Setup Cost & Tech for Cloud Kitchens

Cloud kitchens require less capital than traditional restaurants but demand strategic investment in equipment, location, and technology. A well-planned setup ensures high efficiency and delivery-driven profitability.

1. Setup Cost Breakdown

Kitchen Space: A 300–500 sq. ft. rented unit in a delivery-friendly area costs ₹30,000–₹70,000/month.

Equipment: Commercial ovens, deep freezers, prep counters, and exhaust systems cost ₹3–₹5 lakhs.

Licensing: FSSAI, fire NOC, GST, and health permits total ₹25,000–₹50,000.

Initial Stock & Staff: ₹1–2 lakhs for inventory and team onboarding.
Total estimated cost: ₹5–₹10 lakhs depending on cuisine and location.

2. Technology Essentials

POS Integration: Centralized order management from Zomato, Swiggy, and website.

Kitchen Display Systems (KDS): Track and time each order efficiently.

Inventory Management: Automated systems to prevent waste and stockouts.

Customer Analytics: Data insights on repeat orders, peak hours, and feedback.

CRM Tools: WhatsApp, SMS, and email tools for retention campaigns.

3. Delivery Optimization
Cloud kitchens often use third-party logistics, but investing in branded delivery staff for top areas boosts customer trust.

In summary, cloud kitchens are tech-first businesses. Investing wisely in digital tools and operational flow is key to sustainable growth and profit.