cloud kitchen business model, Faasos (Rebel Foods) Business Model

cloud kitchen business model,  Faasos (Rebel Foods) Business Model


Cloud Kitchen Business Model In this digital age, everything is becoming
digitized and technologically advanced. The internet has become a faster source of
earning revenue. From clothes and shoes to gadgets and cosmetics,
everything is available for sale online. With the rapidly growing online business,
the market that is gaining momentum now is Food. The online food business has now gradually
transformed itself from traditional outlets to cloud kitchens. But what exactly is a cloud kitchen? A cloud kitchen is a virtual restaurant. You cannot physically go there and order food. You have to order online and the food will
be delivered to your home. There is no need for dining and no need to
take an exclusive place. Cloud Kitchen owners can take place anywhere
and deliver food at your doorstep. This means you can also deliver food even
by cooking at your home. It saves a lot of investment. There is no need for proper setup or an exclusive
furnishing and interiors. This reduces your operational costs. All you need is chefs and equipment to cook
food. Pros and cons are the following PROS Streamlined order process
Low operational cost Easy Expansion CONS No personal touch to build a customer relation
Limited brand presence compared to traditional outlets. over-dependence on digital marketing According to a recent survey, 67% of the restaurant
owners would want to open a cloud kitchen as their next outlet. One of the best examples of Cloud Kitchen
in India is Rebel Foods. Rebel Foods owns numerous companies including
Faasos, Oven Story, etc. ABOUT REBEL FOODS (Faasos) Faasos was launched in 2011 by Jaydeep Burman
and Kallol Banerjee in Pune. At that time the concept of cloud kitchen
was new and only a few people knew about it. Jaydeep Barman didn’t set out to create
a new food tech category. He was just tired of burgers and pizza. He was craving a more Indian take on fast
food. Jaydeep and his friend Kallol Banerjee had
built Faasos as a tech-friendly brand and were an early adopter of online ordering platforms. This gave them a front-row view on how technology
was reshaping the food services industry. The shift from a traditional fast food format
to a cloud kitchen business model changed the economics of the entire venture. The rent-to-sales ratio dropped from 15% to
4% over the next 2 years It took away the need to solve the #1 problem
of retail – finding great locations! Today, Faasos has 160+ kitchens that produce
delivery meals for four distinct brands. This includes Faasos, Behrouz, Oven Story
– a pizza brand, and Firangi Bake. This cloud kitchen business model is clever
because it showcases their separate brands as individually established. BRANds under rebel foods and TYPE OF SERVICE
offered FAASOS – Wraps and Rolls
Behrouz – Biryani Oven Story – Pizza
Firangi Bake – Italian Cuisine Mandarin Oak – Chinese Cuisine
Sweet Truth – Sweets and Confectionary Navarasam – South Indian Food
The Good Bowl – Bowls like Rajma-Rice Slay Everyday – Coffee & related items much
like a Café Coffee Day Lunch Box -Tiffin Service EXPANSION
Rebel Foods is expanding its presence within the country and in overseas markets. Their main focus is on UAE, Indonesia, Thailand,
and Vietnam. They also have taken a bigger kitchen and
have opened multiple kitchens within it to suit multiple brands. In one restaurant, various specialty restaurants
are functioning. They are working under one management which
reduces its cost. MARKETING STRATEGY OF FAASOS Faasos has an amazing marketing strategy. Faasos launched its mobile app in 2014. It is one of the first companies that took
orders on Twitter. People had to just tag Faasos and they could
order anything. Barman shares that the strategy fetched good
social media presence and new customers to the brand. Faasos is spending around Rs 400 – 500 for
acquiring new customers. Another special feature of Rebel Foods is
their amazing packaging. The type of packaging of all the verticals
of Rebel Foods is special and there is a special vision behind it. COMPETITION Their main competition is from Fresh Menu
which works in similar services. Fresh Menu provides offline and online services. You can go to a restaurant or order food online. HOW TO START A CLOUD KITCHEN? The following are some things that you will
have to keep in mind before starting a business. #1 Location
First, you need a place, a location where you will set up your cloud Kitchen. Suppose you rent a place at a monthly expense
of Rs. 10,000. It is also assumed that the company would
not achieve breakeven until five months. So you need at least Rs. 50,000 to pay the
rent. #2 Kitchen and Equipment’s
Rs. 2,50,000 is required for all the kitchen equipments like utensils, gas stove, etc. The cost also includes Power costs, Water
bills and machinery costs. #3 Licenses
You would need four licenses to start your business. This include-: FSSAI
This is a food security license that is compulsory for every business. GST
GST is Goods and Services Tax which is levied on online companies as well. Online businesses need to register themselves
under GST as part of the law. The people will be paying you online. FIRE SAFETY
A fire safety license is compulsory to acquire for every business. TRADE LICENSE
This license gives you permission to trade goods or services in the city. The cost of taking all the licenses can range
from 15,000- 20,000. #4 Staff
Suppose you are employing 2 staff members as chefs at a salary of Rest. 20,000 each. After multiplying with 5 you will know how
much you need to pay for the next 5 months. It is important for a cloud kitchen to have
good chefs who cook delicious food. This is because food is the only thing that
will build your reputation and bring the customers back. #5 Inventory Management Software
The point of sale software will cost you around Rs. 15000. Convenient software is required for easy calculations
and printing bills. #6 Working Capital
Initially, I assume that you would require Rs. 50,000. Working capital will keep your business running
when the company hasn’t received payments. #7 Marketing
In my opinion Rs. 1, 00,000 should be invested for marketing as it is the only thing that
will help in growing the business. It includes costs like: Online Customer Acquisition
Cost – Rs.40,000-Rs.1,55,000 In the beginning, it is important to acquire
online customers through advertisements and offers. Social Media
Cost – Rs.20,000-Rs.40,000 Social Media has become a force where you
can promote your brand widely at a lower cost. Today in the age of Facebook and Instagram
it has become important for a brand to have a great social media presence. Check out our Blog on Social Media Marketing Branding & Packaging
Cost – Rs.50,000-Rs.60,000 When your business depends entirely on delivery,
packaging can make it or break it. The packaging is one of the important things
that is being delivered to customers. #8 Delivery
The Business Model of a Cloud Kitchen is Hyper-Local Business. Hyper-Local Business means that you deliver
within the radius of up to 5-6 kilometers. You rent different outlets around the city
and deliver the food to the nearby areas. It means to create a cluster network of virtual
restaurants and spread. The Delivery Cost is estimated to Rs. 20-40
per order. MARKETING STRATEGY OF CLOUD KITCHEN
#1 Run advertisements on social media platforms like Facebook and Instagram. #2 Offer coupons and discounts #3 If you are thinking of opening an app then
use social media for advertising. SERVICES THAT SHOULD BE PROVIDED
#1 Elite Pass Elite Pass gives you some special services
and benefits which is different from normal. The customers can acquire an elite pass by
paying some amount. #2 Bolt feature
A Bolt feature means that if the company does not deliver food in a stipulated time then
the order will become free. PRECAUTIONS TO BE TAKEN WHILE PLANNING
#1 Disadvantages of third party discounts Often the orders increase due to third-party
discounts. This leads to buying more equipment and hiring
more people. When that discount gets over, the orders stop
and you are left with higher costs. #2 Food cost management
The company should take care of the food costs that is the actual cost of the ingredients
that go into a dish. As a standard, your food costs should range
between 30-33%. #3 Food Safety
The Food Safety and Standards Association of India (FSSAI) has been quite visible in
the news ordering aggregators to de-list restaurants. They are taking measures to ensure a high
standard of food safety. The cloud kitchens should train the staff
according to these rules. if you like this video don’t forget to like
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About the Author: Oren Garnes

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