The restaurant industry is always changing its phases depending on recent trends. In recent days, ghost kitchens are the hot chips in the market and among stakeholders. If you are directly involved in this market, then you have to invest a few minutes to explore it furthermore deeply.
Doing this can deliver clear ideology in the cloud kitchen business model, online food delivery software, and how these two elements are interconnected, etc. Let’s understand what a ghost kitchen is first.
What is Ghost Kitchen?
A cloud kitchen is simply a commercial kitchen with all basic and advanced utilities for cooking food. Usually, such kitchens can be identified as a restaurant without dining facilities. That means the cooked foods are only for takeaway and delivery.
If a consumer wants to consume the food prepared in the cloud kitchen, then he/ she must buy and bring it to their home. So, often the cloud kitchen is called a virtual restaurant. Other than this, this setup has been utilized by the restaurant chain to cook their recipes to fasten the delivery process.
For example, the cloud kitchen has been utilized as a dark store or micro fulfillments of the eCommerce industry.
By having many cloud kitchens at the location where a restaurant gets more online food orders, it can supply its customers faster than ever. That’s why it also has another name, “Ghost Kitchen”. Let's understand it better by analyzing its business model.
Understanding Cloud Kitchen Business Model
A strategic plan that describes how a business operates and delivers values to make money is called a “Business model”. To understand a business model better and easier, you can go through the elements of its business canvas. Here is the list and description for each element of the cloud kitchen business.
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Key Partners
- Groups, individuals, and other third-party companies/ resources who work with your business to develop values and strategic relationships can be known as key partners. For the ghost kitchen, delivery persons, chefs, and other staff are the important key partners.
Key Activities
The actions that are done by a cloud kitchen to operate the business successfully and earn money through it, are called key activities.Key Resources
Simply, it can be defined as the owned or leased property or sources of restaurants that can be utilized by it to support the money-yielding process can be called as key resources. Food delivery management software is the best example of this.Value Propositions
It is nothing but the values you make for your customers through key activities by using key resources. Through this process, you can establish a valid reason why the customers choose your restaurant business.Customer Relationship
This term denotes the types of relationship-building methods with each customer segment. Online food ordering applications provide multiple options to connect with customers.Channel
It can also be known as “Touchpoint” which directly communicates, interacts, and delivers content to the customers. An online food ordering platform can also be used as an effective channel for ghost kitchen businesses.-
Customer Segments
- Grouping customers based on their region, age, gender, and other factors to know their needs better and cover them with personalized service and offer is known as the customer segments.
Revenue Stream
It represents the methods of money earring through your business. Online food ordering fees and profit for each food product will be the main revenue stream of the ghost kitchen.Cost Structure
The part containing all the details of the expenditure is known as the cost structure. The cost to avail of online food delivery software, staff, delivery person, chef, and other infrastructure are the main cost structure of the cloud kitchen business model.
Through this, you may get a clear idea of the cloud kitchen. Simply, it distributes foods to the customers, on-their demand over the internet or physically.
But, why is food delivery software an important part of the cloud kitchen business model? The answer to this question is revealed in the next part.
Is Food Delivery Software Essential for Ghost Kitchen Business?
The world has taken the restaurant industry to the next level and provided tech solutions to automate business operations and ordering systems. So, as a participant in the industry, you should also adopt such advancements to satisfy and attract your customers.
Many people already use the online food ordering system to get food at their doorstep. Moreover, new users are switching to the culture.
**As per the recent report from Statista, the number of customers who use online food delivery systems will be 2,613.2 million by 2027.
In the present year (2022) the user penetration in the online food delivery segment is calculated as 23.7%. **
At the same time for a typical restaurant, people can consume their food through the dining facility. But for a cloud kitchen. The takeaway is the only primary source of income. So, when you adopt such food ordering software, you can maximize the profitability limit in your cloud kitchen business. Doing this can aid you to get more passive revenue from your ghost kitchen business.
For instance, you can get more income by showing ads in your food ordering software interface.
Cross-selling and up-selling strategies can also be executed with this food delivery management software for restaurants).
In-app marketing campaigns like offers, deals, coupon codes, and others can be run through this food ordering software. Through the coupon code, you can drive 67% of new customers easily.
Referral programs and other loyalty programs can also be run and managed with this software. All these will be helpful to seek the attention of customers instantly.
Alongside, you do not need to have a dedicated delivery team to do door delivery. Instead, you can aggregate interested and eligible individuals as delivery persons for your cloud kitchen with this online food delivery software.
The software usually contains four elements; customer app, hotel app, delivery person app, and admin panel. As it has the same workflow as UberEats, you can choose a clone app script instead of developing a new food ordering software.
This can reduce the cost of app development drastically. So, if you are preparing to establish a startup, then it is the best legal solution you can get.
But spend some time choosing the best app development company to get such UberEats clone scripts. So that you can avail of the customized script that can ensure uniqueness in the interface and workflow.
To Wrap It All Up
By integrating food delivery management software with your ghost kitchen business, you can automate the food ordering and delivery process easily. At the same time, it can maximize your profitability and productivity.
Instead of developing food ordering software for your cloud kitchen from scratch, you can choose an UberEats clone script. It’s cost-effective, productive, and credible when it is crafted by an eminent clone app script provider.
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