If one can seamlessly order cabs, groceries and electronics online, is it so hard to expect the same for food?
In the first part of this series we saw how foodtech had increased sales of restaurants but at the same time reduced the profit margins to peanuts. In this part we look at the unit economics of cloud kitchens and how it will impact people’s relationship with food.“In consumer goods retail, you can change the products overnight, but your restaurant is stuck with the name and the cuisine expertise that you claimed in the beginning,” – Jaydeep Barman “One needs at least three cloud kitchens to survive, as this helps spread the costs of procurement and managerial costs.” – Madhav Kasturia, Beijing Street
!function(e,i,n,s){var t="InfogramEmbeds",d=e.getElementsByTagName("script")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement("script");o.async=1,o.id=n,o.src="https://e.infogram.com/js/dist/embed-loader-min.js",d.parentNode.insertBefore(o,d)}}(document,0,"infogram-async");“We started four years ago with a high street restaurant but soon realised that paying INR 45K on just rent for the orders we were raking in was too high, so in a year we pivoted,” Madhav Kasturia, one of Delhi’s first cloud kitchen restaurateurs and owner of 11 online kitchens across Delhi and Mumbai said.