Americans love the warm and tasty cup of coffee every morning, which no doubt explains why independent coffee shops bring in more than $12 billion in annual sales. Experts predict that the Global cloud kitchen market size will reach $71.4 billion at a CAGR of 12% by 2027.
However, the last two years have transformed how businesses deliver their products/services to their customers. Covid-19 ushered in a new demand for safety and convenience all around the globe.
Cloud kitchen or delivery-only kitchen is the latest trend that has quickly established its roots in the food industry. The popularity of coffee delivery kitchens is rising as people love the comfort and convenience of ordering online using their smartphones.
However, the competition in the delivery-only business is fierce. You must choose an integrated technology system to compete in a crowded online marketplace and stay ahead.
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If you are confused about how to start your own coffee delivery kitchen at a minimal cost, this article is for you. We have curated a step-by-step guide to help you get your foot in the door and start a thriving business.
Benefits Of Coffee Delivery Kitchen Business
Now more than ever, people prefer online ordering and takeouts rather than dine-in. Call it laziness to walk to the restaurant or the love for the comfort of home space, consumers want to order and enjoy their food and drinks with a few swipes.
All thanks to the delivery-only restaurant model, businesses can now cater to consumers who prefer to dine from home. Let us talk about some main benefits of delivery-only restaurants.
- Flexibility: If you want to flex your creative muscles, there is no better choice than establishing a coffee delivery kitchen business. You can serve piping hot coffee around the town instead of sticking your business to one physical location. As a result, this will help you expand your business with fewer workforce and expenses.
- Improve Sales: Your customers rely heavily on online orders and delivery systems in this digital and tech-savvy world. The only way to reach them is by taking your business online and allowing them to place an order through their hand-held devices. Independent coffee restaurants can boost sales at minimal overhead expenses by investing in one feature-rich and robust ordering system – digitization, comfort, and convenience in one place.
- Attract More People: Establishing a coffee delivery kitchen business is less expensive than starting a full-fledged restaurant. Restaurant owners need a single online ordering software to make their coffee delivery kitchen a 'customer magnet.' Undoubtedly, a coffee delivery kitchen business is profitable in the digital world. However, you'll need to put in a lot of effort, be extra diligent, and have a sound strategy to set up your delivery-only business.
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Your Guide to Open a Coffee Delivery Kitchen
Below we have curated a list of the crucial steps you must follow to give your coffee delivery kitchen a head start.
Set A Budget
Before you start shooting arrows in the dark, setting a budget for a coffee delivery kitchen is a vital step. How much can you spend on the delivery-only business? Would you sustain in the market if ROI is less in the first few months? Think before you move to the next step!
You should plan a financial strategy that includes the setup cost and future expenses. Next, you should list other expenses, such as staff salary, rental expenditures, raw materials, etc., to prepare a full-fledged budget plan.
Remember, you'll have to market your products on various social media platforms and create promotional campaigns to get more traction. That's why your budget should include the marketing cost that will make your business the talk of the town.
Lastly, you'll need to decide which technology and tools to leverage while taking your business online. These may include an online ordering system, POS technology, etc., that will help you stand head and shoulders above the competition.
Decide Location
Cloud kitchens are profitable and require less startup cost. Your delivery-only kitchen does not have to do anything with parking space or footfall.
Therefore, there is a massive reduction in the opening cost as you don't have to invest in a high-end location.
All you have to focus on is getting a place with an adequate water supply, proper sanitation, and low rentals. In addition, restaurant owners should choose locations based on customer demography and high coffee demand.
Market research is the cornerstone of any thriving business in this competitive market. It will help you choose the right location and give you a wealth of data regarding the industry, competitors, and consumers.
In short — conducting market research will take your coffee business where your customers are!
Implement Online Food Ordering
The profit margin of your online business will depend on how fast you deliver coffee to coffee lovers.
You'll have to select an online ordering system to integrate with your existing software. This way, it is easy to manage more customers, track orders on a real-time basis, and retain coffee lovers.
Another advantage of an online ordering system is the accuracy that it brings to your table. Customers can place orders with the easy-to-use online ordering system, and you can accept the order without delay.
This reduces the chances of errors caused due to miscommunication and helps restaurant owners create better customer service.
Restolabs is a versatile online ordering system for small and independent restaurants with an integrated POS system. It allows you to manage all your orders, creates loyalty programs, and get high returns in the long haul.
👉Also Read: Are Free Online Ordering Systems For Restaurants Worth It?
Equipment, Raw Materials & Packaging
There are three things restaurant owners need to master to deliver unparalleled customer service — equipment, raw materials, and packaging.
For establishing a coffee delivery kitchen, restaurant owners can procure new electronic items and old equipment to save money and focus on what matters the most — customers. Also, a specific budget should be allocated for the raw materials to avoid last-minute surprises.
Since you are no longer able to showcase your plating skills at the restaurant, packaging plays a huge role. Packaging like a pro can ensure that your customers smile and feel valued when their coffee arrives at their doorstep.
Style is crucial for the first impression, but so is sturdy packing that preserves the food quality. Choose a color and tagline that will hit the right chord in your customer's hearts, and they will be forced to be your loyal consumers.
Analyze The Staff Requirements
The secret sauce behind a successful business is the team that works behind it. Your team will not only help in preparing the delicacies in the restaurant but will also help in menu design. So, focus on hiring the right talent depending on your business requirements.
Point Of Sale Technology
The success of your online business will heavily depend on how fast you can accept and deliver customer orders. Integrating the right POS technology will help you track orders from different online platforms and offer fast delivery to your customers.
And the benefits don't end here! A POS technology customized to suit your needs can help you with detailed reporting. In-depth customer analytics can provide personalized and valuable experiences to your customers.
Advertise
Now comes the noteworthy part — advertising and marketing your coffee delivery kitchen.
You may have the best chef who makes the world's best coffee. But, without a marketing strategy, generating a continuous revenue stream is tricky.
So, which is the best way to stay competitive in the market? Online marketing! You can offer discounts, loyalty points, rewards, or coupons to drive new customers and retain existing ones.
Social media platforms are the place where you can connect with your customers directly. Leveraging it for your coffee delivery kitchen business can help you loop in new and existing consumers.
Wrapping Up
A coffee delivery kitchen business or cloud kitchen is a profitable business venture growing in popularity. However, with fierce competition, restaurant owners should focus on creating a robust online presence to attract leads.
The trick, however, is to ensure that you have a sound business plan before starting. Also, having the right tools and technologies that are affordable, easy to use, and practical can help you make things convenient for your customers.
Once you've established a delivery-only business, you can gain traction and increase sales at minimal expenses. Restolabs can help you create a robust online presence for your brand that stands out.
Don't just wait; it's time to commence your online business journey with the versatile online ordering system. Request a demo or start your free trial now!
