Cost Breakdown of a Small Cloud Kitchen Setup
Launching a cloud kitchen is one of the smartest moves for food entrepreneurs today. With lower overhead costs and the rise of online food delivery platforms, cloud kitchens are reshaping the restaurant industry. However, understanding the cost breakdown of a small cloud kitchen setup is crucial before you dive in. In this guide, we’ll break down every major expense — from kitchen equipment to licenses — so you can plan your budget wisely.
If you’re looking for durable and high-performance commercial kitchen equipment, Muskan Equipment Co. offers a complete range of appliances tailored for modern cloud kitchens.
1. Kitchen Space and Rent
The first major cost in setting up a cloud kitchen is renting or leasing a suitable commercial space.
- Estimated Cost: ₹30,000 – ₹70,000 per month (depending on city and size)
Choose a location that’s easily accessible for delivery partners and within reach of your target market. A 300–600 sq. ft. space is usually sufficient for a small cloud kitchen.
2. Kitchen Equipment
Your kitchen equipment is the backbone of your operation. This includes cooking ranges, refrigerators, exhaust systems, mixers, ovens, and food preparation counters.
- Estimated Cost: ₹3 – ₹6 lakhs
Opting for Muskan Equipment Co. ensures you get high-quality, energy-efficient equipment built for durability and performance — reducing maintenance costs in the long run.
Essential equipment includes:
- Cooking range or gas burners
- Deep freezers and refrigerators
- Work tables and shelves
- Bain Maries and hot cases
- Chimney and exhaust system
- Mixer grinders and food processors
3. Licenses and Permits
Legal compliance is non-negotiable. You’ll need several licenses to operate a food business safely and legally.
- FSSAI License: ₹2,000 – ₹5,000
- Trade License: ₹10,000 – ₹15,000
- Fire and Pollution NOC: ₹3,000 – ₹10,000
- GST Registration: Free
Estimated Total: ₹15,000 – ₹30,000
4. Kitchen Staff and Salaries
Even a small cloud kitchen needs a minimal team — a chef, helpers, and a cleaner.
- Estimated Monthly Cost: ₹40,000 – ₹80,000
Automation and efficient layout planning can help reduce staffing needs and keep operations smooth.
5. Packaging and Raw Materials
Packaging plays a big role in customer experience and brand image.
- Raw Material (initial stock): ₹30,000 – ₹50,000
- Packaging Supplies: ₹15,000 – ₹25,000 per month
Opt for eco-friendly packaging — it’s both customer-friendly and compliant with modern sustainability trends.
6. POS System and Technology
A good POS (Point of Sale) system helps manage orders, track sales, and integrate with delivery platforms like Swiggy and Zomato.
- POS Setup: ₹10,000 – ₹25,000
- Monthly Software Subscription: ₹2,000 – ₹5,000
7. Branding and Marketing
Even the best food won’t sell if people don’t know about it.
- Logo and Brand Identity: ₹5,000 – ₹10,000
- Digital Marketing & Social Media: ₹20,000 – ₹50,000 per month
- Listing on Food Delivery Apps: ₹10,000 – ₹20,000 (initial setup)
8. Utilities and Maintenance
Monthly running costs like electricity, gas, water, and maintenance must be factored in.
- Estimated Monthly Cost: ₹15,000 – ₹25,000
Total Estimated Cost to Start a Small Cloud Kitchen
| Expense Category | Estimated Cost (₹) |
|---|---|
| Kitchen Space (Deposit + Rent) | 1,00,000 – 1,50,000 |
| Equipment | 3,00,000 – 6,00,000 |
| Licenses & Permits | 15,000 – 30,000 |
| Staff | 40,000 – 80,000 |
| Raw Materials & Packaging | 45,000 – 75,000 |
| POS & Technology | 10,000 – 30,000 |
| Branding & Marketing | 25,000 – 60,000 |
| Utilities & Maintenance | 15,000 – 25,000 |
| Total Estimated Setup Cost | ₹5 – ₹9 lakhs |
Final Thoughts
Setting up a small cloud kitchen is a cost-effective way to enter the food business, especially in 2025’s digital-first dining landscape. By planning your budget carefully and investing in reliable commercial kitchen equipment from Muskan Equipment Co., you can ensure smooth operations, consistent food quality, and long-term profitability.