- Cloud kitchens = delivery-only restaurants, no dine-in
- Investment needed: ₹10–30 lakhs (depending on brand)
- Space required: 300–600 sq. ft. kitchen
- Profits: 20–35% margin, break-even in 12–18 months
- Popular brands: Faasos, Oven Story, Biryani by Kilo
Imagine ordering biryani, pizza, or burgers from Swiggy or Zomato, but instead of coming from a big restaurant, it comes from a small kitchen you can’t see. That’s a cloud kitchen.
A cloud kitchen franchise is when you run such a kitchen but under a famous brand’s name. For example, you can start a kitchen for Faasos. You don’t have to worry about brand building because customers already trust it.
In 2025, cloud kitchens are one of the fastest-growing food businesses in India. They are cheaper than restaurants, need less space, and focus only on delivery.
What is a Cloud Kitchen Franchise?
A cloud kitchen franchise means you don’t start your own food brand. Instead, you buy the license to run a kitchen of an existing brand.
For example:
- If you open a Faasos franchise, you cook Faasos recipes in your kitchen.
- Orders come through Swiggy, Zomato, or the brand’s own app.
- Customers get their food at home; they don’t visit your kitchen.
Investment & Setup Cost in 2025
To start, you’ll need money for franchise fees, equipment, licenses, staff, and marketing.
| Expense Type | Approx. Cost (₹) | Notes |
| Franchise Fee | 3–8 lakhs | Paid once to the brand for the license |
| Kitchen Setup | 7–15 lakhs | Equipment, furniture, utilities |
| Licenses & Permits | 50,000–1 lakh | FSSAI, GST, fire, health, and local permits |
| Staff Salaries | 2–5 lakhs/month | Chefs, helpers, managers |
| Marketing & Delivery | 1–3 lakhs | Online ads, app promotions |
Total Initial Investment = ₹10–30 lakhs
Space & Location Requirements
One big advantage is that you don’t need a big shop or a prime location.
- Space Needed: 300–600 sq. ft. (kitchen + storage + packaging).
- Best Locations: Near residential colonies, hostels, IT parks, or colleges (high demand for food delivery).
- Staff Requirement: 2–5 people (chef, helper, packaging staff).
- Equipment Needed: Cooking range, fridge, freezer, packaging machine, and food containers.
Advantages of Starting a Cloud Kitchen Franchise
Here’s why it’s a smarter business than opening a restaurant:
- Lower Cost: You don’t need fancy interiors or furniture.
- No Prime Location Needed: Even hidden kitchens work as long as delivery is possible.
- Brand Recognition: Customers already know the brand.
- Quick Break-Even: Investment recovery in 12–18 months.
- Easy to Scale: You can open multiple outlets in different areas.
Top Cloud Kitchen Franchise Brands in India (2025)
| Brand Name | Investment Needed (₹) | Space Required |
| Faasos (Rebel Foods) | 15–20 lakhs | 400–600 sq. ft. |
| Biryaaniwala | 15–20 lakhs | 350–500 sq. ft. |
| Oven Story Pizza | 10–15 lakhs | 300–500 sq. ft. |
| Biryani by Kilo | 25–30 lakhs | 500–600 sq. ft. |
| EatFit (CureFoods) | 15–20 lakhs | 350–600 sq. ft. |
Profit Potential
On average, a cloud kitchen franchise can earn ₹4–6 lakhs/month in revenue.
- Profit Margin: 20–35% (after expenses).
- Break-Even: 12–18 months.
- Growth: You can add more brands under the same kitchen (multi-brand model).
Example: A kitchen can run Faasos + Oven Story from the same space!
Key Takeaways
- Cloud kitchens are delivery-only food businesses with no dine-in.
- Investment ranges between ₹10–30 lakhs.
- Space required: 300–600 sq. ft., near residential or IT hubs.
- Profits: 20–35% margin with quick break-even.
- Brands like Rebel Foods & Biryani by Kilo dominate this franchise market.
Conclusion
In 2025, food delivery demand in India is only going to rise. A cloud kitchen franchise is the best way to enter the food industry without spending crores on restaurants. With low investment, strong brand support, and rising online orders, this is a future-proof business model.
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FAQs
Small brands start from ₹10–12 lakhs, while popular brands may need ₹20–30 lakhs.
No, you only need a delivery-friendly location, not a prime high-street spot.
Yes, it’s cheaper, faster to set up, and fits India’s growing online food delivery culture.
Faasos, Oven Story, Biryani by Kilo, and EatFit.
On average, 12–18 months, depending on order volume and city.
