Top 5 Tips You Must Know Before You Start Your Cloud Kitchen Business.

February 8, 2022

Cloud kitchen restaurants are booming as the demand for food is growing. By 2026, cloud kitchens are expected to become an industry worth 2.63 Billion as per Reports and Data. If you’ve wanted to start your own cloud kitchen business and get into the hospitality industry, this is the best time. Here top five tips from our expert Harry Kosato that you should follow to succeed in the industry.

What’s A Cloud Kitchen Anyway?

A cloud kitchen, also known as a virtual kitchen, is a restaurant that has no physical outlets but instead delivers orders to your doorstep. Sushi and more, Ovenstory, Behrouz Biryani are all examples of cloud kitchens.

Cloud kitchen business

1. Cloud Businesses Are Not For The Faint Of Heart. Be Prepared For Setbacks.

98% of all cloud businesses close down by year 10 of their existence. The business may be capital-light, relatively speaking, but to succeed in the long term, one must have a lot of grit and determination. The regulations change from time to time, so you have to be agile and adapt according to the trends and regulations.

2. Adopt A Product-First Approach

In a cloud environment, the only consideration is your product. Adopt a product-first approach and ensure that your product is developed to suit the taste of a majority of your customers. Many cloud restaurants build strong brands but slack on their product, which is a lousy business strategy in the long term.

3. Operational Efficiency Is Paramount

Smooth operations help build better brand equity and contribute to improving profitability by reducing costs. Implement standardized delivery operations and optimize deliveries to ensure greater efficiency. You should also automate post-order communications as well as in-kitchen operations using cloud kitchen management software. 

Cloud kitchen business

4. Always Have A Success Deadline.

A lot of entrepreneurs keep pushing and pushing without having a success deadline in place. Don’t be that person! Always have a deadline in place and ensure that you don’t get emotionally attached to your venture. A good restaurant owner understands the importance of changing with the environment and is prepared to pivot to suit their diners and customers’ demands.

5. Be Prepared To Fund Your Business For The Long Run

A sustainable cloud restaurant brand takes about ten years, on average, to build recognition and credibility. Be prepared to fund your business for the long term.

Learn how to start and build your own successful cloud kitchen business from Harry Kosato, founder of Sushi and More, India’s first chain of sushi outlets. He also launched Virgin and Dyson in Japan as Head of Marketing. Book his live workshop today!

About The Expert

Harry Kosato

Harry Kosato

Parallel entrepreneur, social psychologist, and sushi curator

Harry-san LSE and Oxford-educated, has launched Virgin and Dyson in Japan as Head of Marketing, but he started out as a qualified international tax expert. Now he wears many hats and runs projects as diverse as Sushi and More (India’s first chain of sushi outlets) and to Me For the World (a social impact project)

He holds a Guinness Book of World Record, awarded a Good Design Award, but can’t drive a car. He’s studying at the SBS Swiss Business School in Zurich for a doctorate.

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