Indian Cuisine: Taste Evolution And Rise Of Cloud Kitchens

Indian food is cherished worldwide. The innovation, invention, fusion and progression in cuisine have changed the definition of tasty food; by doing this, restaurants have enhanced the taste manifold.

Dine-in restaurants have become more focused on quality and the environment. While restaurants are always there to go and enjoy the food, on the other hand, cloud kitchens have already identified their customers who want a quality dinner while sitting in the lounge at home. It is perceived that these mushrooming cloud kitchens are considered a threat to dine-in business.

Founder and MD of Massive Restaurants, Zorawar Kalra, is the owner of several renowned brands such as Masala Library, Pa Pa Ya, Farzi Café, Made in Punjab, and more. In addition to these, he also owns cloud kitchen brands, including Louise Burger and Slyce Pizza. According to Kalra, 'Cloud kitchens are not meant to compete with restaurants and hotels; they are complementary in nature and contribute to the growth of the cloud business.'

He adds that if cloud kitchens are competing with anything, it's home kitchens due to their easy accessibility through food delivery platforms and applications. This accessibility allows customers to enjoy food from their favourite chefs or food spaces within the comfort of their homes, often at a more affordable price. This is why the concept of cloud kitchens is here to stay and is expected to become a significant part of the Indian lifestyle in the future.

On the other hand, Divya Aggarwal, Chief Growth Officer at Impresario Entertainment & Hospitality, notes that the increasing contribution of the delivery business to the overall turnover of major food retailers signals the ascent of cloud kitchens. She also says, 'While altering the menu of an operational restaurant can be challenging, cloud kitchens and delivery models allow brands to swiftly respond to consumer demand.'

The taste and quality are closely monitored when it comes to delivery, and brands also exercise extra caution when it comes to packaging. During the delivery process, the food is packed with such precision that it stays fresh, warm, and intact even during bumpy rides. 'The burgers were properly packed and delivered as presented in the pictures. The patties of the burgers were not moved even an inch,' says one consumer who does not wish to be named.

How Do They Make Profits
Turning any business into a profitable venture poses a challenge, with some achieving early success while others take time to reach that level. Profitability in the cloud kitchen business varies compared to the traditional restaurant industry. The success of any business hinges on the efficiencies integrated into its system. According to Kalra, "The unit economics of a cloud kitchen can range from low-profit margins to as high as 20-22 per cent for the best-performing ones. Typically, profit margins in some cloud kitchen businesses still hover around low- to high-teen single digits, factoring in commissions with direct delivery partners."

Massive Restaurants' cloud kitchens maintain a 20-22 per cent EBITDA, and the corporate level EBITDA stays strong due to a cost-conscious approach from the start, as per the company.

Cloud Kitchen Challenges

Every sector faces its own challenges, and cloud kitchens are no exception. The primary challenge lies in their unique nature. Cloud kitchens encounter difficulties in hiring chefs, staff, and hiring other resources. 'When it comes to cloud kitchens, collaborating with such a rich network is equally and more challenging. The only way forward is to incentivize a credible career path and offer higher pay scales. This is essential for attracting top-line chefs and staff,' says Kalra.

Another significant challenge is attrition, particularly in tier 2 regions. Additionally, budget allocations for marketing and technical requirements, crucial catalysts for any business, must be prioritized. He adds, 'In the absence of these elements, 90 per cent of cloud kitchens will likely fail. Hence, it is crucial to have an efficient marketing and data analysing team on board to guide operations, ensure optimal performance, and identify issues for course correction.'

Healthy Choices, Calm Cravings

As the National Millets Year was observed in 2023 to create awareness about our homegrown superfoods, people have been inclined towards healthier eating habits. In line with serving healthy and gluten-free sweets, The Cinnamon Kitchen stepped in to satisfy your sweet tooth cravings.

Founded in 2018 by Priyasha Saluja, Cinnamon Kitchen serves plant-based, gluten-free, and refined sugar-free sweets. They enhance their nutritional value by incorporating millets like amaranth, jowar and buckwheat. The owner certifies the use of all organic, pesticide-free, and chemical-free ingredients. 'At The Cinnamon Kitchen, our USP is our recipes. We stay true to our ingredients and do not compromise with the taste or quality,' adds Saluja.

The Delhi-based bakery secured a substantial investment of Rs 60 lakh (a five per cent equity stake) from Aman Gupta, co-founder and CMD boAt.

By delivering food at its best, it marks the beginning of a new era where healthy, homemade meals are just a click or a call away. The convenience of accessing nutritious food from the comfort of your home.

poonam@businessworld.in