Banerjee’s BrunchnBite is now serving around 1,000 orders a month and is looking to add another kitchen to reach out to more customers.
Delivery-only businesses – technically brand names – have grown over the past 18-24 months as they are increasingly seen as a cost-effective way to maintain business continuity and expand customer reach in an industry ravaged by COVID-19. have emerged. And, although businesses are reopening as the pandemic eases its grip, delivery-only brands ensure a solid revenue stream, catering to those who want to order rather than eat out.
Ankit Nagori, founder, said, “It is now convenient for a restaurant owner or brand owner to make and sell a good product.” curefood, a cloud kitchen company.
“Swiggy And
Build big business. Just like you saw a few years back in Flipkart, where we had a huge market and hundreds and thousands of sellers all over India benefited from it. It is now operating in the food category. ”
Swiggy and Zomato have seen an increase in the number of such cloud kitchen brands on their platforms. According to industry sources, they tripled from FY11 to 30,000 on Swiggy in FY11. On Zomato, the number of such brands will more than double from January 2020, before the pandemic, by August 2021, the company said.
Several large hotel chains as well as fine dining offline restaurants such as Bombay Canteen and Mask launched delivery-only brands with tailored menus after they were forced to shut down in March last year due to the pandemic. Food Matters Group, which operates The Table restaurant in Mumbai, has added two online brands since March 2020. Founder and CEO Gauri Devidayal said they plan to add more kitchens to their internet brands in the near future.
Forced to adapt to the pandemic, businesses were helped by the availability of technology and infrastructure solutions.
Karan Tanna, founder of cloud kitchen startup Ghost Kitchen, said, “People were not running out, so food delivery from the demand side accelerated and the quality of the brands delivering on the supply side increased.” Banerjee, who runs BrunchnByte, tied up with Dotpay, which provides an integrated payment solution, and has also hired a marketing firm to generate demand, 90% of which is through direct channels. Comes. It helps that the two big aggregators aren’t the only options for businesses.
The emergence of cloud kitchen startups providing third-party logistics providers, distribution channels and infrastructure solutions has also helped Internet brands grow and tap tier-two and other markets.
Cloud kitchens – cooking facilities dedicated only to the preparation of delivery meals – have naturally flourished. According to data from Tracxn, total funding for cloud kitchen startups has doubled to $234.2 million in 2021 as of October, compared to $112.4 million in 2020. To be sure, 75% of the funds raised this year went to Rebel Foods When
It raised $175 million In a unicorn round. In the decade since its launch, Rebel Foods has added at least five more business models in addition to its delivery-only brands: Fasos, Behrooz Biryani And oven story.