A Study on Financial Feasibility of Cloud Kitchen Firms in Hyderabad Region in Telangana, India

Abstract

Cloud kitchens are commercial kitchens that prepare food only for delivery purpose and do not provide dine-in facility for customers. In the cloud kitchen model, a brand owns or rents a space where its chefs work and uses its own or third-party order and delivery systems. It may also provide a takeaway service where customers can wait to collect their food. The cost incurred to establish a cloud kitchen is much lesser than conventional restaurant and can be situated within a small area and it has less operational costs due to which cloud kitchens are more profitable than normal restaurants. In this perspective, the study is conducted to analyze the financial viability of cloud kitchen firms. Hyderabad city was preferred as the study area. For the analysis, data was collected through personal interviews from the selected cloud kitchen firms with the help of structured questionnaire. Data regarding the establishment and operational costs of cloud kitchen firms are taken from cloud kitchen. The analytical tools NPV and B: C ratios are used to know the financial feasibility of the cloud kitchen firms.