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LoansJagat Team

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12 Nov 2025

How to Start a Cloud Kitchen in India: From ₹5,000 to 5-Star Flavours

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“Yaar, soch! Ek dum swadisht biryani sirf app ke click pe. Na tables, na chairs, sirf taste aur paisa!”

It is a Saturday night in Pune. Aarav, a chai-loving techie, just spent ₹450 on a soggy burger that took 52 minutes to arrive. Furious yet inspired, he googles how to start a cloud kitchen and wonders, "What if I made better food, faster, and cheaper?"

One week later, Aarav invests just ₹5,000 on ingredients, packaging, and a second-hand OTG oven. He lists his biryani bowls on a delivery app. Within the first month, he clocks ₹58,000 in sales—pure home-cooked hustle.

Across India, thousands are joining the cloud kitchen revolution, proving you do not need a swanky café or marble countertops to feed the masses. All you need is a strong menu, a clever brand, and a smartphone. How to start a cloud kitchen is no longer a mystery; it is a recipe anyone can master with the right ingredients.

"Jahan chaah wahan cloud kitchen raah!"

From homemakers in Hyderabad to MBA dropouts in Delhi, this guide will spill the spicy secrets on exactly how to start cloud kitchen the smart and desi way.

What is a Cloud Kitchen and Why Should India Care?

A cloud kitchen is a delivery-only restaurant that operates without a dine-in facility. Orders are placed through food delivery platforms or directly via an app or website. 

In India, with a rising demand for home-delivered food, low startup costs, and minimal staff requirements, cloud kitchens are gaining popularity.

“Khud ki kitchen, boss ki salary se zyada kamao!”

Let us break down the exact steps on how to start a cloud kitchen with accurate numbers, real-life hacks, and everything paisa-wise.

Step 1: Choose Your Kitchen Format

There are three popular formats in India:
 

Format

Description

Cost Range (Per Month)

Home Kitchen

Operate from home with FSSAI approval

₹10,000 to ₹20,000

Rented Commercial Space

Lease a dedicated kitchen space

₹25,000 to ₹80,000

Shared Cloud Kitchen Space

Rent a slot in an existing cloud kitchen setup

₹15,000 to ₹35,000


Choose based on your budget, menu, and customer reach.

Step 2: Get Official Licences and Registrations

You need the following in India:
 

Requirement

Description

Where to Apply

Cost

Food Safety Licence

Required under FSSAI

FSSAI Website

₹2,000

GST Registration

For tax compliance

GST Portal

₹0 (if DIY)

Shop and Establishment Act

For running a business legally in any state

Respective State Labour Department Websites

₹1,000-₹3,000

Fire and Safety NOC

Needed if you use commercial gas or electrical equipment

Local Municipal Office

₹2,000-₹5,000


Do not skip these if you want to avoid fines or being delisted from platforms.

“Ek chhoti si kitchen, aur sapna India feed karne ka!”

Step 3: Design a Budget-Friendly Kitchen

No chandeliers, no sofas, only functionality! Here is how Rahul set up his kitchen with just ₹2,50,000.
 

Item

Estimated Cost (₹)

3-Burner Commercial Stove

₹15,000

Stainless Steel Counters

₹30,000

Freezer and Refrigerator

₹35,000

Raw Material (First Stock)

₹50,000

Packaging Material

₹15,000

Cooking Utensils & Tools

₹20,000

Kitchen Staff (2 people)

₹25,000/month

Rental Deposit (3 months)

₹60,000


Total Initial Cost: ₹2,50,000 (excluding monthly recurring expenses)

Step 4: Create a Killer Menu That Delivers Well

Here are the golden rules for cloud kitchen menus:
 

  • Focus on dishes that travel well.
     
  • Avoid items that are soggy, creamy, or overly garnished.
     
  • Indian favourites like biryani, butter chicken, and rajma chawal work great.
     

Pro Tip: Use recyclable, microwave-safe packaging. It makes the food look premium and builds customer loyalty.

“Dost ke shaadi ke khane ka review suno, khud ka menu banao!”

Step 5: Register on Food Aggregators and Delivery Apps

Most Indian cloud kitchens run on apps like:
 

  • Swiggy
     
  • Zomato
     
  • Magicpin
     

They charge commissions between 18% and 30% per order, but they provide massive reach.

Example: If Rahul makes ₹200 on a biryani, and Zomato charges 25%, he earns ₹150. If he receives 30 orders daily, he earns ₹4,500 per day or ₹1,35,000 per month.

Step 6: Market Like a Bollywood Blockbuster

How to start cloud kitchen is not complete without spicy marketing! Use:
 

  • Instagram reels with cooking shots.
     
  • Google My Business listing.
     
  • Discounts on the first five orders.
     
  • Partner with influencers.
     

Example: Priya from Pune offered “Buy 1, Get 1” on her new thali kitchen. Within ten days, she jumped from 5 orders to 70 daily.

“Swad ka jadoo tab chalta hai, jab log jaan paate hain!”

Step 7: Use Tech Tools to Simplify Operations

Use Indian apps like:
 

App Name

Purpose

Website

DotPe

Direct ordering and payments

dotpe.in

Posify

Billing and kitchen display system

posify.in

Zuper

Inventory and staff management

zuper.co


These reduce manual errors, allowing you to focus on the food and the customer.

Step 8: Calculate Your Breakeven Point

Let's say you invest ₹2,50,000 and spend ₹50,000 per month. You price your average dish at ₹200, with a profit of ₹60 per order.

Breakeven Calculation:
 

Description

Value

  • Total Monthly Fixed Cost

  • ₹50,000

  • Profit Per Order

  • ₹60

  • Orders Needed to Break Even

  • 834 per month

  • Orders Per Day

  • 28


So, you must sell 28 dishes per day to break even. That is realistic with strong marketing and food quality.

“Profit kamana hai? To daily ka target bhi set karna padega!”

Step 9: Maintain Hygiene, Taste, and Consistency

Your most significant strength is repeat orders. That only happens when customers know what to expect.
 

  • Use gloves, hairnets, and aprons.
     
  • Label packages clearly with date and time.
     
  • Test all recipes for portion consistency.
     

Remember, a good review brings 10 customers, and a bad one drives 50 away!

Step 10: Scale or Franchise Once You Hit ₹1,00,000 Monthly Profit

Once your kitchen is stable, you can:
 

  • Open another cloud kitchen in a new area.
     
  • Add new brands like breakfast-only or health-focused.
     
  • Offer franchise options.
     

Example: Hyderabad’s “Idli Express” started with ₹3,00,000 and now runs 8 cloud kitchens across South India. Each earns over ₹ 1 lakh per month.

“Ek idea ne badla kismat, ek kitchen ne chhupa hua chef banaya superstar!”

Conclusion: How to Start a Cloud Kitchen and Sizzle in the Indian Market

Starting a cloud kitchen is not just about food; it's about hustle, passion, and innovation. With the proper licenses, clever marketing, an efficient kitchen setup, and a solid menu, you can build a profitable business with an initial investment of less than ₹3,00,000.

From local dishes to gourmet experiments, India’s taste buds are ready. All you need is a little spice, some jugaad, and this guide on how to start cloud kitchen!

Feeling hungry for success? Start your cloud kitchen today. Apni kitchen, apna swag!

Frequently Asked Questions: How to Start a Cloud Kitchen in India

1. How much money is needed to start a cloud kitchen in India?

Starting a cloud kitchen can cost anywhere from ₹1,50,000 to ₹5,00,000, depending on your city, kitchen type, and equipment. A basic home kitchen model may need only ₹1,50,000, while a commercial setup could cross ₹3,00,000, including rent, licences, packaging, and staff salary.

2. Do I need a Food Safety licence even if I operate from home?

Yes, absolutely! Whether you are running a five-star delivery kitchen or cooking butter paneer in your own house, FSSAI registration is mandatory in India. You can apply for it online through the FSSAI official portal for as low as ₹100 per year.

3. Can I run multiple brands from the same cloud kitchen?

Yes, you can! This is called multi-branding. For example, from one kitchen, you can sell North Indian meals under one brand and Chinese food under another. This strategy maximises profits with the same resources. However, ensure that you obtain individual brand registrations and maintain quality consistency.

4. Which delivery platforms are best to register with in India?

The top platforms for Indian cloud kitchens are, Swiggy, Zomato, and Magicpin. Many successful kitchens also create their own websites using platforms like DotPe to accept direct orders and save on commission. Mix and match to reach more customers.

 

 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.

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