Bangalore cloud Kitchen

Bangalore cloud Kitchen Business Plan

Bangalore cloud Kitchen

1.0 Executive Summary

1.1 Overview

Bangalore Cloud kitchen is an online restaurant that offers customers will food
services through deliveries to their location. The customers make orders using
online platforms; then, the food is delivered to them. Due to the rise of COVID
19, the need for cloud kitchen services has been rising; hence this is the reason
behind starting Bangalore Cloud Kitchen.

1.2 Products

There are various food products from Bangalore cloud kitchen which include
special dishes and other drinks that customers prefer to use.

1.3 Goals

The goal of Bangalore Cloud Kitchen within a one year period is to become the
best online cloud kitchen offering better and affordable services to our food
customers in Bangalore.

1.4 Target market

Bangalore Cloud Kitchen targets all the people in the community, including the
young, mid-aged and the old since everyone in the community needs quality
foods brought at their doors.

1.5 Competitive ability

Bangalore cloud Kitchen

To remain more competitive in the market, Bangalore Cloud kitchen will always
use modern technology to ensure quality food production, and it will embrace
online platforms since everyone is highly depended on technology.

1.6 Management

Bangalore Cloud Kitchen is a sole proprietorship business which is privately

owned, and it has the owner as of the manager and the employees who are the
chefs and the delivery personnel. The chefs are responsible for food preparation,
and they have long time experience in food production, while the delivery
personal have experience in product delivery in Bangalore.

2.0 Business Description

Name: Bangalore Cloud Kitchen
2.1 Mission
Bangalore Cloud Kitchen is a restaurant business that helps all people to get food services
in a convenient manner without going to the restaurant. Our mission is to provide catering
services and customer care services to everyone within the society to ensure that they spend
less time going to order food from the restaurants.
Bangalore cloud Kitchen

2.2 Vision
Bangalore Cloud Kitchen relies on principles of integrity, innovation, honesty and values
the community in large. Our vision is to grow to be a large cloud kitchen business in
Bangalore that will ensure that everyone within the community gets restaurant services with
timely delivery of the orders.
2.3 Objectives
Bangalore Cloud Kitchen has the following objectives for the first three years of its operation
in the market:

a) To create a good environment which is innovative that will be used to differentiate it

from other cloud kitchen restaurants

b) To educate the community on the essence of using cloud kitchen services.

c) To offer restaurant services at an affordable price which favours everyone in the

community.

d) To ensure that there is affordable access to different types of food and other restaurant
essentials for all clients.

2.4 Target market

Bangalore Cloud Kitchen business targets mostly the young people who are located in the
nearby community in Bangalore. It also targets the other community members at large such
as the office workers that have huge amounts of work to do in the offices; hence they only
need food delivered to their offices. Also, this cloud kitchen business targets other classes of
people within the community, such as students and other family people.
Bangalore cloud Kitchen

2.5 Competition
There is a high growth of hotel industry in Bangalore and the need for quality restaurant
services due to the increase in the COVID 19, which has made many hotel businesses to
change into service-oriented businesses. This cloud kitchen business will be using modern
catering and service based technology to ensure that it remains competitive in the market. In
future, the market will still grow due to the rise in a number of people within the community
who require such hotel and restaurant services that are done via the. There are various
competitors in the market, but this cloud kitchen business will ensure that it makes quality
foods and order services to ensure it remains in the competitive hotel market.
2.6 Structure
Bangalore Cloud Kitchen business is a sole proprietorship since it requires to be owned by
only one person, and it requires no other separate entities to own the business. Also, this kind
of ownership was chosen because it does not require the creation of any organizational
formality, and this kind of business is not always subjected to any specialized
statute(Matheson, 2002). Also, this type of business ownership gives the owner the advantage
of making either property or cash contributions into the business and also make a withdrawal
without having to pay taxes(Matheson, 2002).

3.0 Products and Services

Bangalore cloud Kitchen

This part of the business plan explains the information about the restaurant services and food
products that will be offered by Bangalore Cloud Kitchen business.
3.1 Service Description
Bangalore Cloud Kitchen business will be offering various restaurant online services to
the customers depending on the type of food request the customer makes from the kitchen.
The various food products that will be produced by the cloud kitchen business include the
following:
a) Butter chicken which is commonly known as Murg Markhani
b) Tandoori Chicken- which is the famous Indian barbecue chicken recipe
c) Chicken Tikka masala
d) Instant pot Butter chicken which supplements butter chicken
e) Chicken vindaloo curry(Curries)
f) Leavened Indian Flatbread, which is also referred to as Naan.

g) Cottage and spinach cheese which is commonly known as Palak Paneer.

h) The red lamb which is commonly known as Rogan Josh.

In addition, to the different foods that will be available in the Bangalore cloud kitchen,
there will be other types of products such as drinks which include the famous masala chai
which will be offered for free to the regular customers especially in the evenings. Also, Lassi,
which is a traditional Indian drink, will be available from the Bangalore cloud kitchen. Wine
will also be offered to the customers who make curries orders at a lower price since wine
goes in hand with curries.

3.2 Benefits
There will be a major benefit of getting food from Bangalore Cloud Kitchen as they will
be well-prepared foods with high quality. The food products from Bangalore Cloud Kitchen
will be produced with adherence to all the required food and hygiene standards where they
will have the required food nutrient. There will be a timely delivery of the ordered foods to
the customers’ location. In addition, better technology will be used by the cloud kitchen
Bangalore cloud Kitchen

business, which will ensure high quality of food products offered at lower prices for the
customers to afford.

3.3 Service uniqueness

Bangalore Cloud kitchen will be based on the use of the fast online platforms to receive
food orders from the customers then the food packages will always be delivered to
customers’ location. This is unique because the customer will not be coming to the restaurant
to place orders, rather they will be placing their food or drink orders while at their location
then the order will be delivered. Also, this business will be unique where it will be allowing
the customers to use the certain online platform created by the Bangalore Cloud kitchen
business to make orders on the food that they want by selecting on the provided pictures and
this will be saving their time of queuing in the restaurant to make orders. Also, there will be a
delivery person who will be responsible for delivering the food orders to the customers
within the business location.

4.0 Marketing Plan

4.1 Market research
Within the market, there are different cloud kitchen businesses that are in Bangalore
which offer similar online food services. However, not all cloud kitchen restaurants in
Bangalore are offering the same services in terms of foods as this Bangalore Cloud kitchen
will be offering. Some of the cloud kitchens only specialize in one type of food that they sell
to the customers, which makes it difficult for customers to make an order for different foods
from the same cloud kitchen. As a result of COVID 19, there has been a growth in demand
Bangalore cloud Kitchen

for cloud kitchen services which makes it possible to invest in it since many people are
restricted in their movements and are to maintain social distance which makes it possible for
the cloud kitchen market to rapidly grow. Everyone wants to get better cloud kitchen services
which are similar to the services they would expect to get when they go to any restaurant and
hence the need for high quality kitchen services.

4.2 Entry Barriers

There are various barriers that are there when starting the Cloud kitchen business in
Bangalore, and these barriers pose major challenges in terms of business operation in
Bangalore. Such entry barriers in the cloud kitchen business include the high costs incurred
when starting the business, the food production costs are also high if not well monitored and
regulated by the food production team, and also, there are challenges associated with the
acquisition of the various food and health certificates of restaurant operation and also other
licenses. It is also a major challenge to find employees who have qualification in food
production, employees who are committed to food production and are able to offer better
services to the customers.

4.3 Business Threats

There are various threats that may be associated with the business entry barriers for
Bangalore Cloud Kitchen business. The Cloud Kitchen business is likely to face more threats
for it to thrive in the community; hence this might affect the business start-up. Such threats
that might affect the business include different regulation changes that are likely to be put up
by the government, especially to control the spread of COVID 19. Also, the advancement in
technology might affect the start-up of the business because it would require the business to
make use of the latest technology in the food production process for it to be successful within
the business community. In addition to these threats, if any changes are likely to occur within
the economy as a result of COVID 19 or as result of any other factor which influences
changes in the economy, then the survival of cloud kitchen business will be threatened.
Bangalore cloud Kitchen

4.5 SWOT analysis

SWOT analysis is done to assess any businesses’ current position before the business
decides on making new strategies. It is used in finding what works better for the business and
determine what does not work properly. SWOT analysis includes determining the strengths
of the business, the weaknesses within the business, various business opportunities and the
threats that are likely to affect the business (Madsen, 2016).
4.5.1 Strengths
1. Bangalore Cloud Kitchen business will have employees with enough knowledge
and skills in hotel management, and also they will have passion in their food
production work which will make it possible for the cloud kitchen business to
meet its objectives.
2. Bangalore Cloud kitchen will also have a good state of the art food production
equipment that will ensure quality food production. Our kitchen customers will
enjoy quality food that meet the required standards, and also this cloud kitchen
will offer the customers with a fast and reliable online platform where they can
order their foods.

3. The business environment for Bangalore Cloud Kitchen will always ensure that
the food customers are always satisfied with the services where it will offer free
deliveries to the customers, and the customers will be allowed to make orders
while at their place which will save their time and maintain the social distance
which is required by the government.
4.5.2 Weaknesses
1. Bangalore Cloud Kitchen is expected to operate in an area with rapid growth in
food production and delivery technology which is frequently changing. The food
products will be measured in terms of how many sales are made or how much a
certain machine can produce food in a week; hence it will be essential for
Bangalore Cloud Kitchen business to evolve with the changing technology to
improve its production and service delivery.
2. Also, there is another weakness of the cost factor for the computer hardware that
is necessary to maintain the online platform, which varies over time, depending
Bangalore cloud Kitchen

on the new hardware in the market. It is difficult to always keep up with the
evolving technology; hence Bangalore Cloud Kitchen will be required to make a
balance between the technological needs and the other business needs to minimize
the costs of the cloud kitchen operation.
4.5.3 Opportunities
1. There is a rapid growth of a large population that demands quality services every
day to satisfy their needs when locked at their homes. Everyone demands quality
food from the restaurants or any other place that provides restaurant services at a
fair price, and they require timely delivery of the ordered foods since some food
are tasty when eaten while still hot.
2. The growing need for cloud kitchen based services, especially during this
quarantine period where people only need to make orders for their foods from the
restaurants. This opportunity has to be highly appreciated by Bangalore Cloud
Kitchen business where it will allow people to use the internet to make foods and
drinks orders then the food delivered to their location. This is the biggest
opportunity for the survival of Bangalore Cloud Kitchen.
4.5.4 Threats
1. There are many emerging local cloud kitchen business competitors where there
are many people that are currently investing cloud kitchen business due to the
high demand for quality foods and the need for deliveries to the customers. To
overcome this threat, Bangalore Cloud Kitchen will build customer loyalty by
offering better services with timely food delivery to ensure that our customers are
satisfied.

4.6 Services features and Benefits

Bangalore Cloud kitchen online restaurant services will be the best because the dishes will be
delivered on time to the customers while they are hot. The most popular dishes will be
offered by Bangalore cloud kitchen where some foods will be prepared based on customers'
requests on the different ingredients. In addition to the quality foods from the cloud kitchen,
there will be free service delivery of the foods to the customers’ location on time. The
Bangalore cloud Kitchen

customers will be using the online platform to access all the dishes served by the Bangalore
cloud kitchen in order to make the online orders.
4.7 Target Customers
Bangalore Cloud Kitchen business mostly targets the entire community in Bangalore with
different age groups. The entire community is targeted because everyone in the community
needs good food that meets the health standards. In addition, the target customers for this
business are the office workers who earn higher amounts of salaries and are not able to go
into the restaurants during meal time hence Bangalore Cloud Kitchen would serve them
better since they will have easy access to online food orders. The entire community is the
major target customer for Bangalore cloud kitchen business since everyone can access online
platforms due to the rapid use of the internet and the growth of technology.

4.8 Market Needs

There has been a high demand in better restaurant services where the customers are not
required to visit the restaurant frequently to make orders especially due to the restrictions
associated with COVID 19, but they can make their orders while at their place then the food
is delivered to their locations. This high demand for quality foods and better services makes
the market need to be highly viable for cloud kitchen services.
4.9 Market Segmentation
Bangalore Cloud Kitchen has divided the market into various categories where the
market is segmented as shown in the figure below where the largest market for the cloud
kitchen business is the university students since they prefer online services.
Bangalore cloud Kitchen

Figure 1: segmentation

4.10 Promotion
Bangalore cloud Kitchen will mostly value online marketing and brand promotion due to
the increased dependency of the internet. Social media will be frequently used to advertise
about the foods and restaurant services that will be offered at Bangalore Cloud Kitchen.
Bangalore Cloud Kitchen will have a website and a mobile application where the food
products can be shared to the customers and also, the cloud kitchen business will embrace the
use of mobile marketing where push messages to the customers living within the cloud
kitchen business community. In addition to social media and online marketing, the business
will also print brochures as a form of marketing to show its food products which will give
better customers attention.
4.11 Promotion Budget
Bangalore Cloud Kitchen has a plan of spending about $1000 for the promotion and
marketing to the different target customers where there will be free food and service as gifts
to the customers. The amount will also be used to create awareness on the importance of
having quality foods from cloud kitchens within the community, especially during this period
with the restricted social gathering. In future, about $1000 will be used in every year to
promote the business in the community.
 Bangalore cloud Kitchen

4.12 Pricing Strategy

It is important to consider making your business service price fair to the customers.
Bangalore cloud kitchen will choose a simple and fair method of charging the customers in
monthly terms for the customers using the online food ordering platform that will be
provided by the cloud kitchen business where they will be allowed to pay either on a weekly
basis or in monthly basis depending on the customer preference. The regular customers will
use the weekly payment while the random customers will use the monthly payment method.

4.13 Proposed Business Location

Bangalore Cloud Kitchen business will be located in Bangalore. This location was chosen
due to the higher number of people demanding restaurant services while at home and the
need for better foods. This location consists of different types of customers who depend on
restaurant foods, and Bangalore Cloud kitchen will be the best service for them.

This close proximity to the community will make the cloud kitchen business to remain
competitive since the people need closer restaurant services available with timely food
delivery. This business location for Bangalore Cloud Kitchen will be convenient for the
customers and for the business employees to freely deliver the food to the offices and the
other community members. Bangalore Cloud Kitchen will be located in a commercial
building where there are other types of businesses and firms that have employees require
restaurant food services.

4.14 Sales Forecast

Table 1: Three-year sales forecast for Bangalore Cloud Kitchen in Us Dollars ($)
 Bangalore cloud Kitchen

Table 2:12 month sales forecast

Bangalore cloud Kitchen

5.0 Operational Plan

5.1 Production
The food in Bangalore cloud kitchen will be produced with the help of equipment such as the
refrigerators, oven and commercial fryers that will ensure safe production and cooking of the
foods. The refrigerators will be used to store foods that are likely to go bad and to store the
drinks to ensure they are at room temperature.
5.2 Quality control
To maintain the quality of production in the cloud kitchen, the kitchen will always make sure
that all foods are fresh. Also, the artificial ingredients will be eliminated from the packaging
and food storage to keep the food flavour since customers prefer natural tastes. The
ingredients will be frequently monitored to check on their expiry.
5.3 Location
The cloud kitchen business will be located in Bangalore, where it will be a small size of the
shop since it does not require the front rooms in a commercial building. The location for the
Bangalore cloud kitchen will be next to other hotels based on the zoning given by the
municipality. The location of the business will be easily accessed by the customers since it
will be in an open street where people can come in case of queries or getting feedback.

5.4 Legal Business environment

The operation of the cloud kitchen requires various licenses and certificates in order to
operate. Such licenses include GST registration certificate, Trade license. Fire and safety
license, Food Safety and Standards Authority of India (FSSAI) license which ranges between
1 to 5 years.
 Bangalore cloud Kitchen

5.6 Suppliers

Table 3: Suppliers

5.7 Personnel
Bangalore cloud kitchen will only require a few numbers of employees who will be
responsible for production, food processing and the employees who will ensure deliveries to
the customers are made. There will 2-3 employees responsible for food preparation and two
employees available to deliver the food to the customers. The production team will include
qualified chefs who will be preparing all types of food brands.
 Bangalore cloud Kitchen

6.0 Management and Organization

6.1 Biographies
Bangalore cloud kitchen will be privately owned, and since it is a small business, it will not
require any other management other than the business owner. The owner of this business will
have experience in hotel management.

6.2 Management Gaps

Due to the lack of marketing knowledge by the owner, there will be a need to hire a sales
manager at times when the business needs to be marketed, which will be once in a year.

6.3 Organizational Structure

Figure 2: Bangalore Cloud Kitchen Organizational Chart

 Bangalore cloud Kitchen

7.0 Financial Plan

7.1 Start-up Capital
Table 4: Start-up Capital for Bangalore Cloud Kitchen
 Bangalore cloud Kitchen

7.2 Profit and loss (3 years) projection

Table 5: Profit and Loss projection

 Bangalore cloud Kitchen

7.3 Cash flow projection

Bangalore Cloud kitchen will acquire a $2400 loan from a bank which will be given at a 10%
interest rate. Then this loan will be paid back to the bank at $800 in every month within three
years. The $ 9,290 short term loan will also be paid back at a rate of 8%.
 Bangalore cloud Kitchen

Table 6: Three-year cash flow projection for Bangalore Cloud Kitchen business
 Bangalore cloud Kitchen

7.4 Projected Balance sheet

Table 7: Balance sheet
 Bangalore cloud Kitchen

7.5 Break-even calculation

Figure 3: Break-even analysis

7.6 Use of capital

The money that will be borrowed from the bank will be used to purchase the necessary
equipment that will be used in food production and also, the money will be used to obtain the
licenses that are required and the also paying the rent for the shop.
 Bangalore cloud Kitchen

References
1. Anderson, T. C. (2010). Knowledge-Driven Entrepreneurship: The Key to Social and
Economic Transformation. Heidelberg: Springer Verlag.

2. Ansoff, I. (2007). Strategic Management. New York: Palgrave MacMillan.

3. Bea, F. a. (2005). Strategisches Management. Stuttgart: Auflage. Lucius & Lucius.

4. Bunderson, G. (2005). Have Your Business Plan in Hand Before Seeking $$$. Idaho
Business Review.

5. Delmar, F. a. (2005). Does Business Planning Facilitate the Development of New Ventures?
Strategic Management Journal 24, 1165–1185.

6. Gome, A. (2005). Plan Not to Plan. BRW 27, 72–73.

7. Hills, F. (2004). Business Plans Handbook.

8. Indico, J. (2017, November 20 ). Top 5 Drinks To Order In Indian Restaurants. Retrieved

from https://www.indicostreetkitchen.com/blog/top-5-drinks-to-order-in-indian-restaurants

9. Kochar, L. ( 2020, Apr 14). The basic requirement to start a Cloud Kitchen Business.
Retrieved from https://www.legalwiz.in/blog/basic-requirement-to-start-a-cloud-kitchen-
business#:~:text=The%20main%20licenses%20to%20start,starting%20a%20food
%20delivery%20company.

10. Mason, C. a. (2006). What Do Investors Look for in a Business Plan? International Small
Business Journal 22, 227–248.

11. Matheson, J. H. (2002) ‘Choice of Organizational Form for the Start-Up Business’, 7.

12. McdonaldPaper. (2019, April 03). Food Quality Improvement Tips For Your Restaurant.
Retrieved from https://mcdonaldpaper.com/blog/food-quality-improvement-tips
 Bangalore cloud Kitchen

13. McKeever, M. P. (2004). How to Write a Business Plan. Berkeley, CA: Nolo.

14. Mishra, S. (2019, Dec 4). Opening a Cloud Kitchen? All the Pros and Cons you should know.
Retrieved from https://medium.com/@voicesinmyhead/opening-a-cloud-kitchen-all-the-pros-
and-cons-you-should-know-244397edba32

15. Pinson, L. (2005). Anatomy of a Business Plan: A Step-By-Step Guide to Building a Business
and Securing Your Company's Future. Chicago: Dearborn Trade Publishing.

16. Sarkar, P. V. (2020, June 22). 12 Most Popular Indian Dishes and Recipes. Retrieved from
https://www.thespruceeats.com/popular-indian-dishes-1957891

17. Selekha. (2020). Food Product Suppliers in Bangalore. Retrieved from

https://www.sulekha.com/food-products-suppliers/bangalore

18. Times, R. (2019). 10 Essential Kitchen Equipment For Your Cloud Kitchen And How To
Choose Them. Retrieved from https://www.posist.com/restaurant-times/cloud-
kitchen/cloud-kitchen-setup/cloud-kitchen-equipment-and-how-to-choose-them.html