Written By: Gouri Ghosh

Instead of going to the food shop, now people prefer to order online through Zomato, swiggy and other apps. This change is giving a new direction to the entire food business.

At the same time, in a traditional food business, people need to invest around 30-50 lakhs or even more. But this is where a cloud kitchen business is giving a new chance to entrepreneurs. With this, people can save a lot on rent and operational costs. This is why a new entrepreneur is also looking for a cloud kitchen franchise business in India.

In this blog, you will get to know about the multi-brand cloud kitchen strategy, how you can run 3 or more brands with a single kitchen, and how you can do this within a budget of 15 lakhs.

What is a Multi-Brand Cloud Kitchen Strategy?

When we say ‘multi-brand cloud kitchen strategy,’ it means operating different food brands from the same kitchen. Instead of investing in different outlets, you can simply use the same kitchen to operate different food brands and sell different types of food.

• One kitchen
•  multiple brands

For instance, you can operate:

• One brand of biryani
•  one brand of fast food
• one brand of desserts/beverages.

The importance of the ‘multi-brand cloud kitchen strategy’ lies in the fact that you would be able to get the most out of your investment. Instead of depending on one brand, you would be able to create different revenue channels from the same kitchen.

Why This Strategy is Powerful for Franchise Buyers

When you are considering cloud kitchen franchises, this strategy can alter your perspective on your investment.

• Multiple Income Streams: You are not dependent on one brand, and therefore, you can make money from different types of customers.
• Better Utilization of Your Kitchen: Your rental, employees, and kitchen costs remain the same, but your income generation increases.
• Less Risk: If one brand does not do well, the other brands can still help you make money.
• More Income: You are using one kitchen to make more money, rather than relying on one brand.

Large companies use this strategy, and you can also do this even if your budget is smaller.

Can You Really Start 3+ Brands Under ₹15 Lakhs?

This is the most important question if you are planning to invest in a cloud kitchen franchise business under an investment of 15 lakhs.

The honest answer is, yes, you can really start 3+ brands under ₹15 lakhs, but that is if you are planning to invest wisely. Many people, especially newbies, think that they need to invest in multiple high-end brands, and that is when the investment starts to go over ₹30-50 lakhs. It is then that people start to make mistakes.

Here is what you need to know:

Premium Franchise Trap: If you are planning to invest in three high-end brands, then you are sure to end up spending over ₹30-50 lakhs, and that is when people start to make mistakes.

Smart Brand Mix: You need to invest in one brand that offers you visibility and trust.

Optimized kitchen setup: It is advisable to set up your kitchen in such a way that you can offer multiple cuisines with the same equipment and staff.

Budget control: By having one franchise and two in-house brands, you can manage your expenses within ₹10-15 lakhs.

The basic idea for you is simple. You do not have to follow big brands in an identical manner. You simply have to follow them in terms of multiple brands, but in a cost-effective manner. That is how you can start your cloud kitchen business in India with low capital.

What is the Smart ₹15 Lakh Strategy?

This is where execution plays a crucial role. When you think about investing in cloud kitchen franchises in India and also operate with different brands, then you have to plan well before executing. You can start with a low budget also.

The steps are:

Step 1: Start a business with a single Kitchen setup

You don’t need to start multiple kitchens; starting small is a smarter move.

• Compact setup: You can start a business with a 300-500 sq ft kitchen, which is sufficient to run multiple brands.
• Delivery focus: You need to focus only on online orders, and that is a cost-saving strategy.
• Cost advantage: You can reduce the cost of setting up a business because you are starting a smaller business.

Step 2: Choose the correct franchise

This is an essential franchise choice for your business.

• Affordable Franchises: You have to select 2-3 affordable franchise brands. Don’t choose premium quality brands. 
• Category : In this phase select a different category of meals option that will fulfill your customers requirement.
• Balanced Mix: This is a strategy where you can fulfill different customer requirements without increasing costs significantly.

Step 3: Select Compatible Cuisines

Not all franchises are compatible with each other, and hence one needs to be very particular about this.

• Shared Resources: It is important that one selects brands that can share resources, such as ingredients and processes.
• Efficient Use of Equipment: Compatible cuisines also help one make efficient use of the equipment, as one can use the same equipment for different brands.
• Practical Combinations: Biryani and North Indian cuisine, fast food and dessert, are practical combinations that can be made to maximize order size.

Step 4: Share Everything

The cost is the most important factor that one needs to take care of while implementing this strategy.

• Shared Resources: The same staff can be used to make different cuisines for different brands.
• Shared Equipment: It is important that one does not end up buying duplicate equipment, and hence sharing is encouraged.
• Centralized Inventory: Centralized inventory also helps one reduce costs, as one can take care of the inventory for all brands at one go.

If one follows this strategy, one can ensure that the cloud kitchen franchise cost is maintained while running multiple brands efficiently. This is the strategy that helps one start a cloud kitchen franchise for less than 15 lakhs.

Investment Breakdown Under ₹15 Lakhs

It is important to understand the cost structure while you plan your cloud kitchen franchise business in India. It would help you manage your expenses and avoid undue pressure on your finances during the initial days.

Here is a realistic investment breakdown for your cloud kitchen franchise business:  

• Kitchen Setup: You would require an investment of ₹4-6 Lakhs for setting up your kitchen, including space preparation.
• Equipment: You would require an investment of ₹3-4 Lakhs for equipment purchases.
• Franchise Fee: If you are looking for a budget-friendly franchise, you can expect to pay ₹2-5 Lakhs for your franchise.
• Licenses and Onboarding: You would require an investment of ₹1-2 Lakhs for FSSAI licenses and registrations.
• Working capital: You must keep ₹2-3 lakhs aside for smooth day-to-day operations.

One common mistake many new investors make is not considering the importance of working capital. In the initial stages, you will spend money on marketing, discounting, and day-to-day operations before your orders start coming in, and hence this is important.  

How You Will Get Orders?

The maximum cloud kitchen depends on the food delivery partner. If you want to get more orders you have to focus:

• Review: High ratings give you to get more customers and gain trust .
• Pricing: Pricing is important, and the prices need to be such that people are willing to try your food.
• Offers and Discounts: Offers and discounts are a good strategy to get orders, especially when you are new.
• Paid Promotions: Paid promotions through these aggregators also help, and you can get more orders through these ads.

There is one important thing to understand. The aggregators charge a commission, and offering discounts may affect your profits. So, pricing is an important factor to ensure a smooth business.

Profit Model: What You Can Realistically Earn

Your earnings depend on volume.

Revenue :

Risks You Must Understand Before Investing

Like any other business, cloud kitchen franchises also have some risks.

• High competition:If your cloud kitchen is located in high popular areas , it's difficult to stand for a long time.
• Dependence on platforms: Since orders are mostly placed through Zomato and Swiggy, there is less control over getting orders.
• Commission charges: These platforms charge anywhere between 20% to 30% or even more on each order.
• Quality maintenance: The taste and quality of food must be maintained at the same level with every order to retain high ratings.

How do you scale your business?

 However, scaling up may not necessarily mean a new investment.

• Add more brands: More virtual brands can be added using the same kitchen.
• Expand location: Once stability is achieved, a second kitchen can be opened in another location.
• This scaling strategy will be gradual. It is imperative to always focus on stability before scaling up.

Real-World Proof: How Big Companies Use This Model

Before you invest in a cloud kitchen franchise in India, it is important to see how the model works in the real world. Some of the biggest food companies are using this model successfully, and you can get a sense of direction by looking at what they are doing.

Rebel-Foods

• It is a company that is one of the largest players in the cloud kitchen industry, and the entire business model is based on the multi-brand model.
• They have 450+ cloud kitchens located across India and international markets.
• They are generating more than ₹1,000 crores in revenue every year.

For you, the important part is that they are not opening different restaurants for different brands. They are utilizing the same kitchen to the maximum and generating more revenue for the business.

Curefoods

• It is another example, especially if you are planning to explore cloud kitchen franchise business opportunities.
• They have 500+ cloud kitchens across 70+ cities in India, including smaller cities, which are growing at a high rate.
• They run multiple brands like EatFit, CakeZone, Frozen Bottle, and many more under one umbrella.
• They are catering to different customer requirements from a single kitchen.
• They have generated a business of ₹700+ crores, and this is a clear example that this business model is highly effective.

For you, this means that you don’t need to focus on a particular kind of customer.  

What is the Cloud Kitchen Franchise future in India 2026?  

• Hyperlocal Ordering: Cloud kitchen franchises are gaining popularity, and hyperlocal ordering is one such factor that is driving them.
• Growing User Base: Food delivery applications are gaining a huge following, and millions of users are becoming a part of online food delivery platforms.
• Diversification of Brands: Cloud kitchen franchises are diversifying brands, and this concept is gaining momentum.

The demand for cloud kitchen franchises is no longer confined to metro cities, and Tier 2 and Tier 3 cities are becoming new markets, providing huge opportunities for new investors to venture into this segment.

Conclusion

The multi-brand concept has completely changed how one enters a food business. For example, a cloud kitchen franchise in India does not necessarily require a huge investment and a huge space to operate. One can operate 3 or more brands from a single kitchen with proper planning and still operate within a budget of ₹10-15 lakhs.

However, one has to make smart decisions, such as choosing the right brands, proper cost management, and a successful operation, which makes a huge difference. This is not a strategy for quick returns, but a successful strategy for those who are ready to operate it successfully.

For new investors, this strategy gives a risk-free entry into a food business, rather than relying on a single brand, as more brands help in increasing revenues and reducing risks. With the growing demand for online food orders, this has huge scope, especially in smaller cities and metros.  

FAQs

1. How many brands can I operate from the cloud kitchen?

 You can begin with 2-3 brands and expand the number as the operations are stabilized.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.