Cloud Kitchens: The next big thing

Cloud Kitchen; POS; Contactless; Experience Commerce; CLTV

F&B industry is one of the sectors that faced the worst casualties during the coronavirus pandemic.  Recent estimates by the Reserve Bank of India suggest that the economy never be the same again. There will be a forced opt out in the Dining Out Lifestyle. The elasticity in the demand will not recoup for at least a year!.

According to NRAI’s Katriar:

  • About 50% of the restaurants will get shut if the lockdown lasts till May.
  • There are only 5-6 chains of restaurants that have the cash reserves to sustain more than a month(because they never thought of a contingency plan and a buffer reserve, as everything was so hunky dory).

Since most of the restaurants are shut, Swiggy & Zomato have initiated to serve the customers through the Cloud Kitchens because they could, due to the operating procedures of their Business Plan. POSist’s co-founder and CEO Ashish Tulsian believes that Cloud Kitchens are going to be the next big thing to hit the market. A passing fad till something new comes along, and the landscape changes again.

The dine-in method might go on in a recession for sometime and the segment will work solely on the online ordering systems. This is where Reciproci comes in as a game changer creating an ultimate POS for your Cloud Kitchen to help you transition the curve seamlessly and bridge the gap between you and your customers.

Basics of a Cloud Kitchen

Few basic requirements that entail fulfillment and immaculate understanding in order to open a successful Cloud Kitchen are:

  • An Ordering System on Web,  App and or Social Media to order from

A website will be the first thing that a customer will notice about your brand and will be the sole connection between you and your customers. It helps you to buffer your customer base and give a shot in the arm to your bottom-line. This requires frequent up-gradation and user-friendliness.

This provides an added value  to your customers to order directly from their social media handles while scrolling through your enticing posts and they view variants without changing platforms. This helps to have a strong social media presence while bolstering the conversion rate.

  • Order Management System

For a smooth functioning of any cloud kitchen, the main prerequisite is  to excel at their speed, automation and optimization (SAO). A good Order Management System allows you to achieve all the three by ushering all your orders at a single point and channeling them accordingly in order to optimize the number of deliveries per day (DPD).

  • Voice of Customers (VoC)

Since you are not physically connected with your customers in a cloud kitchen, then having feedback forms and surveys is the only resolve left for your customers to interact with you. The best way to engage customers in a cloud kitchen is through a robust yet agile feedback mechanism. This will help you to get a clear picture of your business as to where it stands in the crowd.

  • Kitchen Licensing and Location

You should have a kitchen close to your targeted area in order to provide a quick service to your customers. The best way to save further costs is to collaborate with fellow partners who are also planning to open up a Cloud Kitchen.

  • Employees (Cooks)

You need expertise in designing the right menu for your customers as in cloud kitchens you can only express your vision through your food items as you do not have an ambience support. For this you need experts who can do this marketing tasks for you.

  • Raw Material Inventory

You definitely need to have an inventory to cater to your customers all stocked up and optimized as per their demands. Some people even start to grow raw materials required in their food items to provide that extra personal touch and create a USP.

  • Delivery Partners

Nowadays, people experiment with having their own delivery partners in order to maximize the number of orders per day rather than going for food aggregators where commissions and demands to remain in the competition are high.

  1. It has been 5 years since the food delivery delivery boom, and restaurenters have already came to a conclusion that their profit margins have gone down tremendously due to steep discounting methods of food aggregators due to which they initiated the #Logout Movement. 
  2. The food aggregators used to take away 10% (a pound of flesh) of their revenue stake which was also a cause of concern. 
  3. Terms and conditions of food aggregators were on an increasing curve telling them that they should prepare their meals within 15 minutes which was causing the restaurants to lose their authentic touch of cooking. 
  4. Many large aggregators refused to share data about the customers to the restaurants hence the part of Knowing your Customers goes to a toss in the case of food aggregators. 

Due to these reasons, restaurants should see the writing on the walls and come up with their own POS and delivery partners to handle their business as per their demands without compromising on their profit margins and yet delivering the customers all that they prefer by having to know them through your own data.

  • Sturdy Packaging

To offer your people with hot and fresh food without the chances of spillage you need to have a sturdy packaging in order to deliver the food without any spilling to your customers. It can also act as a part of your branding activity.

Marketing Strategy in the  Cloud Kitchen Environment

There are many ways in which you can market your cloud kitchens. Some of the recommended are:

  1. Have an online social media presence as the food companies are mostly discovered through word of mouth, social media, influencer’s recommendations, social media handles and advertisements.
  2. Customer retention through Customer Relationship Management (CRM) by providing loyalty programs, subscriptions, gifting, etc.
  3. Increasing your audience base by Scaling Your Customers through referral programs.
  4. Managing reviews through Voice of Customers to act upon immediate feedbacks can be the best way to stay in touch with your customers.
  5. Having a visually appealing website and a user friendly mobile app is a must have as it is the first point of contact between you and your customers.
  6. Keeping an attractive menu with easy accessibility and flow is a must to give the customers a seamless experience.
  7. Analysis of your traffic to cater to their needs just in time is the way ahead from Knowing Your Customers to Owning Your Community.

What Reciproci offers to the business? 

  • Centralized Order System:

Centralized order taking app for the management and distribution of orders to the nearest outlets.

  • Hyperlocal Solutions:

Hyperlocal solutions will help to build up your market and customer community in the area where you are targeting to sell.

  • Social Media Ordering System

Helps you to get direct orders from your social media posts and builds up your loyal customer base. It also helps you to get real time insights of the orders and will help in getting higher sales conversions.

  • Create Multiple Brand Tabs:

Helps manage your different brands through a single app to optimize your operations and give your customers a feel of enjoying services from different restaurants.

Let the data stitch the story of your customer’s journey by leveraging the power of Machine Learning and Artificial Intelligence!

  • Quick Order Assignment

Provides an optimal route to your delivery partners by making use of used cases of operations management in order to optimize the number of deliveries per day. Thus, increasing your revenues.

What Reciproci offers to the end customers?

Capture your customers from their smartphones and increase your revenues instantly.

Amidst Covid-19, the era of new normal has started and along with that there has been an evolution in the F&B industry as well, thus introducing Contactless Commerce.

With the Loyalty 3.0 we are aiming to acquire, retain and engage your customers through innovative experience programs

  • Gamification:

We exploit Gamification elements to help the customer build their own communities and the restaurants to help in Scaling Your Customers.

We exploit the use of surveys and questionnaires in order to get an in-depth knowledge of what the customers actually want from the restaurant so that you are able to fulfill all their needs through our Voice of Customers program.

Cloud Kitchen Infographic, Aggregator, Experience Commerce, Customer Loyalty, Brand Ownership