September 24, 2021

How The CloudKitchens™ Model Is Helping Struggling Restaurants Turn Profitable Again


Few countries were prepared for the pandemic. Among the hardest-hit industries was the F&B sector. From the onset, many restaurants found themselves unable to adapt to the new circumstances they found themselves in. It is estimated that 12,000 restaurants in Australia may never see the chance to open their doors again.

Even for the restaurants that survived the pandemic, restaurateurs in Australia are continually plagued with other issues, like that of rising food costs, as well as the increasing labour cost, reducing the amount of profit restaurateurs are able to make. Times like these have forced restaurant owners to look for innovative ways of keeping their business alive. Thanks to innovation in the F&B industry, delivery-only restaurants have become a viable alternative for businesses looking to thrive in this new F&B landscape.

Here’s how the CloudKitchens™ model helps F&B establishments thrive: 

  1. Reduced operational costs 
  2. Taking advantage of the growing food delivery market 
  3. Low risk, high reward 
  4. Launch your business in a few weeks 
  5. Affordable expansion into new geographical areas 
  6. Making informed decisions using the latest technologies 
  7. Capitalising on the success of third-party food delivery platforms 

#1 – Reduced operational costs


Restaurants are not easy business models to operate. With tight profit margins, operating a traditional restaurant is not for everyone. Additionally, upfront costs going as high as $650,000 AUD make it nearly impossible for chains to expand their operations and grow past a single location.

With significantly reduced upfront and operational costs, the CloudKitchens™ business model offers restaurant owners an exciting opportunity to expand their operations beyond their traditional forms.

#2 – Take advantage of the growing online food delivery market


The online food delivery industry has blown up over the past few years. Even before the pandemic, the market was already growing rapidly and providing a promising opportunity for businesses to try new methods of reaching customers.

CloudKitchens™ are purpose-built to help restaurant businesses settle into this new model. By helping businesses run a highly efficient delivery-centric kitchen, they help restaurants get a step ahead of their competitors in a highly promising industry.

#3 – Low risk, high reward


By working with a CloudKitchens™ operator like Chef Collective, you are freeing yourself from the shackles of long-term commitment. With a traditional restaurant, you might be hesitant to leave a location after investing copious amounts of time and resources into the location’s renovations and fitting. 

Some businesses, after months – or even years – of making no money, will eventually have to make that difficult call to end the operations and shut the location down. Such was the nature of the brick-and-mortar F&B industry – that even the most successful restaurant chains close down venues from time to time. 

With CloudKitchens™, the need for a well decorated and designed front of house space is eliminated. Should you decide to end your operations or move to another location, you can do so by simply ending your lease. The operator will be able to find a new restaurant tenant to take up the space. 

This in way, CloudKitchens™ offer a low commitment method of operations – with a lot less risks associated, but still the same opportunity for success. 

#4 – Launch your business in a few weeks

Our CloudKitchens™ model offers an immediate solution to your ambitions to expand, or even kickstart your first food business. For a traditional restaurant, logistical, bureaucratic, and planning issues, may mean expansion is a long-term affair. You’d typically have to organise real estate renovation, furnishing, hiring, and more, taking months – or even years.  However, in the CloudKitchens™ model, these factors are taken care of for you. Scaling your restaurant takes just weeks. 

Operators like Chef Collective will also help with operational permits and licences, as well as facility safety and maintenance, further simplifying the process for you.

#5 – Affordable expansion into new geographical areas


The geographical location of your restaurant is a significant factor in its success. Just like how traditional restaurants look for areas known for restaurants, or streets with high foot traffic; delivery-focused restaurants and CloudKitchens™ want to be situated near residential areas and people who frequently order online. Other factors to consider include the type of cuisine offered, customer demographics, and preferences.

CloudKitchens™ operators like Chef Collective have facilities located at various prime delivery locations, allowing restaurateurs to find and expand easily to new locations based on their target demographic and cuisine preferences.

#6– Making informed decisions using the latest technologies


The CloudKitchens™ model is more than just a remote kitchen. Operators like Chef Collective offer restaurants a suite of exciting technologies and accessories designed to grow your business, and improve efficiency. In our kitchens, we embrace the use of technology, enabling you to monitor and manage orders through a single tablet in your kitchen. You’ll also be able to quickly see which dishes are the most popular, and make the necessary adjustments to your menu accordingly. 

This data is not only insightful, it ensures that you are able to make calculated, informed decisions that can improve your business operations in a more effective and targeted manner. Ultimately, this means you will be able to streamline your workflow and improve your margins in the long term.

#7 – Capitalising on the success of third-party delivery platforms


The rise of third-party delivery platforms like Menulog, Deliveroo, and Uber Eats are not some short-term fad as a result of the pandemic. Their dominance on the market was felt long before the pandemic, and will likely continue long after. For some businesses, these platforms are safe havens from the impacts of pandemic measures. It is predicted that the food delivery market will expand to US$8.93 billion in 2022 alone!

The CloudKitchens™ model works in conjunction with these third-party platforms, enabling you to effectively capitalise on their success to further your own.

Want to learn more about the CloudKitchensTM delivery kitchen model?


The CloudKitchens™ business model provides restaurants with not only the ability to survive, but the flexibility to thrive under the pressure of an ever changing F&B landscape.

Are you up for this change? Fill in the form below to get started today!

More insights & stories

There’s more where that came from. Get in the know and check out our addtional insights

Tap into the world of dark kitchens, powered by CloudKitchens™

Tell us a little more about yourself and your ideas so we can put you with the right people. Let us know if you want to schedule a tour of our CloudKitchens™ dark kitchen facilities in Australia or if you have questions.

Full name
Contact number
Company name

Estimated daily orders

Preferred locations

Thanks for contacting us!

We'll reach out shortly so we can understand your business and needs better.