Tech, ExplainedE-commerce, travel and logistics
Part

Multi-brand cloud kitchen

Five restaurant brands from one kitchen.

INSIDE: CLOUD KITCHENHOW IT WORKS · A MOMO BRAND LAUNCHED FROM A KITCHEN IN INDOREThe kitchenalready cooksbiryani, thalisand wraps underthree brandsPeople within 4km searched formomos 600 timeslast month; only2 restaurantsdeliver themThe kitchen buysa ₹15,000steamer and usesthe ingredientsit already hasTwo weeks later,the momo brandgoes live on thedelivery appsAfter eightweeks: momossell 45orders a day,thalis only 8The thali brandis removed fromthe apps, andits cook movesto momosALSO TALKS TOFood delivery appKitchen display system (KDS)Online order aggregator for restaurantsINSIDE: CLOUD KITCHENHOW IT WORKS · A MOMO BRAND LAUNCHED FROM AKITCHEN IN INDOREThe kitchen already cooksbiryani, thalis and wrapsunder three brandsPeople within 4 kmsearched for momos 600times last month; only 2restaurants deliver themThe kitchen buys a₹15,000 steamer and usesthe ingredients italready hasTwo weeks later, the momobrand goes live on thedelivery appsAfter eight weeks: momossell 45 orders a day,thalis only 8The thali brand isremoved from theapps, and its cookmoves to momosALSO TALKS TOFood delivery appKitchen display system (KDS)Online order aggregatorfor restaurantsINSIDE: CLOUD KITCHEN · A MOMO BRAND LAUNCHEDFROM A KITCHEN IN INDOREThe kitchen already cooks biryani, thalisand wraps under three brands↓People within 4 km searched for momos 600times last month; only 2 restaurantsdeliver them↓The kitchen buys a ₹15,000 steamer anduses the ingredients it already has↓Two weeks later, the momo brand goes liveon the delivery apps↓After eight weeks: momos sell 45 orders aday, thalis only 8↓The thali brand is removed from the apps,and its cook moves to momosALSO TALKS TOFood delivery appKitchen display system (KDS)Online order aggregator for restaurants
A multi-brand cloud kitchen in Indore launches a momo brand after 600 searches go unanswered, and removes a thali brand that has fallen to 8 orders a day.
opens a page inside this one a page in the same scene a page in another scene a concept page a label only, with no page

A multi-brand cloud kitchen is a single kitchen that cooks for several restaurant brands at once, each sold on the delivery apps under its own name, logo and menu. A biryani brand, a pizza brand and a wraps brand may all be cooked by the same team, in the same room, from the same store of ingredients. Most customers do not know that the brands share a kitchen.

Why run several brands from one kitchen? The rent, the cooks and the equipment are paid for only once. Many ingredients are shared: the paneer in a wrap can also go into a biryani. The kitchen can stay busy all day, with one brand for breakfast, another for lunch and a third for late-night orders. Each brand also appears separately in the search results of a food delivery app, so one kitchen gets several chances to be chosen.

The decision to launch a brand comes from data. The delivery apps show the kitchen what people nearby search for and cannot find. If a brand fails, the kitchen can close it quickly. There is no lease to break and no signboard to take down. It simply removes the brand from the apps.

Imagine a kitchen in Indore that cooks three brands: biryani, North Indian thalis and wraps. Its software shows that people within 4 km searched for momos about 600 times last month, but only two restaurants nearby deliver momos. The kitchen already has flour, cabbage, paneer and chicken. It needs only a steamer, which costs about ₹15,000. Two weeks later, it launches a momo brand on the delivery apps. After eight weeks, the momo brand sells 45 orders a day. In the same period, the thali brand has fallen to 8 orders a day. So the kitchen removes the thali brand from the apps, and moves its cook to the momo station.

Running many brands needs careful software in the kitchen. Every order must reach the right cooking station, and the right packaging, with the right brand's sticker. The kitchen display system shows each order with its brand name. The online order aggregator keeps a separate menu for each brand on each app. And demand forecasting has to predict the orders of every brand, because they all draw on the same stock of ingredients.

A multi-brand kitchen is one form of cloud kitchen. A cloud kitchen with a single brand works the same way, but it cannot move its cooks and ingredients between brands as demand changes.

Tech, Explained is a part of ingrid.fyi. Every page explains one piece of technology in plain words.