Cloud Kitchen Revenue Model

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: 52:47
SP

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.

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