Category: Cloud Kitchen
FINANCIAL INPUT TO START THIS BUSINESS
| Initial Investment: Rs.2,00,000 | Commissions to Aggregators (ZOMATO/SWIGGY): 22% |
| Turnover to Break Even: Rs. 3,25,000 | Gross Profit Margin: 75% |
| Typical Time Requirement to Breakeven: 6 months | Payment Cycle from Aggregators: 10 Days |
| Running Expenses | Per Month | Annually |
|---|---|---|
| Workplace rentals | Rs. 0 | Rs. 0 |
| Staff Cost (1 Staff) | Rs. 12,000 | Rs. 1,44,000 |
| Sundry Expenses | Rs. 3,000 | Rs. 36,000 |
| Advertisement on Zomato & Swiggy | Rs. 3,000 | Rs. 36,000 |
| Total Running Expenses | Rs. 18,000 | Rs. 2,16,000 |
*Initial Investment Breakup: Brand Fee: Rs.100000 Kitchen equipments: Rs.100000
You can operate this business from home. Hence we’ve assumed zero rental cost. Franchisee fee varies based on brand. In this particular case we’ve assumed a franchisee fee of INR 100000 in which one can get multiple brands under the umbrella of “WHAT A SANDWICH”. If you are looking for only on brand, you can start with a franchisee fee only INR 50000. Both material and marketing are taken care of by the Franchisor. They can also deliver material to your doorstep. If you are not able to hire the right labour, the franchisor can help you with that as well
This is a very convenient business model as you can choose the days and time when you want to switch on your business and accept orders on Zomato/Swiggy. For advertisement on Zomato & Swiggy, the typical cost is INR 20 per click
These numbers have been obtained by interviewing cloud kitchen owner in Pune. Your number may very based on your location and other factors. If you want to start a cloud kitchen business you can also talk to an expert business owner. Simply scroll below to schedule your call
Revenue and Profit Projections
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | 5,00,000 | 10,00,000 | 13,00,000 | 15,00,000 | 20,00,000 |
| Net Profit | -25,000 | 0 | 1,00,000 | 2,50,000 | 5,00,000 |