How to start a Cloud Kitchen in India: The Definitive Guide (2021)
Cloud Kitchen are digital restaurants that accept orders through online ordering systems and offer no dine-in facility. Given the present situation of the Covid pandemic, cloud kitchens have had an acute advantage when food deliveries became a go-to option for the entire nation.
Often referred to as Dark Kitchens, Satellite Kitchens, and Virtual Restaurants, these cloud-based restaurants can either have their own website/ app for taking up orders or these can get listed with various food delivery platforms like Swiggy, Zomato, etc.
The top 10 examples of Cloud Kitchens are Faasos, Behrouz Biryani, Oven Story, Box8, MOJO Pizza, Biryani by Kilo, Fresh Menu, Firangi Bake, Khichdi Experiment, Sweet Truth.
This is a complete guide on how to start a cloud kitchen in India in 2021
In this new guide, you’ll learn about the Registration and Licenses required for Cloud Kitchen in India, documents required for getting the licenses, location requirement, online food ordering system, Raw Material, Order Packaging, Storage requirement, and marketing your cloud kitchen.
1. Finalizing Location of the Cloud Kitchen
The location is something, where a considerable amount of expenses is saved as the cloud kitchen restaurants, have nothing to do with footfalls, parking space, and high-end sites. But, it has lots to do with proper hygiene and sanitation.
As under a cloud kitchen, one does not need to invest much money in the property. It can be easily be set up in a 250-300 Sq Ft room or any place as suitable to the owner.
2. Registration and Licenses required for Cloud Kitchen in India
Here are the list of all (mandatory and optional) Registration and Licenses required to start a Cloud Kitchen in India in 2021
a) FSSAI (Food Safety and Standards Authority of India) License for Cloud Kitchen (Mandatory)
FSSAI license is mandatory for food-related businesses like cloud kitchen. The license period ranges from a minimum of 1 year to a maximum of 5 years which has to be renewed before the expiry date of the license.
FSSAI issues 3 licenses based on the nature of the food business and turnover:
- Registration: For Turnover less than ₹12 Lakh
- State License: For Turnover between ₹12 Lakh to ₹20 Crore
- Central License: For Turnover above ₹20 Crore
Apply for FSSAI License. Click Here
Documents required for FSSAI License of Cloud Kitchen
For basic FSSAI Registration
- Passport size photograph
- Identity Proof (PAN Card)
- Address Proof (Aadhaar Card, Passport, DL)
- Address proof of the place of business (Electricity Bill along with Rent Agreement, if any)
For State and Central FSSAI License
- Passport size photograph
- Identity Proof (PAN Card)
- Address Proof (Aadhaar Card, Passport, DL)
- List of Food Category
- Layout Plan
- List of equipment
- NOC form Municipality
- Master Documents, if the company (COI, MOA, AOA, List of Directors)
- Water Test Report
b) GST Registration for Cloud Kitchen (Mandatory)
Cloud kitchen business must get a GST Registration. Goods and Services Tax is an indirect tax levied on the supply of goods and services. It came into force w.e.f July 01, 2017. Besides replacing numerous indirect taxes which earlier formed a major part of the taxation system in India, it has created the concept of one tax, one nation. GST is a destination-based tax that is levied on value addition.
GST registration is mandatory for those suppliers whose turnover exceeds the prescribed limit. For those who are dealing in goods and those who are providing services, the statutory limit is Rs. 40 lakhs and Rs. 20 lakhs respectively.
Apply for GST Registration, Click Here
Documents required for GST Registration of Cloud Kitchen
- PAN Card of the Entity
- PAN and Aadhaar of the Proprietor/ Partners/ Directors
- DSC of Partners/ Directors
- Bank Statement of the entity or individual (in case of the proprietor)
- Business Address Proof (Electricity bill)
- Rent Agreement, if premises rented
- Registration Certificate of the Entity
- Photograph of the Proprietor/ Partners/
c) Trade License for Cloud Kitchen (Mandatory)
Trade License is a license issued by the Municipal Corporation of a State to ensure that the business activities are well regulated and that they do not pose any threat or health hazard in the area where the business operates.
Apply For Trade License, Click Here
Documents required for Trade License of Cloud Kitchen
- Trade Premises layout plan
- PAN Card
- Address Proof of the applicant (Aadhaar, Voter ID, Passport)
- Premises proof
- NOC from the owner and Rental or Lease Agreement, if premises rented
- Property Tax payment receipt
- Khata Extract
- Khata Certificate
- NOC from an immediate neighbor
d) Fire and Safety License for Cloud Kitchen (Mandatory)
It is mandatory for cloud kitchen businesses model to have a Fire and Safety License. This is linked with the legal provision and it’s surely linked with Human safety for not only the owner but for all those who are working there. This means that mishappenings never come invited or with a date before it will happen. Working at a place where the use of fire is undeniable is important for the safety of the people working there.
Documents required for Fire and Safety license of Cloud Kitchen
- Site Plan
- Ground Floor Plan
- Built-up area
- Elevation
- Schematic drawing of firefighting system
- Schematic drawing of fire detecting system
e) Shop and Establishment License for Cloud Kitchen (Mandatory)
Every Cloud Kitchen must register under the Shop and Establishment Act. The license granted to the business confirms their adherence to the working hours, weekly/monthly off, payment of wages, terms and conditions of employment, holidays, leave, etc. of persons employed in shops and commercial establishments.
Documents required for Shop and Establishment License of Cloud Kitchen
- Utility bill of the business address
- PAN of the business
- Bank Account details along with a canceled cheque
- Company documents (MOA and AOA)
- Photograph, ID proof, and address proof of Directors/ Partners
- Details of Employees
f) Company Registration for Cloud Kitchen (Optional)
Although not mandatory to register your cloud kitchen business as a corporate entity but the host of benefits that a registered company offers makes it the most desirable model for operating your cloud kitchen business. Also, if you are looking to raise investment rounds from the seed investors which is something you would like to look forward to as it is difficult to manage these businesses by bootstrapping, it is a pre-requisite to get your business registered as a company.
One important factor to be considered while setting up your cloud kitchen business would be to decide on the type of business ownership. The following are the types of business ownership/ structures:
For more detailed information on the different types of company registrations, their document requirement, their Pros, and Cons. Click Here
g) Trademark Registration for Cloud Kitchen (Optional)
Although this is optional but given the legal recognition and protection against the unauthorized use of the business name, makes the Trademark Registration an important license.
Trademark gives the business its own unique identity or image which will be completely different from others and will only represent the owner and the business. The trademark contains the business name which will be the same name mentioned on the legal documents and under the name in which the business is running. It can even be a symbol or a mark.
Apply for Trademark Registration, Click Here
Documents required for Trademark registration of Cloud Kitchen
- Brand Name/ Logo
- PAN Card of the Applicant
- Address proof of the Applicant
3. Online food ordering system for your Cloud Kitchen
As the whole concept of cloud kitchen is based on online acceptance of orders, it is very important to decide on whether the orders are to be accepted through your own website/app or the online food delivery platforms like zomato and swiggy or both i.e. zomato cloud kitchen or swiggy cloud kitchen. Also, a robust sales managing database needs to be in place for your website/app.
how to register cloud kitchen on zomato (2021): zomato cloud kitchen
If any restaurant is not found in the Zomato Listing, the cloud kitchen business owner can intimate by performing the given steps. Here are the steps to register your cloud kitchen on Zomato and become a zomato cloud kitchen
Step 1: Add your cloud kitchen in Zomato Listing
Visit the add restaurant link and fill the registration form with the restaurant name, phone number, city, etc. Then click on Add Restaurant to add the restaurant to the Zomato Listing
Step 2: Keep your legal documents ready
Once submitting the form, a Zomato executive will visit and collect documents such as PAN Card, Aadhar card, Copy of FSSAI registration, take pictures of the restaurant, etc.
Step 3: Once Paperwork was done and then go live
On completing the restaurant verification, your restaurant will be added. Your zomato cloud kitchen will be live. In case of any confusion, you can reach out to Zomato via email at restaurants@zomato.com
how to register cloud kitchen on Swiggy (2021): Swiggy Cloud Kitchen
If any restaurant is not found in the Swiggy Listing, the cloud kitchen business owner can intimate by performing the given steps. Here are the steps to register your cloud kitchen on Swiggy and become a swiggy cloud kitchen
Step 1: Add your cloud kitchen in Swiggy Listing
Visit the Partner with Us link and fill the registration form with the restaurant name, phone number, city, etc. Submit the soft copy of legal document like FSSAI License copy, Aadhar copy (for KYC), Your Restaurant Menu, Bank Details, GSTIN (optional), PAN card copy, Cancelled Cheque.
Step 2: Keep your legal documents ready
Once submitting the form, a Swiggy Sales executive will visit and collect documents i.e. FSSAI License copy, Aadhar copy (for KYC), Your Restaurant Menu, Bank Details, GSTIN (optional), PAN card copy, Cancelled Cheque
Step 3: Once Paperwork was done and then go live
On completing the restaurant verification, your restaurant will be added. Your swiggy cloud kitchen will be live. Completing the partner registration will take 2 to 3 weeks
4. Order Packaging
Order packaging is one of the most attractive things to the customer.
- Different food requires different packaging style for instances drinks and shakes required a sealed cup or a bottle packaging but eatable food it requires a different packaging.
- This packaging doesn’t just end here it needs more than that. The whole thing like a straw, spoon, or if any plate is there should be sanitized and in a proper condition.
- Everything should be sealed and food should be fresh. One can even get in an agreement with delivery agents like Zomato, Swiggy, etc which can help in delivering the products easily to the customers at their doorstep.
5. Marketing your cloud kitchen
In cloud kitchen there is no dine-in facility and relies solely on online and telephone food orders, hence promoting the business through digital marketing is important. One can even hire a digital marketing service provider or you can even have your in-house IT team.
Conclusion
In this pandemic era, there is a growing preference for more home-delivered foods and cloud kitchens have leveled up to meet this demand. The cloud kitchen business is still evolving and in no time this sector is expected to grow exponentially in terms of market and revenue as well.
License for cloud kitchen in India made simple by Advisorate
