The pandemic wasn't easy for the restaurant industry. Restaurateurs have realized they need to evolve to survive any uncertainty the future may hold.
The popularity of online shopping during the pandemic inspired many to adopt digital practices to their processes. It's why cloud kitchens have recently gained more traction among those in the restaurant industry.
Cloud kitchens, also called virtual or ghost kitchens, are co-working spaces for food businesses that focus solely on food delivery via third-party apps or eCommerce solutions without traditional dine-in services.
Despite restrictions easing, it's still a viable business model, as over 85% of consumers plan to continue online food ordering habits post-pandemic.
Curious about how to start a cloud kitchen? Keep reading. This article tackles fundamental steps to start and grow a successful cloud kitchen in the Philippines.
Setting Up Your Cloud Kitchen eCommerce Business
A cloud kitchen business is much easier to start than a traditional restaurant. Let the steps below be your recipe for your cloud kitchen business.
1. Choose your niche and concept
You have numerous food business ideas to explore. To narrow down your options, consider your target market. Are you catering to adventurous Gen Zers interested in Western dishes or working professionals who love Southeast Asian cuisine?
Choosing your niche and concept allows you to define the elements of your cloud kitchen business, including your brand and your competitors. It'll also help you narrow down what dishes to serve and the logistics of swiftly preparing and delivering them.
2. Obtain the appropriate legal documents
Cloud kitchen licenses and registrations are still evolving, given how nascent of a concept it is. That said, you will still need to register for a business permit with the right authorities, including the Department of Trade and Industry (DTI) and Bureau of Internal Revenue (BIR), to operate legitimately as a cloud kitchen
3. Find the right location and size for your kitchen needs
Optimize the location of your cloud kitchen to effectively cater to your target market's needs. However, location isn't the sole consideration. Ensure that the kitchen's infrastructure aligns with your menu by checking for the necessary equipment and appliances to efficiently prepare your meals.
Remember to factor in the spatial requirements, making certain that the kitchen size accommodates your operational needs without compromising efficiency. This comprehensive approach to both location and kitchen setup will contribute to the overall success of your cloud kitchen venture.
4. Create your online presence
Your online presence is critical for your cloud kitchen, especially since you don't have a physical location for customers to visit. Blog articles and video content are great food promotion ideas to attract customers through organic and paid searches.
Creating your own social media profile is already a big milestone for your cloud kitchen. However, your next challenge lies in effectively enhancing your kitchen’s reach and impact.
4 eCommerce Tips and Strategies for Cloud Kitchens
Since cloud kitchens live almost entirely online, you'll find many benefits following strategies from eCommerce playbooks to succeed in the restaurant industry with your business.
1. Build a professional website and app
Websites and apps have replaced traditional restaurants with cloud kitchens. You don't need web development expertise to create an attractive eCommerce site. Countless, easy-to-use online store builders can help you quickly set up your virtual storefront.
2. Optimize the online menu
Regardless of your offers, you must optimize it for an online audience. Awesome product descriptions and professionally shot food photos will make your brand irresistible.
When you're optimizing your online menu, it will help to also consider your possible profits by the price you set on your items. Use a return on investment calculator to price your products well.
3. Ask for reviews and feedback
Positive online reviews are key ingredients for your cloud kitchen business' success. They give credibility to your brand, attracting curious customers who’ll see how much others have liked your food. Positive reviews will also improve your search engine rankings, making your brand more discoverable.
Beyond that, customer reviews and feedback will guide you in improving your cloud kitchen business.
4. Encourage repeat orders
Retaining customer loyalty can significantly benefit your cloud kitchen business, as many business owners find it more cost-efficient to sell to existing customers than attract new ones. Therefore, consider creating a loyalty program as a strategic way to encourage customer retention.
These programs make it more likely for certain target audience members to buy from you again. Entice customers to sign up and stay by offering special discounts and promos. The initiative will develop your relationship with your customers, boosting their customer lifetime value.
You can use a customer loyalty platform to manage your white-label loyalty program. It simplifies tracking customer sign-ups and determining member rewards.
Ensure it All Pans Out
Cloud kitchens wouldn't even have been thought possible in the time before smartphones and the internet. It's especially easier with how eCommerce has become the new way people shop. Now, anyone can start their own cloud kitchen business.
Starting a cloud kitchen business in the Philippines can be rewarding in today's eCommerce era, especially with the help of RUSH's eCommerce platform. We'll help you easily establish your website and sales app through the RUSH eStore.
Book a demo with RUSH today to take a step closer to making your cloud kitchen business idea a reality.
