How to start a cloud kitchen in India

Kitchen setup: rent your own or share one

Your first decision shapes everything. A dedicated rented kitchen - a small commercial or semi-commercial space of 150-300 sq ft - gives you full control over hours, hygiene and recipes, but you carry rent, deposit, electrical load, exhaust, a commercial gas connection and the full equipment bill yourself. Depending on city and how much second-hand equipment you buy, initial outlay commonly runs from a couple of lakh upwards.

Shared or co-working cloud kitchens (aggregator-run kitchen pods and independent operators) rent you a ready station with utilities, exhaust and sometimes a shared licence umbrella. You launch faster with less capital, but you pay a monthly fee or revenue share and cook in someone else's slot. Good for testing demand; less good once volume grows and the per-order cost of shared space starts eating your margin.

• Own kitchen: higher upfront, lower per-order cost, full control - better once volumes are steady.
• Shared kitchen: low upfront, faster launch, higher ongoing cost - better for testing a concept.
• Whichever you pick, budget for a proper exhaust, potable water, pest control and staff - inspectors check these.

FSSAI licence and the paperwork you can't skip

Every food business in India needs an FSSAI registration or licence. Which tier you need is driven mainly by turnover: the smallest operators fall under basic registration, mid-sized ones under a State licence, and large-turnover or multi-state operators under a Central licence. The exact turnover thresholds and fees change, so check the current rules on the FSSAI portal or with a consultant before you apply - don't rely on an old blog figure.

Beyond FSSAI you'll typically need GST registration once you cross the threshold or list on aggregators (they usually require it), a trade licence or shop establishment registration from your local municipal body, and possibly a fire NOC depending on kitchen size and local norms. Keep your kitchen photos, water test report and staff medical checks ready - these support the FSSAI application and any inspection.

Menu engineering for delivery

A dish that shines on a plate can arrive as a soggy, leaked mess after 30 minutes in a bag. Design your menu backwards from the delivery experience. Gravies, biryanis, tandoori items, most Indian curries and dry snacks travel well. Anything crisp (dosa, fried items that go limp), anything that steams itself soggy in a sealed box, and delicate plating are risky unless you fix the packaging.

Keep the menu tight. A short menu means fewer raw ingredients, less wastage, faster kitchen throughput and more consistent quality. Build around a few hero dishes with high margins and shared ingredients, then add sides and beverages that lift the average order value without adding kitchen complexity.

• Favour dishes that hold heat and texture for 30-45 minutes in transit.
• Vent packaging for fried items; separate wet and dry components.
• Reuse core ingredients across dishes to cut wastage and prep time.

Aggregator economics vs direct orders

Listing on the big delivery aggregators gets you instant visibility, but it comes at a real cost. Commission rates are commonly cited in the 20-30% range depending on your city, category and negotiated terms - plus payment-gateway charges and the discounts they'll nudge you to fund. After packaging and delivery, a headline ₹300 order can leave far less in your pocket than you'd expect.

That's why direct orders matter. When a customer orders from your own channel - your website or WhatsApp - you keep the commission. You won't replace aggregators entirely (they own the discovery), but every direct order improves your blended margin. A practical model: use aggregators to get discovered, then convert repeat customers to your direct channel with a flyer in the bag, a small direct-only discount, or a WhatsApp number they can reorder from.

Your own ordering channel with Kartrocket

To take direct orders you need a place customers can see your menu, prices and order - without paying a commission on every sale. Kartrocket is Shiprocket's chat-native business builder made for exactly this. Describe your kitchen in plain language (Hinglish is fine) and a working site builds itself live: a photo menu with ₹ prices, and enquiry forms that route straight to your WhatsApp so regulars can reorder in a tap.

It's free to build and free to publish on yourname.kartrocket.ai with SSL included, and you can connect your own domain later. Checkout supports COD, UPI and cards, prices are computed server-side so they can't be tampered with, and there are no plugin or app fees - you pay only real pass-through costs like payment-gateway fees on prepaid orders. Start from one of the food templates and adapt it to your menu.

The unit-economics worksheet mindset

Before scaling, know the profit on one order cold. Take your average order value, subtract food cost (aim to keep raw materials a controlled share of price), packaging (often ₹15-40 per order depending on containers and how leak-proof you go), aggregator commission and gateway fees, and your share of rent, gas, electricity and labour spread across expected daily orders.

If a typical order barely breaks even, no volume will save you - you'll just lose money faster. Fix the maths first: raise the average order value with combos, trim packaging waste, and push repeat customers to direct channels. Then, and only then, spend on marketing to grow volume.

• Track cost per order every week, not just monthly revenue.
• Watch packaging creep - it's silent margin loss at scale.
• A higher direct-order share is the cleanest way to lift blended margin.