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These days, everything we share, watch, or read can all be found in the cloud. Cloud technology has transformed data exchange. It has become integral in every facet of society. Whether or not we’re aware of it, the cloud is where we order most of our food. 

At the height of the pandemic, many brick-and-mortar restaurants in the city were forced to shut down. The lack of a sustainable revenue stream was a top culprit. Many businesses in the F&B (Food & Beverage) industry welcomed the idea of setting up a cloud kitchen in Singapore.

The cloud kitchen concept seems like a relatively novel idea. But, many restaurants throughout the decades have built their business model around this concept. If you are in F&B and are interested in implementing the cloud kitchen model for your business, below is everything you need to know about it. 

1. What Is A Cloud Kitchen?

A cloud kitchen, also known as “ghost kitchen” or “virtual kitchen”, is a commercial kitchen dedicated to providing food. Cloud kitchens are responsible for providing necessary facilities and services for food businesses. These services and facilities will then be used in preparing menu items for delivery and takeout.

Compared to brick and mortar spaces, cloud kitchens enable food businesses to develop food items meant for delivery with very minimal overhead costs.

2. Benefits Of Setting Up A Cloud Kitchen In Singapore

Cloud kitchens don’t require food business owners to set up shop. Additionally, there are no front-of-house operations, and only limited physical real estate is required. Many entrepreneurs who want to venture into cloud kitchens find the model appealing. It’s low-cost and gives them a better opportunity to develop food their customers will love.

There are several ways that a cloud kitchen in Singapore can benefit you. Aside from the low overhead costs, you’ll also benefit from the following:

  • Better Delivery Efficiency
  • Gain Actionable Data To Adapt and Optimise Your Restaurant
  • Allows You To Run Restaurants On A Single Cloud Kitchen
  • Scale Your Business More Affordably
  • Low Risk Associated 

Better Delivery Efficiency

As the name suggests, cloud kitchens rely on cloud technology to provide services and products to customers. It offers better delivery efficiency by allowing customers to get food through an online ordering platform. Third-party food delivery apps play a significant role in ordering and serving food.

Additionally, cloud kitchens allow restaurants to advertise and market their products on social media. Social media marketing is the better option for a cloud kitchen, as it is easier on the budget than traditional advertising. 

Gain Actionable Data To Adapt and Optimise Your Restaurant

Everything is online when running a cloud kitchen. This makes it much easier for restaurateurs to produce and access real-time customer data than the traditional way. 

For example, restaurants used to rely on pen and paper to receive customer feedback. A cloud kitchen streamlines this process through the online food ordering platform. Customers will rate the delivery experience through a star classification or rating system. Businesses can use the data to tweak the quality of their food or improve their delivery service.

Here are some examples of insights that restaurants can get from a cloud kitchen model:

  • Food quality
  • Customer satisfaction
  • Delivery waiting times
  • Off-peak hours

Allows You To Run Restaurants On A Single Cloud Kitchen

The idea of setting up a restaurant in Singapore is already appealing. But what if we told you cloud kitchens could manage multiple restaurants simultaneously? 

One of the biggest pros of cloud kitchens is that it allows business owners to operate more than one restaurant or brand with different menus. All of these are done in a single kitchen set-up. You won’t have to worry about choosing a new location for your restaurant. 

In some cloud kitchen models, restaurateurs offer vacant spaces for other business owners to rent. Instead of building your kitchen from the ground up, you can consider leasing an already-existing one. 

Scale Your Business More Affordably

All restaurants, regardless of whether they are cloud kitchens, eventually have to scale. Scaling refers to developing your business to keep up with increased customer demand. When you scale, you have to do the following:

  • Plan
  • Get funding
  • Implement the right systems
  • Make your processes more efficient
  • Find the right partners

Considering the above factors, scaling a cloud kitchen is considerably more affordable. If you plan on opening a new virtual restaurant alongside others, you can do so easily. All you need is the right staff and ingredients to satisfy customers’ orders. If business owners share the kitchen with other restaurants, they may also save money by sharing equipment. 

Low Risk Associated 

Every business comes with risk, but having a cloud kitchen would lower your risk,  as it involves a relatively lower upfront cost. If you want to venture into the F&B industry, a cloud kitchen startup may be one of your best bets.

Cloud kitchens are low-risk investments because you don’t need to choose a prime location or space to set them up. Overall, this helps you reduce real estate costs. If unforeseen circumstances in the future force you to close up shop, you can much more easily overcome the loss of profit.

3. Drawbacks To Cloud Kitchens

Some food business owners are hesitant to open up a cloud kitchen for several reasons. The cloud kitchen concept may have benefits, but it also has disadvantages or cons. It’s best to weigh all these factors and considerations before starting your own cloud kitchen.

Here’s a list of some of the cons of cloud kitchens:

  • Confined To Online Visibility
  • Highly Dependent On Technology
  • Highly Competitive Industry
  • Lack Of Customer Interaction

Confined To Online Visibility

One of the drawbacks of having a cloud kitchen is that your visibility is confined to online platforms only. It may be more difficult to expand or reach a wider audience if your visibility is limited to your online presence.

For example, when people decide where to dine, they’ll often pass by different restaurants and check out different menus. If they find the food appealing, they’ll go inside the place and eat there. 

The above situation isn’t possible with a cloud kitchen. The absence of a physical building may be advantageous to the owner, but it also reduces their visibility to potential customers.

Highly Dependent On Technology

Everything in a cloud kitchen depends on technology. Customers order from a third-party platform, pay digitally and give feedback online. But what happens if the technology suddenly becomes unreliable? It could lead to serious losses and downtimes.

Additionally, cloud kitchens could encounter a cybersecurity breach. There’s a possibility that customer data can be lost or stolen, decreasing customer satisfaction and trust. 

Recent statistics show that more than 60% of the food delivery revenue in Singapore comes from the platform-to-consumer model. There’s no questioning that the cloud kitchen in Singapore has skyrocketed in popularity.

Cloud kitchens are highly lucrative. Tons of players are in the market, hoping to take advantage of the boom in cloud kitchen concepts. You may have difficulty making your products stand out from the rest of the competition. Also, it’s challenging to go up against other more established virtual restaurants in the market. 

Lack Of Customer Interaction

A significant part of a restaurant’s success is the customer experience. Brick-and-mortar places enable business owners to forge a relationship with their customers. If customers like the food, they can praise the manager or give their compliments to the chef. Likewise, should anyone have a poor experience, customers can air their concerns to the restaurant wait staff, who will find solutions to their problem.

In cloud kitchens, it’s near impossible for any of the above situations to happen due to a lack of customer interaction. The customer is presented with limited ways to connect with the restaurant in-person. Problem resolution is done through phone, email, or the ordering platform itself. 

In such cases, F&B businesses that have transitioned to the cloud kitchen model may have difficulty controlling their reputation. They are unable to create personalised experiences for the customers.

4. Things To Consider When Starting Your Cloud Kitchen

Starting a cloud kitchen can be a big business leap despite being a low-risk investment. You’ll need a restaurant SWOT analysis to identify opportunities and areas for improvement. You should also consider the following parameters before doing so: 

Finding A Location For Your Cloud Kitchen

A good location helps minimise your costs and offers better service for your customers. You may not have to plan for a dining area or a parking zone, but you’ll need to focus on other aspects. 

Your cloud kitchen should have a reliable supply of potable. The location must also be sanitised frequently to meet food hygiene standards. Additionally, if you offer a particular cuisine, set up your cloud kitchen in an area with high demand for it.

Having A Reliable Online Ordering Platform

After finalising the location, you’ll need to collaborate with a partner to set up your online ordering and delivery platforms. These delivery apps can accept and fulfil orders on your behalf.

Some companies charge a high commission fee per order for using their online ordering system. It’s best to conduct thorough research to choose a partner that can meet your cloud kitchen’s needs without going over the budget.

Addressing Staffing Needs

An efficient and well-compensated staff is critical to the success of any cloud restaurant. You’ll need a chef to help you come up with a Michelin Star-worthy menu and prepare the food.

On average, you’ll need a minimum of 5 employees to operate a cloud kitchen. At the very least, your team should include two helpers, one housekeeper, and two chefs.

Having A Good Billing Software 

Customers use online food delivery apps because they want food to be delivered to them quickly. The entire system depends on fast turnaround times when a customer places an order and receives it at their doorstep.

Using an online platform can be confusing, but if you find a suitable partner, you can ensure your billing system works up to par. Choose a system that can be customised according to your needs as much as possible. 


If you are thinking about starting your own cloud kitchen in Singapore, it’s best to understand some fundamentals. The cloud kitchen concept has revolutionised F&B in Singapore. 

The cloud kitchen concept may have started as a response against a wide-reaching global pandemic. However, it eventually blew up to be a lucrative investment. Cloud kitchens have since accounted for a considerable chunk of Singapore’s food delivery revenue. 

Want more information on cloud kitchens? NinjaOS can help. We offer some of the most comprehensive online food ordering solutions in Singapore. With our platforms, our clients can create new revenue streams and cater to a dedicated customer base.

Click here to try a free demo, or contact us for more information. We’ll be happy to address all your enquiries. 

Frequently Asked Questions About
Cloud Kitchen Singapore

How Much Does It Cost To Rent A Cloud Kitchen In Singapore?

You’ll need to rent physical space for a simple cloud kitchen. Expect to spend between 6 SGD to 18 SGD per square foot.

What Is The Difference Between Cloud Kitchens And Restaurants?

Cloud kitchens are delivery-online kitchens that entirely operate online. They don’t have dining areas for customers, as orders are received and fulfilled on delivery apps. Meanwhile, dine-in restaurants are brick-and-mortar spaces with their signature branding. 

What Is The Difference Between A Ghost Kitchen And A Cloud Kitchen?

Both cloud and ghost kitchens are restaurant concepts without the physical dining experience. They are solely for delivery or pickup.

Why Is It Called “Ghost Kitchens”?

Ghost kitchens are food preparation models that don’t include waiters, dining rooms, or parking lots. There’s no customer interaction, and public presence is non-existent.

*NinjaOS is a product of Jankosoft

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