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Multi-Brand Cloud Kitchens – Why Should You be Investing in One? 

The restaurant industry, like many others, has seen a variety of changes as a result of the covid-19 pandemic. Going out to a public venue and eating in a room full of strangers is no longer appealing in the same way it once was. Additionally, a significant number of those employed in this industry have, no doubt, suffered due to the pandemic as well. The challenges, in particular, of the restaurant sector, are complex because it is characterized by a high proportion of fixed operating expenses, thus translating to a much higher risk of failure. 

So, what can be done to overcome these challenges?

Restaurants need to re-invent themselves! As the pandemic continues, the outside world changes minute by minute. As a result, restaurants will have to make a few adjustments. This is where multi-brand cloud kitchens can help. 

What Are Multi-Brand Cloud Kitchens?

Standalone cloud kitchens, which focused on a single cuisine, had a smaller customer base and lower profit margins. This led to many firms embracing the concept of multi-brand cloud kitchens to overcome menu fatigue, attract a bigger market, and enhance consumer frequency. 

A multi-brand cloud kitchen operates several brands under one parent company. The brands share a large kitchen area under one roof. Each brand is focused on a specific cuisine and is positioned to meet the needs of different customers. Since there is no front-of-house, multi-brand cloud kitchens have evolved to cater to multiple audiences, each operating as a separate brand.

One cloud kitchen company, for example, can run three brands, each specializing in American, Italian, and Mexican cuisines, from a single location. Customers may believe that these are separate brands with separate operations serving different cuisines. Low start-up and marketing expenditures are typically cited as the major game-changer because of its delivery-only format.

Multiple brands share the same resources in a multi-brand cloud kitchen setup, lowering operational costs. The complete operating cycle of all the brands is owned and managed by a single body, including overheads such as rent, power, and employee wages. Since the kitchens are shared between the brands, equipment and employees are shared as well. Orders are taken through third-party aggregators or directly through each brand’s own app/website.

Multi-brand cloud kitchens are more profitable to open than traditional restaurants or even standalone cloud kitchens since they have lower entry barriers and lower capital expenses. They are designed to appeal to a broader audience and have the ability to scale up from a single kitchen unit. Better business predictability comes from efficient resource usage, proper inventory levels, and tightly managed food costs.

Multi-Brand Cloud Kitchen

Benefits of Multi-Brand Cloud Kitchens

Based on changing client preferences, cloud kitchens have the capacity to adjust their procedures, ordering methods, and personnel scheduling. However, it has been found that the key to the success of a multi-brand cloud kitchen model is focusing on providing superior quality and a wide range of food options at reasonable prices to the bottom of the consumer pyramid. Let’s look at how multi-brand cloud kitchens are revolutionizing the delivery industry.

  • Utilization of Infrastructure and Resources

One of the most appealing features of multi-brand cloud kitchens is that all of the brands are housed in the same location. The same kitchen space is used by multi-brand cloud kitchens. The same culinary equipment, restaurant staff, and raw supplies are used by each brand that specializes in a distinct cuisine. Multi-brand cloud kitchens are highly cost-effective since more demand can be generated with the same resources. The overall cost of running the cloud kitchen is greatly reduced by utilizing the same resources.

  • Lower Costs

Customers in restaurants rate their overall experience based on a variety of factors such as ambiance, general service, food, meal presentation, and so on. In the cloud kitchen, the only point of impact is the delivery of high-quality food and packaging.

Multi-Brand Cloud Kitchens serve as a central hub for delivering orders. Since these are delivery-only eateries, the emphasis is on getting the food to customers quickly. Orders are fulfilled by a tightly integrated food delivery system, third-party delivery services, or internet food aggregators. However, the margins for standalone cloud kitchens selling through Online Food Aggregators are not very profitable. Multi-Brand cloud kitchens have more negotiating leverage with such aggregators, allowing them to strike more favorable deals.
They have a wider online presence with multiple brands. The delivery personnel can take a number of orders from several cloud kitchen brands and deliver them quickly. Delivery costs are also reduced for online aggregators.

  • Staff

One of the most major benefits of establishing a multi-brand dark kitchen is that there are no additional costs associated with hiring separate kitchen personnel. Food products for different brands can be simply prepared by the same team of chefs who prepare dishes for the existing brand. One may easily start operations with a small workforce focusing on food preparation and delivery and scale up as the order volume grows.

  • Improved Understanding of Customer Perception

Customers rarely order the same thing twice, making it challenging for a single brand to turn first-time buyers into repeat customers. Multiple brands, on the other hand, can meet a variety of customer needs. If a cloud kitchen has three brands, each serving breakfast, lunch, and dessert, it can entice the same client to order three distinct meals. Cloud kitchen brands can provide clients with limitless options and better value.

  • One Time Investment

The majority of traditional restaurant dynamics are unsustainable. Overhead costs, such as fixed costs, expensive rentals, and maintenance charges, necessitate large capital investments. Since the cloud kitchen business has no front-end activities, there is no capital risk. 

A one-time investment is all that’s required to streamline backend operations with the cloud kitchen concept. Their owners have a greater financial ability to spend inappropriate equipment, infrastructure, skilled personnel, and improved technology to ensure standardization. This also gives cloud kitchen restaurants more stability and allows them to focus on the niche they serve by delivering high-quality food and packaging.

  • Flexible Menu

Cloud kitchens enable restaurateurs to modify menu items and product mix more quickly than they could in a physical location, and the days of updating and reprinting traditional menus are long gone. It’s simple to swap out a menu item online for another alternative if you run out of a necessary element or realize that the margin on a particular dish isn’t high enough.

Summing Up

It has been found that the concept of cloud kitchens – also known as virtual kitchens, ghost kitchens, and delivery-only restaurants – has disrupted the restaurant industry. Based on a report by Restaurant Industry & Market Evolution, 45% of foodservice operators plan to open a Cloud Kitchen or a delivery-only outlet.

Multi-Brand Cloud Kitchens have long been a leader in terms of innovation and adaptability. They are poised to revolutionize the delivery industry, thanks to their enormous client base, expanded menu selections, and improved profits. They are more efficient than traditional dine-in restaurants and can run multiple brands simultaneously, which a regular restaurant cannot do. 

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