Use of Cloud Kitchen Model In India-Growth & Competition
Traditionally, it was not easy to set up a restaurant. It was even more time consuming than it looked to be. But now with the growth of Indian market and online food distribution and food suppliers it has changed a lot. You can start your own food and restaurant business in just few days if you have the right way to take upon.
Faasos which was founded by Jaydeep Brman in 2011 has made to it. It has shown how with a right idea a business can reach at a great height. In just 2 years, fassos has made up to more than 1000 chain of restaurants from 250 earlier. If you think that where these restaurants are then you should know that these restaurants are cloud restaurants. It’s not the same where you go, pull up a chair, sit and order your food. You can order your food but only through the online channels. Fassos runs on a virtual restaurant where multiple restaurants run at a single place.
According to Faasos, it is only due to the online market that endured in India in the last 5-10 years which made this possible to them. Competing with the traditional restaurants was not an easy thing but since people got used to the online food ordering platforms such as swiggy, zomato, Ubereats etc. it became possible for them to start their own 1000 restaurants in just 2 years.
Faasos revenue growth by its cloud kitchen model and business strategy
Faasos not only worked as a single brand but it rolled out multiple brands like Oven Story for Pizzas, Behrouz for Briyanis, Wraps, Kettle and Kegs, Sweet truth for desserts etc. The use of multiple brands has enhanced its growth rate. The 60% of the revenues is contributed by wraps followed by 30% from Briyani. It is even offering Faasos referral code to acquire its new customers through refer and earn program.
Seeing the growth of Faasos, the newly started FreshMenu is also a cloud kitchen model. Even zomato and swiggy are planning put its hands in cloud kitchen. Swiggy even started its own first brand The Bowl in Bengaluru.
OYO-New Entrants to Cloud Kitchen
According to the recent news, OYO is also planning to add a vertical of food to its OYO Apps. OYO was also planning to acquire the newly opened food delivery start up Freshmenu. Then we came to know that OYO has already started its own cloud kitchens by the name Adraq by OYO and O’Biriyani by OYO and was found to be operational and serving food.
However, OYO Food App is also available on Google Play Store and is working as an intermediator to the vendors and distributors who are keen to serve at OYO hotels. According to OYO spokesperson, OYO food is still in its initial stages and is being tested kitchen in its hotels.
