There’s no question that the food industry is constantly evolving, and new technologies are coming out all the time to change how we cook and eat.
One recent trend that has taken off in Saudi Arabia is the use of cloud kitchens and for good reason.
These restaurants offer an alternative to traditional dining establishments that are both convenient and profitable.
All this talk about cloud kitchens has made them one of The Top 5 B2B Trends in 2022!
So what exactly makes this concept so special? And what do you need to know if you’re thinking about choosing a cloud kitchen in Saudi Arabia?
Read on to learn the top 5 things you must know.
What is a Cloud Kitchen?
Cloud kitchens are businesses that operate completely out of a customer’s home or office. They offer food delivery and takeaway, as well as catering services.
This concept is becoming increasingly popular because it allows restaurateurs to control their pricing and location, while also freeing them up from the hassles (and potential risks) associated with running a restaurant in traditional settings.
What’s the ‘cloud kitchen’ hype all about?
Cloud kitchens are a business concept that’s been on the rise lately, and they’re causing quite a stir in the restaurant industry.
These establishments have caused a massive uproar for two main reasons:
- First of all, they’ve opened up new gateways for revenue
- Secondly, they’re taking away jobs from brick-and-mortar restaurants.
The good news is that cloud kitchens are still in their early stages – there’s plenty of room for growth both monetarily and in terms of popularity.
So far, most cloud kitchens have been successful because:
- They offer something unique (cold delivery vs hot delivery)
- They cater to people who don’t want to cook (or can’t cook)
- They offer convenience (you don’t have to leave your house)
How does a cloud kitchen work?
Customers order food online or over the phone, and the restaurant delivers directly to their homes or workplaces.
Not only do these restaurants save on labour costs by not having to employ staff in brick-and-mortar locations, but they also enjoy increased profits.
The Saudi Arabia cloud kitchen market is growing rapidly, and the sector is expected to reach a value of $335.7 million by 2030 with a CAGR of 7.7%.
So far, cloud kitchens have proven to be lucrative businesses. And this trend isn’t slowing down anytime soon; there are already dozens more cloud kitchens planned or underway!
Top 3 Benefits Of Operating A Cloud Kitchen
There are several benefits to operating a cloud kitchen:
- First, you can avoid high rent costs and other overhead expenses traditionally incurred by restaurants.
- Second, you don’t need any special licenses or permits – all you need is an internet connection and some kitchen space!
- Third, cloud kitchens allow restaurateurs to focus on marketing and guest service rather than dealing with the day-to-day operations of running a restaurant.
Top 5 Things to Consider When Choosing a Cloud Kitchen in Saudi Arabia
Whether you’re a restaurateur looking for an innovative way to differentiate your business or simply curious about this new trend, it’s worth taking the time to learn about cloud kitchens. Here are five things to keep in mind when choosing one:
#1 Contract Terms
While it is true that some cloud kitchen contracts are longer than others, it’s important to consider the terms of a contract before signing on the dotted line.
A one- or two-year term may be long, but if the contract is broken there are penalties in place–so make sure you’re comfortable with those details beforehand.
That said, many customers choose cloud kitchens because they want to entertain guests and keep them nearby.
A short-term agreement may not work out in these cases. It’s always good to have contingencies planned for any situation!
#2 License and Registration
Before setting up a cloud kitchen, it is important to secure appropriate licenses. Two major licenses that need to be secured before making any investment in a cloud kitchen are:
- Trade License
It allows business operators to carry out their activities without fear of getting into legal trouble in the future.
- Food License
It authorizes the sale of food products from the cloud kitchen premises.
Without these licenses, selling food from your own home would not be legal.
Both licensing procedures can be time-consuming and cumbersome, so it is advisable to hire an agent who can help you complete these tasks quickly and easily while you focus on running your business properly.
Location is key when it comes to a successful cloud kitchen.
The closer the restaurant is to where diners live and work, the more likely they are to frequent it. And, as we all know, location truly is key in the food industry!
By catering directly to busy city dwellers with delicious food that’s convenient and easy to access, you can guarantee success.
#4 Kitchen Apparatus
When it comes to the kitchen equipment, quality is key. You need good-quality appliances and cooking ranges to make your cloud kitchen run smoothly. It’s also important to have the essentials – from refrigerators and ovens to exhaust systems and fire extinguishers – in order for your culinary creations to come out well.
When choosing appliances for your cloud kitchen, take into account the types of cuisine you plan on serving.
In addition to appliance requirements, be sure to consider other important factors such as space availability and safety precautions.
- Make sure all areas in which people are working are well-lit and free from hazards (such as sharp edges),
- Always wear safe clothing when handling knives or any other dangerous objects.
- Make sure that all appliances are properly installed according to the manufacturer’s instructions so that they operate smoothly throughout the duration of use.
#5 Choosing the Right Technology for your Cloud Kitchen
Choosing the right technology is essential for success in today’s business world. Not only can a wrong choice impact your bottom line, but it can also lead to frustrating experiences and ineffective systems.
That’s why Blink offers a cloud-based ordering system that streamlines everything from brand management to restaurant operations.
With Blink, you get:
- A branded mobile app that helps customers order and track their orders in one place, no matter where they are located.
- A website that provides the same level of detail as the mobile app, but with more versatility (including custom menus and branding).
- Built-in fleet management technology that allows you to keep track of who is working what shifts when, how many hours they’re working each week, and more importantly – whether or not they’re on schedule!
- CRM tools that allow you to manage customer data easily and effectively across multiple channels (email marketing campaigns included!).
Most importantly though – all of this is integrated with Blink’s end-to-end business intelligence platform so you always have the information you need at your fingertips to make informed decisions about your cloud kitchen operation.
Get An Edge Over Your Competitors – with Blink!
Blink is a powerful and affordable restaurant ordering system that gives your business the branding and online presence it needs to grow. It’s easy to use, so you can start building your digital journey right away.
3 Reasons Why You Should Choose Blink
- Customer Data Ownership
With Blink, you get customer data ownership. You can communicate directly with your customers without third-party masking, ensuring that the conversation is transparent and for the benefit of both parties. This gives you greater control over how your customers are treated and allows you to serve them better in future interactions.
- Speed To Market
With Blink, you can quickly create a branded mobile app or website for your food business.
Plus, our in-house technical support team will help you get started on the right foot, no matter what level of experience you have with digital marketing.
- No Heavy Commissions
Blink is different from other content aggregators because we will never charge hefty commissions or hidden fees. With Blink, you own your revenue and only pay for what you use.
3 Reasons Why Restaurants Seem Opposed To This Novel Business Model?
- There’s still uncertainty over how profitable cloud kitchens actually are.
- Customers may be uncomfortable dining out at homes or offices.
- Chefs might not be comfortable working exclusively from remote locations.
However, as more people become aware of the benefits cloud kitchens have to offer, the opposition will slowly disappear and these innovative businesses will continue thriving into the future!
Cloud kitchens are the latest trend in food services these days. This is mainly because of their efficiency and low maintenance required for running a business.
For customers, these kitchens provide a convenient and affordable way to get their food.
Are you looking to start a business in the Kingdom?
If you answered yes, then you’ll want to check out Blink.
We offer a cloud kitchen that is perfect for businesses of all sizes. With our easy-to-use platform, you can get started in no time at all.
So what are you waiting for?
Start making smarter choices today by choosing Blink for your cloud kitchen