Cloud Kitchen Revenue Model
Share
A delivery-only sushi restaurant operating from a rented commissary kitchen, dramatically reducing startup costs compared to a traditional restaurant. Instead of a $300-500k buildout and 10-year lease, they paid $19/hour for kitchen space.
Key Points:
-
Business Model:
- Delivery-only restaurant (no physical location)
- Rented commissary kitchen by the hour ($19/hour)
- Focused on sushi delivery
-
Customer Acquisition:
- Floor-to-floor office building sales
- Targeted office managers/front desk staff as key influencers
- Offered free sample trays to offices that regularly ordered catering
-
Sales Strategy:
- Asked qualifying questions about office catering habits
- Created risk-free offer (free sample tray)
- Focused on bulk orders for office lunches
-
Results:
- Profitable from month one ($13 profit)
- Reached ~$30,000 in revenue by first month
- Operated for 3 months before pivoting
- Realized delivery was the valuable part, not specifically sushi
-
Key Learning:
- The business model proved viable but team realized the delivery aspect was more valuable than the specific food type
- Could have expanded to deliver various food types instead of just sushi
06:38 - 07:11
Full video: 52:47SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.