you’ll get the delivery. A little bit they are different that I like about them. Now Oyo rooms is planning to buy Freshmenu it could be they might acquire Freshmenu as they have to launch their cloud kitchens Now there setup is all ready, infrastructure and everything so take over that. I always beleive if you wanna enter a new sector and you have money and there is some business, acquiring it is a good option. Acquisition means you buy that company and keep it with yourself. If you acquire the full skillset would be yours. If I talk about Walmart, they wanted to come in e-commerce so they bought Flipkart, which is operational in India. In india, there is a kind of fight in the e-commerce sector So they bought that, all its operations and data and everything became theirs. So, this was a very detailed video about cloud kitchen. I hope you would have understood everything and must have learnt a lot of new things and shared this video. Like this video and do tell me how did you find the video in the comments and whatever questions were asked do start working on them from now on Ask your mom and tell how amazing Curry n Rice she makes there is no cost in the starting as all the utensils you already have. You only have to register on Swiggy and Zomato for which there is a one time cost that you have to pay along with the fees you have to pay to the government for FSSAI and GST, that is the only investment Rest the work starts. The work starts with such a small investment. So okay Bye Good Night! Goodbye! Good Morning! Good Afternoon whenever you are watching this video.