Sarvashrut Projects Private Limited

In their own words

Why does this work? Because you’re cutting costs on front-of-house activities and concentrating on your food. With the availability of third-party services and the growing comfort of mobile ordering, this model seems just right to experiment with. There are more benefits involved like: Lower real estate costs Since you’re removing table servicing out of the equation and offering a delivery-only service, you’ll save a huge amount on real estate costs. Cloud kitchens release you from the obligation of having space in a high-visibility area. Rather than paying for accessibility, better-developed complexes, or even a large parking space, you can concentrate on having enough kitchen space in a decent area near to your target market. Better expansion opportunities The best thing about cloud kitchens is that you don’t need heavy investments to begin. You can start small but expand fast. Once you build a brand and get loyal customers, expanding to new localities and even new menu variety gets easier. Let’s take the example of Faasos, today it runs 160+ kitchens and 4 brands including Faasos, Behrouz Biryani, Oven Story and Firangi Bake. Saving on overhead costs With a cloud kitchen, you save so much on overhead costs. You don’t need client-facing staff, decoration or space entrance, parking area etc. Even if you have lower-priced menu items, your profit margins are likely to be better. The 6 Cloud Kitchen Business Models The independent cloud kitchen model – Single brand, single kitchen, no storefront. This is the original cloud kitchen model. A restaurant with no seating space and no physical store. Restaurant owners or food business entrants sidestepping high rents and real estate costs by shedding the front-of-house. This concept gained popularity with the growth of online ordering and growing consumer demand for deliveries. Typical kitchen size – 500 – 600 sq ft. How it works Orders come from online sources Kitchen only Specialized in a cuisine Delivery only A mix of aggregator dependency and self-reliance for orders and deliveries The Rebel foods (Faasos) business model – Multi-brand (cuisine), single kitchen, multiple outlets, no storefront. The more elaborate cloud kitchens are based on data intelligence such as area wise demographics of residents, popular cuisines and hyperlocal demand-supply. The idea here is to address the demand for the most ordered cuisine (Biriyani, North-Indian, Chinese, Burgers, Pizza & Pasta – that’s really it in India) in a neighbourhood (a 5-6 km radius) with relatively lesser restaurant options that serve these dishes. This model is clever because it positions the separate brands as their own individual establishments. And having a single shared kitchen keeps operational costs low. This model closely resembles the original cloud kitchen model with no physical storefront. You could think of it as specialized cuisine based cloud restaurants, owned by the same mother brand, sharing the same kitchen. How it works Orders come from online sources Single kitchen, multiple brands Each brand specialized in a cuisine Delivery only A mix of aggregator dependency and self-reliance for orders and deliveries The Freshmenu business model – Single brand, single kitchen, multiple outlets, with a storefront. This is kind of a mashup between a takeaway restaurant and a cloud kitchen. It resembles a cloud kitchen business model for the most part, but also has a storefront. The storefront exists to allow customers to walk in and see how their food is prepared, should they ever want to. In essence, this model utilizes all the operational efficiencies of the cloud kitchen business model but also has a “real” window with customers. Typical kitchen size – 1200 – 2000 ft How it works Orders come from online sources Single kitchen, single brand Changing menu that has a mix of seasonal dishes and bestsellers Delivery and take away A mix of aggregator dependency and self-reliance for orders and deliveries

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