A company with modernization goals in food industry. Presently the plan of action is to modernize kitchens. For the same we have partnered with Zomato. We have also shown interest to work with Swiggy and other such similar start-ups for setting up fully modern, fire proof, sweat free kitchens. The end goal of the start-up is to make a dent in the hunger index of the country. In our next round of expansions we will work towards mass/mega kitchens and manufacturing(both food and equipment)/supply/transportation of low cost WHO standard nutritious 0meals to offices and people of lower income bracket.
Cloud Kitchens: Offering more convenience and variety at less price Kitchen in a cloud means ordering food from a website or an app without ever seeing the facility physically, which essentially means carrying forward the same trend of e-commerce cloud retail into food. No higher footfall locations to generate demand because kitchen in a cloud eliminates 1P (place) from the 4Ps of marketing. So, there is less dependence on the accuracy of P (place) in the physical world and it doesn’t matter whether the cloud kitchen is located on the ground floor or in the main market.
But a cloud kitchen lacks the avenues to improve the customer experience as there is no physical contact. So, packaging, web ordering convenience and delivery time become the important parameters to build customer experience. Aggregators like Swiggy and Zomato are giving an immense amount of business to cloud kitchens run on algorithms, which are built on a few parameters like kitchen efficiency and customer experience. If food is liked by customers and the average preparation time is less than 10 minutes for each order, the platform automatically gets more visibility in the app, which results in more orders landing in the kitchen.
With the burst in demand, supply grows abruptly and competition grows to saturate the market. This is a typical maturity curve in any industry with a disruption. Cloud kitchen is in the starting phase of this curve where the abrupt supply of cloud kitchens has started to grow very fast. This will saturate, especially in Tier 1 cities soon as high competition and stricter regulations come into the picture. Food in India requires a lot of hygiene control, which is being overlooked at the moment to cope with the high demand of online ordering. But with maturity, only scalable organized identity will be able to get the pie of ordering in and unorganized players will be limited to a small percentage of the market. The value of running cloud kitchens professionally with hygiene at multi places will be the key to emerge as a long-term winner at the end.
