Cloud Kitchen Concept – Pros and Cons
Everything in this world comes with pros and cons, and so does the cloud kitchen. If you are continuously struggling between getting a cloud kitchen or not, then we are here to make your decision easier for you. We have conducted research on cloud kitchens in order to find out all the merits and demerits of the cloud kitchen.
Before beginning with the pros and cons, it is very important for you to first understand what exactly a cloud kitchen is. A cloud kitchen is a restaurant delivery service software or commercially licensed area, where food production is done. Usually, the role of a cloud kitchen is to get the order to the restaurants.
Pros of cloud kitchen
Let us first highlight and give you all the reasons why you should consider the cloud kitchen as an option.
Low operational cost
One of the biggest benefits of having a cloud kitchen is that it reduces the operational cost, which could be the labor cost or the rent of a restaurant. As both of these take up a high portion of your revenue when these two would be eliminated, your profit margins increases.
Low risk associated
Every business comes with risk, but having a cloud kitchen would lower your risk, as it has a relatively lower upfront cost involved. You could try out your initial idea with a cloud kitchen without having to worry about the risk.
Resistance to competitive pricing
Competitive pricing makes it difficult for many businesses to survive but having a cloud kitchen reduces the cost, which makes it easier to play on competitive pricing.
As cloud kitchen is solely based online; therefore advertising on social media is the best option along with being easy on the budget, as it is cheaper compared to traditional advertising.
Cons of cloud kitchen
After reading all the pros of cloud kitchen, it is very important you also know the negative side of it, so that you could have a bird-eye view of the complete situation before you make any decision. Also, it is important for you to be prepared for all the possible challenges that you might face.
Confined to online visibility
One of the drawbacks of having a cloud kitchen is that your visibility is confined to online platforms only. Many times, people see a restaurant passing by and then try that restaurant or people see the pictures of an alluring restaurant and then visit it. This is something that you could not get in a cloud kitchen.
Highly dependent on technology
As per our opinion, the major drawback of having a cloud kitchen is that you would be highly dependent upon technology. There is always a risk associated that your portal might be hacked or misused, which could lead to serious losses.
Getting your food delivered through restaurant delivery service software might sound to be an easy task when you are a customer, but it involves a lot of thinking before switching to this option.