The tremendous spike in the rate of virtual kitchen business in India provides an ample number of opportunities to food business entrepreneurs. There are many names for virtual kitchens, such as shared, ghost and cloud kitchens. Virtual kitchen is the delivery-only food business that performs its operations within the premises of restaurants. It lacks the physical space for a dine-in facility.
However, it is not a new concept; many restaurants operating abroad has already ventured into this field long back. Advancements in technology and change in customer eating habits have accelerated the growth of the delivery-only model with more and more restaurants opting for online Pvt. Ltd. company registration India.
Customers take more pleasure while being at home and having the comfort of getting food at their doorstep. The function of such kitchens relies on online orders on the apps or websites of restaurants or online orders via third-party food delivery apps.Foods That Cause Inflammation. Could kitchens have been gaining a lot of opportunities amidst the pandemic in India and abroad?
Legal compliances for initiating a virtual kitchen business in India.
FSSAI food license.
It is the first legal requirement to initiate a virtual kitchen. One would need to get an FSSAI license from the apex food regulatory body. FSSAI provides confidence to the customers that restaurants’ food items are in line with food safety standards of India’s protocols and safe to intake. The period of this license can range from one to five years, and it is to be renewed compulsorily after the expiry.
GST registration.
It is compulsory for running a virtual kitchen business in India. All businesses should get themselves registered under the GST regime. The filing of GST should take place promptly. It helps in getting licensed vendors. If all the parties manage to obtain a GST number, GST will reduce the tax amount.
Trade license.
All the businesses, including those who have ventured out virtual or cloud kitchen in India, is obliged to get a trade license. By furnishing all the required documents, they can be obtained from the local municipal office.
Trademark registration.
Virtual kitchens should prioritize trademark registration as strategies and ideas will not increase the number of customers. Still, it is the brand name that would do the work and attract customers to your business. Business owners must submit trademark applications for wordmark, name, logo and patterns to create a value of brand and identity while protecting it.
Fire and safety license.
A fire and safety license is not compulsory for FBOs to initiate a virtual kitchen in India. Still, it’s advisable to do so to save yourself from future troubles as it is an integral part of the law, and every workplace should abide by it.
Eating house license.
It is necessary to obtain an eating house license in India. To open an eating house, it is crucial to opt for online FSSAI registration. Licensing police commissioner of the city is the person responsible for allocating this license.
Shop and establishment license.
Obtaining a shop and establishment license is compulsory for food business entrepreneurs. One has to submit an application in the stipulated time of one month of initiation of business. It can be submitted in two ways;
– Visiting the department of labour’s office of concerned state.
– Visiting the concerned state department of the labour’s government website.
It has to be filed to the chief inspector with documents and fees.
Certificate of environmental clearance.
Obtaining a certificate of environmental clearance is compulsory for restaurant business owners to make sure that all the operations pertaining to the food business are not causing any negative or harmful impact on the environment.
Advantages of virtual kitchens.
– Virtual kitchens in India involve low overhead costs.
– It offers freedom and flexibility to the business.
– Advertising becomes cheaper.
– It requires low capital expenditure to start the business.
– Due to its demand, it can be expanded later on.
Types of virtual kitchen business model.
Fresh-menu business model.
It consists of one brand with a single kitchen. Nevertheless, there are various outlets as well as an existing storefront. It is an admixture of virtual kitchens and takeaway restaurants. Customers get the freedom to put their feet in and observe the food getting prepped. Even customers would enjoy the entire experience.
Independent cloud kitchen model.
It is known as the original kitchen model. Here, one kitchen serves a single brand. There will be no seating arrangement and storefront. This is the model by which restaurant business owners can avoid high rental space by not offering a dine-in facility. Lately, it has been in demand quite significantly.
Swiggy access business model.
In the food industry, this business model is known as the shell. It is a cloud kitchen customised with infrastructures like ventilation, gas pipeline and drainage. Swiggy rules everything here. Restaurants can rent this kitchen space and take advantage of the ordering food platform offered by Swiggy.
Rebel foods or faasos business model.
In one single kitchen, various brands offer a wide range of cuisines. Though various kitchens would be available in the city, there would be a lack of dine-in space. Based on the data intelligence like cuisines in demand, supply, available demand, customer preference, and so forth. There would be no storefront in this model too.
Due to the pandemic, virtual kitchens are in great demand in India. It does not matter you are a newcomer or an existing player in the world of virtual kitchens; it would surely give you various benefits.
