CloudKitchens™ are the newest and hottest trend in the F&B world. They offer food delivery businesses the chance to modernise how they serve customers and reap the benefits of the booming food delivery world. It’s a low risk, high reward solution to the downturn in dine-in orders, and the growth of the food delivery market. But not all CloudKitchens™ spaces are the same – and they certainly aren’t a one-size-fits-all solution.
The CloudKitchens™ concept is the building block of a new and streamlined kitchen. By definition, they are kitchen spaces that typically have no dine-in space at all for customers – and rarely offer takeaway services. The majority of what a CloudKitchens™ does is fulfil delivery orders, together with third-party delivery companies like Deliveroo, Uber Eats and Menulog. In doing so, they can operate in cheaper areas away nearer to residential areas, work with much smaller and efficient teams, and prioritise cooking food in the most convenient, cost-effective, and professional way possible without sacrificing quality.
By working with a reputable CloudKitchens™ operator in Australia like Chef Collective, you can choose from various turnkey kitchen space solutions. Each space comes equipped with everything you need for success—from the most up-to-date F&B industry technology to marketing support for growth and more.
The following are some of the main types of businesses that we’ve seen work in our spaces, as well as the type of brands that inhabit them. To help you figure out which CloudKitchens™ model is the right fit for your brand, here, we highlight the different types of CloudKitchens™, and the brands we’ve worked with in each area.
- Local entrepreneur / startup
- Local chains
- National chains
- Regional and international chains
- Drinks / dessert brands
- KIV (keep in view) kitchen
1. Local entrepreneur / startup
If you’re a local entrepreneur or small startup, our CloudKitchens™ spaces provide the ideal solution. Upfront costs are low and operational costs are minimal, which means that, as a business that’s just starting out, CloudKitchens™ provide the way to bring your idea to fruition, without too much risk.
A CloudKitchens™ owner can get their business up and running with an investment of around AU$23k, which is a small figure compared to the AU$1M investment often required to open a dine-in eatery. Also, when you compare with the traditional restaurant model, it only takes a CloudKitchens™ 6 months to break even with 10% profit margins on a $1M run rate, compared to the typical 5 years.
We also have a team of kitchen specialists who will be by your side – your journey to becoming a successful brand need not be taken alone.
An example of a startup that uses Chef Collective’s CloudKitchens™ is Chuanizuier Chinese food.
2. Local chains
For local chains, CloudKitchens™ spaces provide a low-risk opportunity to operate multiple locations with similar operations. All our CloudKitchens™ spaces are fully equipped and designed with a streamlined processes in mind – with order management systems and runners. New locations can be set up and ready to do business, with a new target demographic, at a fraction of the time it takes a brick-and-mortar restaurant. Our CloudKitchens™ are strategically located in areas with access to an active customer base, so jumping into one of our locations offers national chains the possibility of low-risk, cost-efficient expansion into new regions.
Typically, traditional restaurants take 48 weeks to launch, whereas a CloudKitchens™ is ready to start cooking for customers in as little as 3 weeks.
Many notable local chains work in our CloudKitchens™ spaces including Wing Culture by Seoul Bistro, Jack & Wills Burger Joint, Greek Street Katina, Clayfields Seafood & Burgers, Schnitzengiggles, and Thai Ginger Express.
3. National chains
National chains can take advantage of the same benefits as local chains. With the CloudKitchens™ business model, national chain brands can profit from quick expansion with lower costs. With a traditional F&B business model in Australia, restaurant owners must take on a hefty upfront investment and high levels of risk, as expanding into new areas is never a guaranteed success.
Ayam Penyet Ria is an example of a national chain that successfully entered into new territories with our CloudKitchens™ offerings.
4. Regional and international chains
Similarly, regional and international chains maximise success with quick expansion and market testing by taking the CloudKitchens™ route with us. International chains can avoid the hassle of figuring out the logistics of securing local permits and insurance, because our Chef Collective experts handle all of this.
This approach saves brands both time and money and lets the chain step into a ready-to-go kitchen space and get the business going in no time.
Popular burger chain, Carl’s Junior, is an example of an international chain that has used our CloudKitchens™ spaces to enter into Australia’s food delivery market.
5. Cold/dessert brands
Cold/dessert brands find great success using CloudKitchens™ as well. For these types of brands, CloudKitchens™ serve as storage space so that business owners can access more customers in a bigger market. Such brands can grow their virtual brand awareness and simply pay a minimal cost to store their ingredients or food products with us.
6. KIV kitchens
CloudKitchens™ spaces also serve as food storage space for KIV (keep in view) kitchens. Storage equipment, food licences and all necessities are built into all of Chef Collective’s CloudKitchens™ spaces. Plus, our team handles all of the maintenance like cleaning, insurance, making our spaces a hassle-free solution for KIV businesses looking to store ingredients or dishes that can be transported at a moment’s notice as needed.
Get in touch with us today!
Would you like to get more information about starting a restaurant in a CloudKitchens™ space in Australia? Simply fill in the form below and one of our Chef Collective experts will be happy to help you get started.