Cloud Kitchen Business Models You Should Know
Cloud Kitchen/Virtual Kitchen has been all the craze. The messages I’m also getting point to that interest. But virtual kitchens have transformed slightly ever since they started. Before, it was simple and only revolved around a food brand preparing food in a kitchen and using a food delivery app like Uber Eats, DoorDash, or Grubhub to deliver the food to the customer. This independent model is still the most popular, but new business models have spawned to bring more flexibility or experimentation to cloud kitchens.
For example, the Multi-Brand Cloud Kitchen model brings the advantage of creating multiple food brands under one kitchen and experimenting to see which makes for a better product fit. Rebel Foods in India does this incredibly well by using data to inform the brands they’ll create to bring to neighborhoods.
Regardless of which business model you eventually gravitate to, you want to consider factors like ambition, stress, and risk before you choose the right one.
These kitchens focus primarily on delivery with no dine-in facility.
| Business Model | Description | Example |
|---|---|---|
| Single Brand Cloud Kitchen | A single restaurant or brand operates a kitchen focused solely on delivery without a physical dine-in space. | A local pizza place that only takes online orders and delivers without offering any seating. |
| Multi-brand Cloud Kitchen | A single operator runs multiple brands or cuisines out of one kitchen. Each brand operates online as a separate entity but shares kitchen space and resources. | Cloud kitchens are integrated with advanced tech solutions for operations, order management, inventory management, and data analytics. |
| Aggregator Model | A third-party company provides kitchen space to various F&B brands. These brands rent the space and operate independently. | They shared kitchen spaces where different brands could book time slots per their needs. |
| Franchise Model | Existing brands license their name and menu to operators in a cloud kitchen setup. The franchisor provides the brand and support; the franchisee manages operations. | A famous local restaurant brand allows an operator in another city to use its branding and menu. |
| Incubator/Accelerator Model | A company provides kitchen space, resources, and mentorship to budding chefs or food entrepreneurs, possibly in exchange for sales percentage or equity. | A large kitchen facility allows different food entrepreneurs to book specific hours or stations. |
| Hybrid Model | Combines the cloud kitchen with a traditional dine-in space. While focused on delivery, there’s a small area for dine-in or takeout. | A restaurant with a significant portion for delivery operations and a smaller area for walk-in customers. |
| Co-working Kitchen Model | Cloud kitchens are integrated with advanced tech solutions for operations, order management, inventory management, and data analytics. | They shared kitchen spaces where different brands could book time slots per their needs. |
| Integrated Tech Model | Cloud kitchens integrated with advanced tech solutions for operations, order management, inventory management, and data analytics. | A cloud kitchen using AI to predict order volumes, optimize inventory, and streamline the cooking process. |
This table provides a structured overview of cloud kitchen business models, descriptions, and examples.