How To Make Your F&B Business Profitable in Cloud Kitchen
“How do I make profits?”, this the number one question in all business owner’s minds. Great news for all F&B business owners because we have the answers that you need to make your F&B business profitable.
Did you know that SME Bank reported up to 50% of F&B businesses in Malaysia fail by the 5th year of operations? Most of them were not able to make enough profit to sustain their business.
Running a food business can be all fun and exciting but it requires a lot of planning and deciding what is the best for your business. When it comes to making a profit, it all comes to your cost and revenue.
Hence, we are sharing some of the crucial factors in making your F&B business profitable and how you can do it exceptionally well with the cloud kitchen solution.
1. Price Game
Contrary to the popular belief, don’t dive into the price game.
It is true that customers are always looking for great deals when it comes to ordering on food delivery platforms but that does not mean that you as a food merchant need to lower your pricing to compete in the market.
Lowering your food price by simply monitoring your competitors’ pricing does not guarantee that you’ll increase your revenue.
Especially, when you need to cut down on quality ingredients and compromise on customer happiness. It’s a risky move unless you have a strategy in place.
Our advice? Price your food for what’s it worth and continue improving according to your customer’s feedback. Focus on preparing good food and they’ll definitely come back for more.
2. Utilise Your Resources
Utilising your resources to the best that you could is one of the biggest factors in making your F&B business profitable. Good for you that the cloud kitchen concept provides so many ways to do it.
The best way that we recommend to our merchant partners is by having virtual brands. This strategy allows our merchant to utilise their kitchen rent, cooking equipment, key ingredients, packaging supplies, labor cost, and many more.
How? It’s really simple! Virtual brand means having another food brand in your kitchen. Strategise your ‘new’ brand by coming up with a menu that uses the similar key ingredients of your original brand.
Plus, you are already paying for the space rent and have all the cooking equipment ready. Adding a virtual brand to your kitchen will enable business owners to utilise their resources to the max.
There are so many benefits of having a virtual brand in your kitchen. Read more about it HERE!
3. Market your F&B Business
Customers won’t know unless you tell them! In order to make your F&B business profitable, never stop marketing your brand like it is NEW.
Let’s face it, the F&B business is saturated. With the ease of technology and food delivery platforms readily available, anyone can start an F&B business; even from home.
Therefore, marketing your business is a crucial aspect to stand out and be profitable.
There are always new eyes that your business captures every day. Hence, it is important that your business have all the ‘Touch Points’ necessary to convert those eyes to sales.
Link your social media to your food delivery accounts. Attend to your social media inquiries. Share multiple times on discounts or deals that you’re offering. Work on delivery apps marketing and so on.
Sounds simple but plays a huge role in making your F&B business profitable.
Cloud kitchen concepts provide so many solutions to helping F&B business become profitable. Plus, being a cloud kitchen host ourselves, we help our merchant partners execute these strategies regularly.
Our operational and tech support allows our merchant to focus solely on their food. No more attending to platform issues and riders’ enquiries. While our marketing support, ensures that our merchants reach more audience on all the channels available.
By providing holistic support we would like to avoid our partner becoming part of SME Bank statistics.
Do you need support on making your F&B business profitable? Visit us at https://keatchen.my/ and book a FREE tour to our cloud kitchen.
“How do I make profits?”, this the number one question in all business owner’s minds. Great news for all F&B business owners because we have the answers that you need to make your F&B business profitable. Did you know that SME Bank reported up to 50% of F&B businesses in…