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Quick answer: A single-brand cloud kitchen in a Tier 1 or Tier 2 Indian city costs ₹4 lakh to ₹10 lakh to set up, and ₹80,000 to ₹2 lakh a month to run. Expect Swiggy and Zomato to take 18–30% commission plus GST on it. A typical kitchen breaks even at 20–35 orders a day.
A cloud kitchen (also called a dark kitchen or delivery kitchen) has no dining area. You cook in a rented kitchen in a lower-rent location and sell only through delivery apps and direct orders. You save on rent and interiors but pay heavily in commissions and marketing.
Setup cost breakdown
| Item | Low (₹) | High (₹) | Notes |
|---|---|---|---|
| Kitchen space deposit (200–400 sq ft) | 50,000 | 1,50,000 | Usually 3–6 months’ rent |
| Kitchen civil work, tiling, drainage | 30,000 | 1,50,000 | Less if you take an existing kitchen |
| Exhaust hood and chimney | 25,000 | 80,000 | Needed for fire safety and neighbours |
| Cooking range, tandoor, fryer | 60,000 | 2,00,000 | Depends on cuisine |
| Refrigeration (vertical + deep freezer) | 50,000 | 1,50,000 | |
| Work tables, racks, sinks (SS) | 30,000 | 80,000 | |
| Utensils and small equipment | 20,000 | 50,000 | |
| Licences (FSSAI, trade, fire NOC, Shop Act) | 5,000 | 30,000 | Varies by city |
| POS/billing software (first year) | 0 | 15,000 | |
| Branding, packaging design, photos | 15,000 | 60,000 | Food photos matter most |
| Initial stock and packaging | 25,000 | 60,000 | |
| Aggregator onboarding and launch ads | 10,000 | 50,000 | |
| Working capital (2–3 months) | 1,00,000 | 2,50,000 | Most underestimated item |
| Total | ≈ 4,20,000 | ≈ 13,25,000 |
Monthly running costs
| Expense | Typical range (₹) |
|---|---|
| Rent | 15,000 – 50,000 |
| Staff (1 cook, 1–2 helpers) | 35,000 – 70,000 |
| Gas and electricity | 10,000 – 25,000 |
| Packaging | 6–12% of sales |
| Aggregator commission + GST on it | 18–30% of app sales |
| Ads and discounts on apps | 5–10% of app sales |
| Software, internet, maintenance | 3,000 – 8,000 |
Licences you need
- FSSAI registration or State licence (State licence above ₹1.5 crore turnover). See the FSSAI guide.
- Trade/health licence from the municipal corporation.
- Fire NOC, required in many cities for commercial kitchens using LPG.
- Shop & Establishment registration (state labour department).
- GST registration if turnover will exceed ₹20 lakh, or to sell to corporate customers. See GST for food businesses.
- Trademark for your brand name (optional but wise; costs about ₹4,500 for individuals/startups/MSMEs).
Break-even example
Assume an average order value of ₹350 and these per-order costs:
| Per order | ₹ |
|---|---|
| Food cost (32%) | 112 |
| Packaging (8%) | 28 |
| Commission + GST on it (25%) | 87.50 |
| Ads and discounts (7%) | 24.50 |
| Contribution per order | 98 |
Monthly fixed costs (rent ₹25,000 + staff ₹45,000 + utilities ₹15,000 + misc. ₹5,000) = ₹90,000.
Break-even = ₹90,000 ÷ ₹98 ≈ 920 orders a month, or about 31 a day.
This is why most cloud kitchens push direct orders (WhatsApp, phone, own website): each direct order saves the ₹87.50 commission.
Ways to cut setup cost
- Rent a shared or ready kitchen (kitchen-as-a-service operators rent fitted kitchens by the month).
- Run two or three brands from one kitchen (e.g. biryani + rolls + desserts) to get more orders from the same rent.
- Buy used SS equipment from restaurants that are closing.
- Start with a limited menu of 10–15 items using shared ingredients.
Money tip
Recommended tools
- Commercial refrigerator / deep freezer
- Commercial kitchen chimney
- Tamper-proof delivery packaging
- POS software with Swiggy/Zomato integration
FAQ
What is the minimum investment for a cloud kitchen? About ₹3–4 lakh if you rent a ready kitchen and run a limited menu.
Is a cloud kitchen profitable in India? It can be, but margins are thin after commissions. Profitable kitchens usually have 30+ orders a day and a meaningful share of direct orders.
How much commission do Swiggy and Zomato charge? Typically 18–30% of order value, plus 18% GST on the commission. It depends on city, your negotiation and whether you opt for their delivery.
Can I start a cloud kitchen from home? Yes, for small volumes. You need FSSAI registration at your home address and should check housing society rules.
How many orders does a cloud kitchen need to break even? Usually 20–35 a day, depending on rent and order value.
Next: How to price your menu · GST for food businesses
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