1) The document discusses starting a virtual or "cloud" kitchen business in India, which involves food preparation and delivery without a dining area. 2) Some benefits of a cloud kitchen business are low startup costs, high profit margins, and the ability to efficiently serve customers in various locations. 3) Several licenses are required to legally operate a cloud kitchen business in India, including an FSSAI food safety license, GST registration, trade license, and eating house license.

1. Virtual
Kitchen
Business
Start your own Cloud Kitechen

2. Overview
Nowadays, every restaurant business, whether new or established choose
to build Cloud Kitchens. As, customers, instead of wanting to Dine in at
Hotels or Restaurants, tend to prefer ordering food at home. Therefore, the
ambit of Virtual Kitchen Business in India has also considerably
increased.Virtual or cloud kitchens are only food delivery platforms. These
kitchens carry out the operations within the premises of a restaurant and do
not have a sitting place and takeaways. Ghost or Dark Kitchens are also the
names of these food delivery businesses.In this blog, we will discuss
the concept of Cloud Kitchen and what are the benefits of these kitchen
spaces.

3. Due to COVID-19 epidemic, this Food Business Model is gaining a lot of
opportunities in both the Indian and International market.
A regular Restaurant Business includes tough
competition in terms of space, high rentals and
escalating costs;
Reason - One
Due to the norms of Social Distancing, the sales
of restaurants have reduced a lot.
Reason - two

4. Legal License required to start a
Cloud Kitchen Business in India
For starting a virtual kitchen business, it is
necessary to obtain a food safety license from
FSSAI. This license remains valid for a
minimum of one year and a maximum of five
years. The main reason to acquire this license
is to ensure food quality and safety.
FSSAI License:
Acquiring GST registration is compulsory
for all the cloud kitchens operating in India.
After registering, a GSTIN (Goods and
Service Tax Identification Number) will be
provided to each food vendor.
GST Registration

5. Trade License:
All the businesses operating in
India needs to get a Trade
License from the Municipal
Office
Trademark
Registration
A Trademark Registration will
assist a food business in lifting its
brand name in the market. Every
business owner must apply for
this registration to protect its
watermark, patterns, logo, and
name.
Fire and Safety
License:
Normally, obtaining this license
is not mandatory for a virtual
kitchen operating in India.
However, it is always suggested
to acquire a Fire NOC for saving
yourself from the future
calamities.

6. Eating House
License
Eating House License is one of
the mandatory licenses
for starting a virtual kitchen
business in India. Licensing
Police Commissioner of the
respective city is responsible for
issuing this License.
Shop and
Establishment
License
An owner needs to obtain Shop
and Establishment License within
30 days from starting a food
business. One can acquire this
license either by visiting the
government portal or by applying
to the labour department of the
state.
Environmental
Clearance
Certificate
Obtaining ECC is a must for
ensuring that the food business is
not causing any negative or
harmful impact on the
environment.

7. BENEFITS OF
RUNNING A
VIRTUAL FOOD
BUSINESS IN
INDIA
Low capital Expenditure: A virtual
kitchen deals with the concept of online
ordering and delivery. It does not involve
sitting space and takeaway facilities. Therefore,
it incurs low capital expenditure than any other
outlet in the restaurant industry.
High-Profit Margins: A cloud kitchen includes
low overhead cost in terms of electricity and
water bills. Moreover, the operation with fewer
people and smaller set-up tends to increase the
profit margins.
Efficient Service: A cloud kitchen involves low
cost and is easy to operate. That means the
owner of these kitchens can start its business in
various places to serve customers effectively and
quickly.

8. TYPES OF CLOUD
KITCHEN
BUSINESS MODELS
• Fresh Menu Business Model
• Independent Cloud Kitchen Model
• Swiggy Access Business Model
• Zomato Kitchen Business Model
• Faasos or Rebel Food Business Model

9. LATEST UPDATES ON
VIRTUAL KITCHEN
BUSINESS
In India, the Online Food Delivery Market is expected to reach
the following figures by 2024:CAGR (Compound Annual
Growth Rate) of 30.55 % ( Revenue Based);10.9 % ( on the basis
of the number of users);Revenue up to Rs 1334.99 Billion;User
Base up to Rs 300.7 Million.

10. Conclusion
Nowadays, the size of the food does not matter, as customers are only
concerned about the ease and the food quality. Therefore, starting a Virtual
Kitchen Business in India is a perfect choice for the budding food business
owners. This format not only guarantees you high-profit margins but also
involves less capital, fixed and marketing cost. Further, as per the recent
report, India is expected to become a hub for online food market by the year
2024. Moreover, due to COVID-19 epidemic [3] , restaurants have started
converting themselves into a virtual or cloud Kitchen. At Swarit Advisors,
our team of experts would assist as well as guide in obtaining all the
mandatory permits. The mandatory permit includes FSSAI license, GST
Registration, and Eating House License, etc.

11. GET IN TOUCH WITH US
www.swaritadvisors.com ho@swaritadvisors.com +91-9821399320
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