ACC601 - Cloud Kitchen Business Strategy, BSC, and Financial Report

This report examines the business strategy of Munch'oholic, an Indian food cloud kitchen in Sydney. The report details the business's products, target market, and location, highlighting its focus on providing authentic Indian cuisine to the local Indian population and other food enthusiasts. It includes a Balanced Scorecard (BSC) analysis, evaluating financial, internal business, customer, and learning/growth perspectives. Furthermore, the report provides a break-even analysis for select products, a budgeted Profit & Loss Statement spanning 12 months, and a corresponding budgeted Cash Flow Statement, offering a comprehensive financial overview of the business's performance and future projections. The report emphasizes the cloud kitchen model's operational advantages and its ability to cater to the evolving consumer preferences in the food industry.

Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1 Explain the strategy of the business its product, market, and location of market etc..............3
2 Develop business strategy by including a Balanced Scorecard (BSC) analysis of the
business. Also provide measures for each of the four BSC categories.......................................4
3 A break even analysis of at least two products or services, and up to three products and / or
services........................................................................................................................................6
4 Prepare a budgeted Profit & Loss Statement showing at least 12 individual months and an
annual total..................................................................................................................................6
5 Prepare a budgeted Cash Flow Statement showing at least 12 individual months and an
annual total..................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A cloud kitchen is also termed as a 'ghost kitchen' because it lacks in physical visibility to
its customers. It is different from restaurants that offers dine-in facilities as it lacks of all the
setup. Actually it needs minimum equipment, like space and kitchen equipment’s, as compared
to luxurious decors used by other restaurants. The working of entire cloud kitchen based on
online delivery. Being focused on delivery, a cloud kitchen either set up its own online delivery
website or collaboration with food collectors for physical presence and sales. It can be started
with a minimum investment as it results in saving of money and can be expanded to various
outlets, uses technology for customisation and offers less price with leads to competitive
advantage over rivals (Alola, 2019). This report consists of a strategy of an Indian food business
Munch'oholic in Sydney based on a cloud kitchen. It also contains information regarding the
products and market in which the business trades and also contains information regarding the
location of business. Furthermore, it consists of Balanced Scorecard (BSC) analysis of the
business and its categories.
MAIN BODY
1 Explain the strategy of the business its product, market, and location of market etc.
Strategy of Business
The working of a cloud kitchen is exceptionally different, as compared to traditional
kitchens. Cloud kitchen maximises the utilisation of technology for marketing, acquiring
customers, delivery etc. For example, multiple restaurants can be operated in a single space, as
various cloud kitchen. Multi brand cloud kitchen business model is a combination of different
brands under the same kitchen. Having a Indian food menu with collection from starters to
desserts, and delivered from a single kitchen, under various brand names. This type of cloud
kitchen uses resources in an effective manner and keeps operation cost lower. Flexibility is an
essential point of this type of multi brand cloud kitchen as they fulfil the demand of Indian food
in any area of Sydney and utilises marketing data information to involve various kinds of
cuisines from North Indian food to South Indian food. The strategy of Munch'oholic is to provide
all type of Indian food to the people of Sydney under one roof at affordable prices and at
unforgettable taste. It mainly focuses to treat its customers with extraordinary hospitality and

warmth and to serve the best authentic Indian food recipes created from locally produced
ingredients which provides a modern touch to ancient Indian dishes (Cosenz, and Noto, 2018).
Products of the business
People of Sydney loves dishes and finds Indian food pleasantly colourful and great in
taste. They understand that each area of India has its own flavours and way of cooking. Some of
the dishes like by people of Sydney are Chicken Vindaloo, tandoori chicken, potato bhaji, potato
curry, chicken kebabs, eggplant curry, carrot halwa, cardamom chai, mango lassi, dosai, and
palak paneer (Hardini, Taufiq and Bahtiar, 2021). The speciality of this business is Mango Lassi
as it is prepared by using Alphonso Mango which is considered as the king of all kinds of
mangoes and it is only found in country India as regarded as the costliest variety of mango due to
its different taste, colour and shape. The another speciality of Munch'oholic is it serves its
products mainly South Indian dishes on a freshly plucked banana leaves, which is a traditional
way or serving food in India, in order to feel people connected especially Indians to their
traditions and motherland.
Market
Munch'oholic mainly focuses on the Indians residing in Sydney and also pays attention
on other people who are willing to consume Indian food. In order to increase the popularity of
Indian Restaurant in Sydney the owner is required to use various marketing techniques for
advertising its products and services offered by the business. Business is being promoted via
advertisements and promoting special dishes on social media platforms and physical
advertisement through newspapers and templates. It also includes interesting discounting offers
or free coupons to its customers and must focus on inclusion of review option on the website for
feedback from its customers.
Location of Market
Munch'o holic is situated at Darling Point which is one of the most expensive place in
Sydney. It is located just four kilometres from the CBD. It is one of the most expensive suburbs
to rent in Sydney (Hsieh, Ma and Novoselov, 2019).
2 Develop business strategy by including a Balanced Scorecard (BSC) analysis of the business.
Also provide measures for each of the four BSC categories.
Balanced scorecard analyses (BSC)

It refers to a strategic management performance metric utilised to recognise and upgrade
different internal business operations and their resulting external outcomes. It is used to evaluate
and supply feedback to organizations. It is common among companies in the United States, the
United Kingdom, Japan, and Europe. Data collection is important for providing quantitative
outcomes as managers and executives collect and understand the information (Jerrim, and Sims,
2021).Company personnel can utilise this data to make better decisions for the future of their
organizations.
Categories of BSC
Information is collected and analysed from four aspects of a business. Financial
perspective, internal business perspective, customer perspective and learning and growth
perspective. Detailed description of these four aspects is provided below:
1. Financial perspective like sales, expenditures, and income are utilised to determine
financial performance. These financial metrics may involve dollar amounts, financial
ratios, budget variances, or income targets. Munch'oholic focuses on increasing monthly
and daily sales of food joint and also improves top selling products, test new menu items
and service charges (Marić, 2020).
2. Internal business perspective is estimated by investigating how well products are
produced. Operational management is analysed to track any gaps, delays, bottlenecks,
shortages, or waste. Munch'oholic uses techniques to measure the timing of food delivery
and also corrects any delay in delivery of food to its customers.
3. Customer perspectives are gathered to measure customer satisfaction with the quality,
price, and availability of products or services. Customers supply's feedback regarding
their satisfaction with existing products. Customers seek a pleasant and comfortable
atmosphere for dine in facility and speedy delivery for online food delivery facility.
4. Learning and growth are examined through the investigation of training and knowledge
resources. This handles how well information is acquired and how effectively employees
utilise that data to convert it to a competitive advantage within the industry. Training can
be provided to employees, reward customer loyalty and attract new customers with
promos (Schaltegger, 2018).

3 A break even analysis of at least two products or services, and up to three products and / or
services.
In Excel.
4 Prepare a budgeted Profit & Loss Statement showing at least 12 individual months and an
annual total.
In Excel.
5 Prepare a budgeted Cash Flow Statement showing at least 12 individual months and an annual
total.
In Excel.
CONCLUSION
From the above prepared report, it can be concluded that a cloud kitchen is a 'ghost
kitchen' as it does not have any physical visibility to its customers. It is different from restaurants
that offers dine-in facilities as it lacks of all the setup and it requires minimum equipment. This
report consists of strategy of Munch'oholic, information regarding its product or services and
also about its market areas and location of business. It also concludes a brief discussion
regarding the balance scoreboard analysis and also contains cash flow statements, break even
analysis, and budgeted cash flow of Munch'oholic.

REFERENCES
Books and Journals
Alola, A.A., 2019. The trilemma of trade, monetary and immigration policies in the United
States: accounting for environmental sustainability. Science of The Total Environment. 658.
pp.260-267.
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning. 51(1). pp.127-140.
Hardini, H.T., Taufiq, M. and Bahtiar, M.D., 2021. Use of Online Learning Media and Learning
Behavior as Predictors of Student Accounting Understanding. Edukatif: Jurnal Ilmu
Pendidikan. 3(6). pp.3663-3674.
Hsieh, C.C., Ma, Z. and Novoselov, K.E., 2019. Accounting conservatism, business strategy, and
ambiguity. Accounting, Organizations and Society. 74. pp.41-55.
Jerrim, J. and Sims, S., 2021. When is high workload bad for teacher wellbeing? Accounting for
the non-linear contribution of specific teaching tasks. Teaching and Teacher Education. 105.
p.103395.
Marić, J., 2020. Exploring 3D printing technology in the context of product-service innovation:
Case study of a business venture in south of France. International Journal of Business
Environment. 11(3). pp.222-238.
Schaltegger, S., 2018. Accounting for eco-efficiency. In Green Accounting (pp. 287-302).
Routledge.
(Alola, 2019) (Cosenz, and Noto, 2018) (Hardini, Taufiq, and Bahtiar, 2021) (Hsieh, Ma and
Novoselov, 2019) (Jerrim, and Sims, 2021) (Marić, 2020) (Schaltegger, 2018)