Financial Forecast

Expenditure
An expenditure represents a payment with either cash or
credit to purchase goods or services. An expenditure is
recorded at a single point in time (the time of purchase),
compared to an expense that is recorded in a period
where it has been used up or expired. An expense is the
cost of operations that a company incurs to generate
revenue. Common expenses include payments to
suppliers, employee wages, factory leases, and
equipment depreciation.
Setting Up and Running Expenditure
Setting up and running expenditure include the cost of
land, setting up the plant, electricity, wages of labour and
salaries of employees. Some of these expenses are one-
time expenses and others are incurred while running the
business.

Cost of Land

Land is one of the basic requirements required to run a business. As a cloud kitchen, the
organisation can be placed away from the city but it should be connected with main areas
through proper roads and public transports as it will be easier and feasible for the delivery
network. The rent for 150-300 sq. ft area is Rs 45,000-1 lakh. The lease rent costs Rs 6.5 to
7 lakh per annum.

Setting up the Plant

The assets of a business including buildings, equipments, and all vessels permanently
employed is called Plant. The average cost of starting a plant in India is around Rs
45,00,000. The equipment for cloud kitchen comes at between Rs 3.5-4.5 lakh. The cost of
the interiors is around Rs 2.5-3 lakh-

Electricity

Electricity is required for basic functioning in the plant and production. On an average, a
manufacturing facility use 95.1 kilowatt-hours of electricity per sq. ft. per year. That would
make the electricity expenses for the year be around Rs 10,00,000.

Production Expenditure
Production Expenses are the expenses which are incurred during the production process.
These expenses include raw-materials, depreciation, and other inputs.
Raw-Materials

Raw materials are the initial inputs of the product. These are required to start the production
process and are used up in the process to make the final product.

The raw materials required in production of the Smart Dustbin are:

1. Steel –

Steel is the main output in the cloud kitchen as it will be required for the counter tops and
platforms. The utensils and other tools will be made from steel.

2. Software –

A software specifically developed to take inputs from the Infrared Cameras to identify the
types of dishes passing through has to be developed so that it can feed information to the
Infrared Laser so that it can mark it.

3. Conveyor Belts –

The conveyor belt will be used baking pizzas and cakes for

4. Motors –

Motors are required to turn the conveyor belt.

5. Utensils and tools

Utensils and tools such as mixer, grinder and different other tools will be required to
prepare food and dishes.
6. Vehicles
Vehicles and carriage for delivery persons will be required for each delivery person
which will cost around 1.5 lakh per person. Modifying the motorcycles according to
the brand will cost and excessive amount of 25000.

Acquiring Licenses: FSSAI License can cost you approx. Rs 10,000. And over this you'll
require TIN Number, GST Registration, Fire License, Municipal Health License, which can
be time consuming to apply on your own and instead you can make this process easier by
hiring any agency or outsourcing the service to start your kitchen.

Setting up online food ordering: You can hire a freelancer to create a website or an app for
your business with features like live food tracking, Order tracking, Inventory management
etc. which can cost you approx. Rs 50,000. If you’re using Swiggy or Zomato as a service
partner, you’ll have to pay a one time integration fee to get access to all seller features along
with 15-22% + GST of each order. Again the delivery boys will also be required to pay,
which will again cut from your profits.

Setting a take away counter: Having a live take-away counter will demand you to purchase
and maintain a POS Machine for taking orders and billing properly, which will cost you
approx. Rs.30,000. You also need a card reader, for customers to swipe-in their credit or
debit cards, which costs approx. Rs 25,000.

Kitchen equipment, Grocery and Packaging: While the basic kitchen equipment can cost
you approx. 2-3 lakhs, you’ll also need to invest on any other cuisines specific utensils and
equipment. Again, as a brand it is important to have customised and properly sanitised
packaging materials to send your food and keep it hot until it reaches your customer.
Grocery costs can be approx. Rs 5000 or more per day according to the traction you’re able
to achieve among your customers.

Technical Gadgets : It will cost you around Rs 40,000 to 50,000 as an initial investment for
proper internet and Wi-Fi Connection along with multiple portals to manage orders and
inventory.

Staff and Salary: It is a must to have a minimum of at least 5 staff; 2 cooks, 2 helpers and a
housekeeper. They need to be treated and paid well with all allowances, additional costs for
hiring delivery boys, and providing uniforms; which can approximately cost you 2 lakhs a
month.

Marketing Costs: You’ll have to list your restaurant on all platforms like Swiggy and
Zomato, Invite local bloggers and vloggers for food tasting, Offers and initial discounts,
Running ads on social media and other campaigns. All of these can come upto Rs 25,000 as
an investment.

Miscellaneous - Regular deep cleaning of your facility, wastage of food, regular pest
controls, COVID Compliances, Staff consumables such as gloves, aprons etc, standard
operating procedures, Staff accommodations, Mobile phones, electricity & water bills etc
would consume Rs 30–40k a month.

Depreciation
The term depreciation refers to an accounting method used to allocate the cost of a tangible
or physical asset over its useful life or life expectancy. The depreciation rate on average is
around 15%.

On an average, a basic cloud kitchen will cost around Rs 5-5.5 lakhs of investment and it
also depends on the business model and location.
Licenses 10000

Civil, MEP Setup, Security Systems 75000

Kitchen Equipment, Exhaust &Fresh Air Systems 350000

Kitchen Utensils/ Accessories 40000

IT setup (Software & hardware) 50000

Branded Food Packaging (Approx. 2 Months Stock) 50000

Raw Material (Approx. 1 Month Stock) 25000

Miscellaneous Expenses 10000