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Last Updated : Aug 06, 2018 05:18 PM IST | Source: Moneycontrol.com

Zomato's 'Cloud Kitchens' to give restaurants cheaper options

With this new venture, the restaurant search and discovery platform will provide small shared kitchen spaces to restaurant brands to help them cater to key delivery locations across cities for cheaper.

Ramakrishna Maruvada

In a Zomato blog post dated February 28, its Founder Deepinder Goyal explained the concept behind 'Cloud Kitchens', its new project which has raised many questions.

With this new venture, the restaurant search and discovery platform will provide small shared kitchen spaces to restaurant brands to help them cater to key delivery locations across cities at cheaper rates.

"Think of these infrastructure services as delivery-only food courts in locations slightly off the premium locations (think much lower rentals, but accessible); we will not have take-out or dine-in at these locations. Each location that we create will have 4 or more restaurant brands co-located with each other," Goyal said in his post.

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So basically a restaurant wanting to cater to a region different from where it is located, it will make use of Zomato's Cloud Kitchens. Zomato will be making available only the space for the restaurant to put a chef in and deliver its food.

Akshay Gupta
Akshay Gupta
Associate Director & CEO|Indiabulls MF

    Zomato is conducting surveys of various locations to determine where these delivery-only kitchens can be set up. Goyal claims that restaurateurs need not bring any cooking equipment with them when they start their business from this new location. "Zomato will provide the real estate, build the kitchen and supply all the equipment for these brands to just 'walk in’ and start their business," said Goyal.

    To acquire the cooking equipment, Zomato will look for restaurants that have shut down in the vicinity recently, and buy the the equipment from those restaurants. This will help save costs of buying brand new kitchen equipment.

    The food startup will help restaurants in various other ways, like creating the right menu and pricing, according to the demographic of the area. Although, Zomato will provide these kitchens only to restaurants who make the cut in Zomato's ratings which it gives out on its website.

    The restaurant owners will not be charged a fixed amount for rent. Rather they will have to pay an undisclosed percent of their revenues. Restaurant brands can leave these small kitchens anytime they want if they don't find it profitable. Goyal said there will not be any lock-in periods.

    Goyal said there will also be something in this venture for foodies, "As a user, you will be able to select dishes from multiple brands to build a single food order. So if you want to eat shawarma, and your friends want to eat pizza, that can be done in a single order."

    The company has roped in Arvind Dixit, Former COO of Wendy's India for this new project. It plans to hit 100 locations by the end of 2018.

    It has started a pilot kitchen in Dwarka in Delhi.

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    First Published on Mar 1, 2017 09:52 am
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