As per your article, aggregators charge a higher delivery commission to cloud kitchens. why so? Is it because they choose to set up shop in remoter areas to save on rent?
Hi Aditya, the comparison of costs shows the total overall costs at an aggregate level. These are higher for cloud kitchens because all online orders are delivered to customers. Compared to that, a normal restaurant has relatively fewer online orders.
At an individual order level, the delivery costs are nearly same for both.
I quite liked the way cost distribution is mentioned and how the cloud kitchen can embark on reduction at each step. Also, if you can add on how the financial movement would be super interesting to see.
Loved the simplicity of article and infographics explanation.A little more financial analysis and marketing methods will help to understand article more better
A question: Wouldn't there always be a physical limit to the number of stations they can add to the kitchen? For example, if they buy a 300 sq. ft. area for their operations, there will come a time when they won't be able to add more stations right? This is assuming all brands are doing great. Maybe they consider this while buying and have a limit to the number of stations. Maybe I'm missing something.
Great read as always! Loved the Gordon gifs. Thank you :)
So basically the area that a cloud kitchen operates in has sufficient space for 7-8 cooking stations. When they go beyond that, you might need more space. For that I guess Rebel might already have taken a little large space. Or they might rent extra space in the vicinity of existing kitchen to add more stations if the first one is full.
Thanks for the in-depth simplanation. I remember reading a few months ago that Rebel is also launching some sort of an Incubator to fund new brands in this space. Would love to know more!
Great read. Thanks for presenting in such a simple way. One point I had:
The presence of restaurants in Central Location gives them the advantage of branding which has a huge impact on online sales too. Don't you think that should be adjusted in overall cost structure or is it included in the 20%?
As per your article, aggregators charge a higher delivery commission to cloud kitchens. why so? Is it because they choose to set up shop in remoter areas to save on rent?
Hi Aditya, the comparison of costs shows the total overall costs at an aggregate level. These are higher for cloud kitchens because all online orders are delivered to customers. Compared to that, a normal restaurant has relatively fewer online orders.
At an individual order level, the delivery costs are nearly same for both.
This is the simplest article I have read till now.
I quite liked the way cost distribution is mentioned and how the cloud kitchen can embark on reduction at each step. Also, if you can add on how the financial movement would be super interesting to see.
Loved the simplicity of article and infographics explanation.A little more financial analysis and marketing methods will help to understand article more better
Glad you liked it Shivani. And thanks for your feedback. In future articles, will keep that in mind 👍
Great article Azhar... very informative and engaging content.
Thanks Shashank. Happy to know that you liked it
A question: Wouldn't there always be a physical limit to the number of stations they can add to the kitchen? For example, if they buy a 300 sq. ft. area for their operations, there will come a time when they won't be able to add more stations right? This is assuming all brands are doing great. Maybe they consider this while buying and have a limit to the number of stations. Maybe I'm missing something.
Great read as always! Loved the Gordon gifs. Thank you :)
Hi Yash, glad you liked the article.
For your query, actually I wanted to attach a image to show how a cloud kitchen looks like from inside. But cannot attach here. So please check the image in this link : https://www.foodserviceequipmentjournal.com/catering-equipment-industry-calls-for-voice-in-europe-after-brexit/
So basically the area that a cloud kitchen operates in has sufficient space for 7-8 cooking stations. When they go beyond that, you might need more space. For that I guess Rebel might already have taken a little large space. Or they might rent extra space in the vicinity of existing kitchen to add more stations if the first one is full.
Oh, got it. Thanks!
This was a fantastic read. Loved the infographics. Some puns & gifs! Great..
Thanks Dibyajit. Glad that you liked it 🙂
Thanks for the in-depth simplanation. I remember reading a few months ago that Rebel is also launching some sort of an Incubator to fund new brands in this space. Would love to know more!
Sure Hemant. I have not seen much on it yet. Nevertheless, will try to check if I find something and share.
Great read. Thanks for presenting in such a simple way. One point I had:
The presence of restaurants in Central Location gives them the advantage of branding which has a huge impact on online sales too. Don't you think that should be adjusted in overall cost structure or is it included in the 20%?