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Cloud Kitchen Business

क्लाउड किचन व्यवसाय · क्लाउड किचन व्यवसाय

Run a delivery-only kitchen with no dining area, taking orders through food apps and direct WhatsApp orders. Low rent, high app commission.

₹5–10 lakhPrices not yet confirmed with suppliers

Investment

₹5.9 lakh

Profit a month*

₹32,000

Space
300 sq ft
Staff
3 + you

*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.

A cloud kitchen cooks food only for delivery. There are no tables or waiters, so it can run from a small back-lane unit with a cook and a couple of helpers. Orders come from food delivery apps and, over time, from direct customers. It suits someone who can cook or manage a cook, keep quality steady and watch numbers every day. Money is made on repeat orders for a short menu done well. The hard parts are real: apps take roughly a fifth to a third of each order, visibility often has to be bought with discounts and ads, ratings can fall fast after a few bad orders, and many new kitchens close in the first year.

Skills needed: Cooking or kitchen management, food costing, hygiene, and comfort with app dashboards, offers and ratings.

Profit calculator

Change the numbers to match your town

44 order/day: Delivered order (average menu value about ₹280)

Add-ons

Total investment

₹5.86 lakh

Your own money

₹58,568

Subsidy

—

Bank loan

₹5.27 lakh

Mudra Tarun

A typical month in year 2

Sales₹2,64,000
Raw material & packing−₹1,38,600
Electricity−₹8,220
Salaries−₹46,200
Rent−₹21,000
Other running costs−₹17,850
Operating profit₹32,130
Loan instalment (EMI)−₹12,290
You keep each month₹19,840

After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.

Break-even at 45% capacityDSCR 3.54 (banks like ≥1.5)Payback ≈ 2.2 years

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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.

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Investment breakdown

Machinery & equipmentPrice
Commercial two-burner gas range × 2Stainless steel, LPG₹40,000₹14,000–₹42,000
Exhaust hood, ducting and blower₹60,000
Deep freezer, about 300 litre₹30,000
Commercial refrigerator₹35,000
Stainless-steel work tables and sink unit × 3₹30,000₹7,000–₹15,000
Mixer-grinder, microwave and small appliances₹30,000
Utensils, storage containers and racks₹45,000
Tablet, bill printer and POS software set-up₹25,000
Tandoor or pizza oven (menu dependent)add-on₹50,000
Machinery & equipment (without add-ons)₹2,95,000
Rent deposit (three months)₹60,000
FSSAI, Shop Act and other registrations₹8,000
Menu photos, branding and packaging design₹20,000
Gas line, plumbing and electrical work₹30,000
App onboarding and launch offers₹15,000
Working capital 5 days of raw material, 7 days of credit to buyers, 1 month of expenses₹1,57,680
Total project cost₹5,85,680

Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.

Cost and margin per unit

Delivered order (average menu value about ₹280) (per order)₹
Food ingredients (about 30% of menu value)84.00
Containers, bags, cutlery and tape15.00
Cooking gas6.00
Material cost105.00
Selling price200.00
Margin before running costs95.00 (48%)

Price is what reaches you after app commission and charges of roughly 25–30% of menu value; your own rate is in your partner agreement. Direct orders keep more but need your own delivery.

Space, power and staff

300 sq ft

Rented shop · rent ≈ ₹20,000/month

Rent for a small unit in a city or large town within 3–5 km of dense housing or offices. No frontage needed, but riders must be able to park and collect.

6 kW, single-phase

Bill ≈ ₹12,000/month at full capacity

3 staff + you

  • 1 × Cook: ₹20,000
  • 2 × Kitchen helpers / packers: ₹12,000

Licences and registrations

FSSAI registration / licence

mandatory

When: Before you list on any app or sell · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit

Food apps ask for your FSSAI number at onboarding. Check the current turnover limit for basic registration on foscos.fssai.gov.in.

Shop and Establishment registration

mandatory

When: Within the period your state sets after opening · Cost: Small fee; varies by state

GST registration

if applicable

When: Ask a CA before you start · Cost: Free

For orders through food apps, the app generally collects and pays the 5% GST on restaurant service. Whether you must register depends on your total turnover and direct sales; confirm with a CA.

Local body health / trade licence

if applicable

When: Before opening · Cost: Varies by municipality

Fire safety NOC

if applicable

When: As your local rules require for commercial LPG use · Cost: Varies

Udyam registration

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

How it works

  1. Fix a short menu and cost every dish by weight.
  2. Buy and prepare ingredients (gravies, marination, chopping) before peak hours.
  3. Accept orders on the app tablet; cook and assemble to order.
  4. Pack securely, label and hand over to the rider within the promised time.
  5. Check ratings, complaints and food cost every day; reconcile weekly app payouts.

Loan route

Mudra loan (Tarun)

Own money ₹58,568 · Loan ₹5.27 lakh · EMI ≈ ₹12,290

No collateral, no subsidy.

How Mudra works

PMEGP (new units)

Subsidy ₹87,852 (general, urban) to ₹2.05 lakh (special category, rural). EMI ≈ ₹10,242–₹8,193.

Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.

How PMEGP works

Assumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).

Who buys and how to sell

Buyers

  • Office workers and students ordering on apps
  • Families ordering dinner and weekend meals
  • Hostels and paying guests
  • Small party and bulk orders
  • Monthly meal subscribers

Ways to sell

  • Food delivery apps
  • ONDC-based buyer apps
  • Direct WhatsApp and phone orders with your own delivery
  • Leaflets and society groups for subscriptions

Season: Orders rise on weekends, in the monsoon and during big matches and festivals; they dip when offices and colleges are closed.

Competition: Very crowded in every city. Chains and funded brands run several menus from one kitchen. A small kitchen needs one clear speciality and consistent quality.

Risks and how to handle them

App commission, discounts and ads eat the margin

Price the menu with commission in mind, track profit per order, and move repeat customers to direct ordering.

Low visibility or a ratings drop cuts orders overnight

Keep the menu short, pack well, answer complaints quickly and never accept more orders than the kitchen can cook on time.

The cook leaves and taste changes

Standardise recipes with weights and photos, and train a second person on every dish.

Food safety complaint or kitchen fire

Follow FSSAI hygiene rules, date-label stored food, service gas lines and keep extinguishers.

Tips from the trade

  • Choose food that travels well for 30 minutes; test it by eating a packed order after half an hour.
  • Location matters even without a shopfront: apps show you only to customers within a few kilometres.
  • Keep six months of rent and salaries in reserve; orders take time to build.

Real examples

Rebel Foods (Faasos, Behrouz Biryani)

Started as a Pune roll shop in 2011 and shifted to delivery-only kitchens running many brands.

Source

Questions people ask

Can I run a cloud kitchen from my home kitchen?+

Many people start that way with an FSSAI registration, and apps do list home kitchens. Check your housing society rules and local body requirements, and note that commercial LPG use at home has its own safety rules.

How much commission do food apps charge?+

It varies by city, restaurant and plan. Published guides put it at roughly 18% to 35% of order value, plus payment and other charges. Use the figure in your own partner agreement.

How much investment is needed to start a cloud kitchen business?+

About ₹5.86 lakh for a small unit: ₹2.95 lakh for machinery and equipment, ₹1.33 lakh for set-up costs and ₹1.58 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a cloud kitchen business make per month?+

At 55% of capacity, sales are about ₹2.64 lakh a month and operating profit about ₹32,130 before the loan instalment. After an EMI of about ₹12,290, the owner keeps about ₹19,840 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Can I get a Mudra loan or PMEGP subsidy for cloud kitchen?+

With a project cost of about ₹5.86 lakh, the bank loan of about ₹5.27 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹2.05 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.

What licences are required for cloud kitchen?+

Mandatory: FSSAI registration / licence, Shop and Establishment registration. Depending on your set-up you may also need: GST registration, Local body health / trade licence, Fire safety NOC, Udyam registration.

Similar businesses

Sources

Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.

Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.