One of the most popular concepts out there is building a cloud kitchen. But not a lot of people cover on the mistakes that you can potentially make that can cost your whole business. And that's the reason why I decided to shoot this video for you. The five most common cloud kitchen mistakes that you can make that will break your business. So make sure you guys stay until the end as I uncover all these secrets with you. Hey guys, this Wilson here, your friend in helping you build a profitable restaurant. Just want to give a major, major shout out to these two individuals right here for sending us so much love and positivity. That is something that I really, really enjoy because that's just a community that I want to be able to create for you. So if you want to be featured in our videos, make sure that you guys leave us a comment in the section below so that way you can get your chance to get featured. Now without further ado, let's dive right in. The number one mistake that you'll make is build it and they'll come. That is a huge fundamental fault mistake that a ton of people make because they don't understand who is it that they're trying to serve to. They don't understand the profile that they're serving to. They understand that they have amazing, amazing food choice. That they have amazing dish that they created, amazing masterpiece, but they don't know who they're serving to, which is the reason why people will not come. Failure to understanding the platform of how these third party apps and just truly 100% relying on them will definitely kill your business as well. Build it and they will not come because these third party apps act like a major, major search engine. How does that work? It is if you're not on the first page of something that people are looking for, then unfortunately, majority of the time people will buy from you because when was the last time you clicked on something after searching on Google on the second page, third page or the fourth page. Many times we click on the top three or four different links that pop up. And that's the reason why it is super important to understand how these third party apps and understand how do you market with them and understand how your consumers are buying before you actually commit to a food concept. The second biggest mistake that you can possibly make is to have bad management and systems. Yes, building a cloud-based kitchen would take a ton of your shoulders when it comes to operations versus a traditional restaurant. However, it is still up to you as the management, as the owner, to manage your food processes and your food systems. What I mean by that is if you order a bunch of ingredients that comes through the doors but you don't fully utilize them, you don't turn it out in a properly managed time, then it would go expire and you have to throw them away. And that's the reason why it would run a lot of people into bankruptcy because they don't manage their cost properly. They don't manage their systems properly. They don't have systems that they create in order for them to automatically turn out these products. You should definitely manage your product. So for example, if you have a food menu of 10 different items on your menu, then make sure that there are overlaps of how you can utilize these ingredients properly. Instead of having 10 different ingredients that you have to purchase for 10 different menu items, try to recycle them. If you're selling chicken, maybe sell chicken within two to three different dishes of yours. And that way you can recycle the ingredients and thus would help you with your ingredient planning and less spoilage, less cost of good sold, more profits in your pockets. Now the key thing about building systems and processes that allows you to free yourself up. So in that way, you can have a staff to be in your position. You don't need to be at that location 24-7. And that is really the true essence of being a restaurant here is to be able to work on your business, to be able to work on the processes, systems, marketing, expansion, rather than always being working in the business, flipping burgers, making tacos, then that way you can actually truly be able to free yourself up and create the lifestyle that you are lonely for. Another mistake you can make is to have too many items on your menu. Once again, it really comes back down to decision paralysis. A lot of people think that you know what? I need to give people options. And they end up creating 20, 30 different menu options which would just confuse all your customers. We don't want to confuse our customers because when they have too many choices to make, they end up making none. They end up choosing someone else because they feel overwhelmed. And that's the reason why you want to make sure that you have only 5 to 10 maximum, 10, many items for your food concept. And that way, not only can you manage your processes and systems even more efficiently, as I mentioned before, you can actually recycle a ton of your ingredients amongst the different dishes, but then also it allows you to work on items that only have high margins. Because once again, if you're relying on third party apps for your delivery and fulfillment, they take 20 to 30%. So if you make items that don't have enough margins, then you can easily be losing money for every item that you serve. And that's the reason why it's crucial to choose items for your menu that has high margins and easy to make and also allows you to recycle your ingredients. The fourth biggest mistake you can make is not knowing your customers. At the end of the day, a ton of restaurant here, we make food for ourselves. We don't make food for our customers because we think we have the perfect concept. We think that people love it. We think we make the best chicken nuggets. Yet, the people around us, they don't even like chicken. It's just not part of the culture. It's just not part of the demographic. And that's the reason why understanding your customer profile is huge when it comes to choosing the right-couching concept. Doing the research, understanding what are the different restaurants that are popular around you and then from their onwards, having your own twist to the menu item is crucial and is key to your success. For example, Rebels does an amazing job and in terms of research and market analysis, to figure out, hey, know what? Which restaurants are popular here? What are they serving? And then they turn those into cloud kitchen concepts to ensure that there's going to be a high demand for these items prior to them even starting because it's already existing within the marketplace. And that's the reason why understanding who you're serving to is crucial to your success. Last but not least, the biggest mistake that I see is not using alternative ways for market acquisition and really truly just relying on third-party apps because you're comfortable, because you're complacent, because these third-party apps bring in a ton of traffic and thus you don't feel risky at all. You feel like, hey, know what? Customers will always come. These third-party apps will always do the marketing for me and thus you're like, oh, it's okay. But what if one day they decide to take you off their platforms? Then all the hard work that you have built, all the brand loyalty for your brand that you have built is all gone down the drain. It is super crucial for you to actually consider having your own branded acquisition process. Something that would allow you to own your customers, some of the examples would be to have an insert card for your customers, for them to sign up to your email list in order for you to receive your free app. He perhaps give them incentive to become your email subscriber. If you have a ton of recipes that you can share, that could be also another incentive that you can write in the insert card for your customers. Perhaps a loyalty program. Something that allows you to capture their data is truly, truly, beneficial for you. And if you're good and if you're really amazing and serve great food, tell them to subscribe to your own branded apps. Once again, being able to control and having the data of your customers is crucial for your food concept success. Do not realize solely on third-party apps because once again, they're going to hold you by their throw. So one day they decide to not have you on their platform anymore or even just charge you $1,000, you have to pay it. They have you by the neck. And that's the reason why not diversifying is super, super critical and might really break your business if you don't diversify. So there you go. The five mistakes that you can make when building up your cloud kitchen concept. It is super, super crucial for you to consider these things. I know that there's a ton of advantage of going through these cloud kitchen concepts. On the other hand, these five different mistakes will definitely break your business if you don't pay attention to it. And that's the reason why hopefully you stay till now. But if you want to learn more about how do you start your restaurant, make sure you go into the description below to sign up for my masterclass where I talk about how do you locate and fine tune your customer profile. How do you create an item menu that they would enjoy and love and how do you market to them? Basically, this is a full on hour worth of training specifically for you on how to start a restaurant completely free of charge. So make sure that you go in the description below, sign up for it. Otherwise, I really hope you enjoyed this video. Make sure you smash the like button, subscribe along the journey and I'll see you guys in the next video.