What Is a Cloud Kitchen?
A cloud kitchen (also called ghost kitchen or virtual kitchen) is a food business that operates without a dine-in area. Orders come in digitally, food is prepared, and delivered to customers — eliminating the cost of front-of-house operations, real estate for seating, and waitstaff.
Cloud kitchens are booming in India. The market is expected to reach ₹2,500 crore by 2027. Lower startup costs (₹5-15 lakhs vs ₹20-50 lakhs for traditional restaurants) make it an attractive option for first-time food entrepreneurs.
Step 1: Plan Your Concept & Menu
Start with market research:
Step 2: Set Up Your Kitchen
Kitchen setup requirements:
Step 3: Choose Your Technology Stack
The right technology saves hours daily and prevents order errors:
Pro tip: Food delivery apps charge 25-35% commission. Build a direct ordering channel with Restrofi to keep 100% of those orders' revenue. Use apps for discovery, then convert customers to direct ordering.
Step 4: Launch & Scale
Launch strategy:
Most cloud kitchens break even within 3-6 months if food cost stays under 35% and they gradually shift orders from commission-heavy apps to direct channels.