Part two: You’re thinking of starting your own cloud restaurant — now what?

🧑‍🍳 Earlier this week, we explored the “why” behind the rise of cloud kitchens in Egypt — from the low-overhead appeal of the delivery-only models to the post-pandemic shift in dining habits. We tackled the foundational hurdles of owning your brand narrative and the necessity of testing, even when that means realizing your authentic concept might need a local pivot. But while a solid vision and a validated menu get you through the door, they won’t keep the ovens hot or the orders flowing without a proper backbone.

In the second and final part of our guide, we’re diving into the “how” of making your virtual storefront a reality — how to navigate the red tape, build up the capital you need to survive the zero-revenue phase, and explore digital-first marketing strategies.

Missed the first part? Check it out here.

The logistics

Figure out your resources: If you’re signing with a cloud kitchen provider, you likely won’t have to worry about resources — though that is contingent on the provider’s business model. Some may handle everything from start to finish, and others may leave you with gaps you’ll have to fill. That may include staffing, ingredient sourcing, and marketing. If you’re going solo, finding a location for your kitchen would be a top priority.

Get comfortable with red tape: A cloud restaurant is essentially a restaurant as far as logistics are concerned. But be warned: this will likely be the most difficult phase. You’ll need to obtain an operating license and a commercial license and ensure all health and safety procedures are met. Having counsel is pivotal at this stage. “Hire someone with experience — someone who knows what paperwork is required [for a restaurant]. Since you don’t have to worry about what color the tables will be, you need to focus on your operating procedures and have everything well-documented,” chef Wesam Masoud, founder of The Food Lab, tells us.

Break your piggy bank: Cloud restaurants may be more cost-efficient, but they’re not pro bono. Assuming you’re running the show independently, having apt capital — enough to cover your expenses for an extended period of time — is your safety net. While there’s no formula — and while every venture calls for a different amount of capital depending on its scale and nature — you need to be able to pull from an emergency fund.

“You need to get an example of how much it's going to cost you in a month. That includes your rent, your electricity, your labor costs, and other utilities,” Masoud says. “How much food is going to move through your restaurant every day? How much beef will turn into burgers? What is your estimated food cost on a daily or monthly basis?” Having these estimates mapped out is key to running a successful business, according to Masoud.

Then, “you take [your total monthly cost] and you say, ‘Listen, I'm going to spend; I'm going to make zero money. I will not have a single customer for six months. How much is that going to cost me?’ That's how much money I need to have in the bank.” Masoud adds. Chef Perihan Saleh, founder and head chef at Gracias, concurs, noting that it took her almost three years for her restaurant to start covering itself, owing its survival to her emergency fund.

Spreading the word

Embrace your inner social media guru: Now that logistics are covered and the gears are turning, you’ll need to get the word out on your restaurant, and if you don’t, it’ll all have been in vain. Given that your restaurant exists in the clouds, so do your customers. Social media is your number one priority — both paid and organic content.

For this, you’ll need to hire a professional GenZ’er — or someone who speaks Gen Z fluently. “You’re also going to want to reach out to influencers,” Egyptian F&B consultant Omnia Adel notes. Chef Saleh adds that when reaching out to influencers or potential partners, you’ll want to go the extra mile and make sure every interaction is personalized. When you’re starting off, every single interaction — regardless of how minuscule it may seem — is what builds your brand image in the minds of consumers, Saleh explains.

Know your customer touchpoints: Is your customer finding you on social media? Make sure your branding and your presence speak to your offerings. Are your customers ordering through your own website? You’ll need to invest in making sure it functions seamlessly. Weirdough founder Hussein Sabry recalls investing in his website in the platform’s earliest stages, noting how — aside from streamlining operations — it added to the business’s credibility.

Don’t stop at digital spaces, however. As Sabry tells us, “Word of mouth is the strongest marketing tool you could utilize.” To get the word going, you don’t necessarily need to syphon all your conversation starters through social media. Getting the word out in person could be as easy as throwing your food in the trash… yes, you read that right.

Chef Masoud recalls a peculiar instance in which Red Bull would purposely throw its cans in recycling bins across London. What ensued was passersby subconsciously registering that Red Bull must be a popular drink if so many used cans were being disposed of. Somehow, perhaps magically, sales rocketed. Masoud himself took a page out of Red Bull’s energizing book for his own ventures and saw similar results. TLDR: you can’t go wrong with a guerilla marketing stunt or two.

Delivery apps reign supreme: Being present on popular delivery apps is a privilege to which many great restaurants owe their success — but it comes at a hefty price, one you’ll want to pay. Popular delivery applications like Talabat, El Menus, and Instashop host a comprehensive catalogue of restaurants, and you might be losing out on many potential customers out there if you opt out. “These [aggregators] are essentially a storefront, and you’re paying for digital real estate,” Masoud tells us. The catch? They’ll be taking a hefty cut.

Be ready to pivot

Embrace change: Stagnation is death in the F&B industry, according to Sabry. The entrepreneur highlights the importance of understanding where you’re standing on the product cycle. “If things start going south, you need to ask yourself why. Why am I fading away? Why is the revenue I had a month ago not the same today? Why has feedback taken a dip?” Sabry suggests “changing things up” every now and then — be it through new menu offerings or otherwise.

As such, feedback proves essential not only upon launch but consistently throughout the business’s existence. “So many cloud restaurants pop up and receive a great [amount] of hype only to fade away because of their failure to adapt,” he notes.

Embrace (and expect) failure: Not pessimism, but realism. The truth is, regardless of how carefully calculated your every move may be, things are still very likely to go awry. However, to embrace failure is not to indulge it. You should always be on the lookout for the faults in the system — address them, amend them, and repeat. If all else fails, go back to the drawing board and start all over again.