August 08, 2021

How the CloudKitchens™ Model is Helping Restaurants


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.

Times like these have forced restaurant owners to look for innovative ways of keeping their businesses alive. Thanks to innovation in the F&B industry, delivery-only restaurants have become a viable alternative for businesses looking to cater to a new pool of customers. With fewer dine-in customers, CloudKitchens™ delivery kitchens give restaurants a modern solution for their traditional handicaps. They enable them to overhaul their operations into a lean and efficient business model, saving hundreds of restaurants from bankruptcy and turning them back into profitable businesses.

  1. Reduced Operational Costs
  2. Take advantage of the growing online food delivery market
  3. Make informed decisions using the latest technologies
  4. Get set up in a few weeks
  5. Affordable expansion into new geographical areas
  6. Low risk, low cost and high reward
  7. Capitalise on the success of third-party 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™ model offers restaurant owners an exciting opportunity to expand their operations beyond their traditional restrictions. Operators like Chef Collective will also help with prepaid permits, construction, renovation, and more, further simplifying the process.

#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 growing rapidly and providing a promising opportunity for businesses to try new methods of reaching their customers.

Dark kitchens 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 – Make 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 F&B technology, enabling you to monitor and manage orders through a single tablet located in the centre of your kitchen. You’ll also be able to quickly see which dishes are the most popular, and make the necessary adjustments to optimise for them. 

This data is not only insightful, but it also ensures that you are able to make calculated, informed decisions that can impact 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 longer term.

#4 – Get set up 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 CloudKitchensTM delivery kitchen model, these factors are taken care of for you. Scaling your restaurant takes just weeks. 

#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 might look for areas known for restaurants, or streets with higher foot traffic, delivery-focused restaurants and CloudKitchensTM delivery kitchens want to be situated near residential areas and people who frequently order online. But there are myriad other factors that come into play, such as the type of restaurant, customer demographics, and much more. 

The CloudKitchensTM model offers restaurants the chance to expand into neighbourhoods at a realistic price point. Being able to move into new markets rapidly is a great way to drive success for your restaurant. 

#6– Low risk, low cost and high reward


By working with a CloudKitchensTM delivery kitchen operator, you’re freeing yourself from the shackles of commitment. With a traditional restaurant, you might be hesitant to leave a location after investing so much money into renovations and new equipment. After months – or even years – of making no money, you’ll eventually have to make that hard decision to pull out. This is the nature of the F&B industry, and even the most successful restaurant chains close down venues from time to time. 

With a CloudKitchensTM delivery kitchen, you can simply end your lease, and the operator will be able to find a new restaurant tenant to take up the space. Low commitment in this sense means expansion has a lot less associated risks, but still the same opportunity for success.

#7 – Capitalise 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 anticipated that the food delivery market will expand to more than $3 Billion AUD in 2021 alone!

The CloudKitchensTM model works in conjunction with these third-party platforms, enabling you to effectively capitalise on their success to further your own. They facilitate partnerships with platforms like Uber Eats, DoorDash and Deliveroo that enable you to reach out to a far greater number of potential customers than otherwise achievable with a traditional restaurant.

Want to learn more about the CloudKitchensTM delivery kitchen model?


With all these factors in place, the CloudKitchens™ model provides restaurants with not only the ability to survive, but to thrive under the pressure of a pandemic. Fill in the form below to get started today!

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