Curefoods – A Cloud Kitchen
A cloud kitchen is a delivery-only eatery idea with no physical premises, no dine-in region, and no takeout counter. It’s a restaurant kitchen that only accepts delivery orders and doesn’t have a regular restaurant or eating area. Curefoods India Private Limited is a cloud kitchen founded in 2020 by Ankit Nagori, and in no time, it became one of the fastest-growing cloud kitchens in India. Their motive is to serve customers with quality meals that would be cherished. They aspire to democratize access to delicious food in a sustainable approach by incubating food startups and managing cutting-edge cloud kitchens.
MasalaBox, Paratha Box, CakeZone, Ammi’s Biryani, Olio, Crusto’s, Juno’s Pizza, Cupcake Noggins, Iceberg, Nomad Pizzas, White Kitchens, and Chaat Street are part of the firm’s existing holdings, as are exclusive franchise rights for pizza cloud kitchen YumLane, Indian and Mughlai food cloud kitchen Aligarh House, and biryani cloud kitchen Sharief Bhai.
Curefoods acquires franchise rights for US-based pizza chain Sbarro.
A franchise (or franchising) is a way of sharing products or services that involve a franchisor, who represents the brand’s trademark and an operating model, and a franchisee, which pays a royalty and, in many cases, an initial service charge for the right to do enterprise under the franchisor’s name and framework. The “franchise” involves a contract that binds the two parties, although it is more basically used to connect to the franchisee’s real business. Franchising is a term used to describe the process of developing and spreading a brand and franchise system.
Sbarro, which came into existence in 1956, is a worldwide accepted brand with over 630 outlets in 28 countries. Sbarro’s India master franchise rights have been held by Upper Crust Foods ever since the company’s initiation into the nation in 2012. Since then, the RD Corporation (which includes Upper Crust Foods) has expanded to over 32 locations in the Mumbai Metropolitan Region.
Recently, Curefoods announced that they have acquired South India franchise rights for Sbarro, an international pizza chain that specializes in New York-style pizzas. The main goal behind this acquisition is to utilize and promote the love for pizza in India.
In one of the interviews, the Curefoods team expressed that pizza as a category is quite popular in India; therefore, adding a New York-style pizza option is a terrific boost to Curefoods’ entire portfolio. By partnering with a global brand like Sbarro, they want to utilize their scale and digital capabilities to expand their reach. This relationship will allow them to deliver a worldwide recognized and adored legacy pizza brand to the country and increase their position in the pizza market. Curefoods, the food-tech business, already has over 75 cloud kitchens. Curefoods aims to buy 35+ brands by the end of 2022, paying EBITDA multiples of 8-15x and seeking an ARR of $100 million.
Growth and Future Plans
People avoided dining out throughout the epidemic, which hurt dine-in eateries. According to a survey by India’s National Restaurants Association, the restaurant business dropped by 53% in the fiscal year 2020-21. Cloud kitchens drew a lot of interest at the time. Considering they don’t require servers, front office employees, or parking space, such enterprises have low admission prices. Establishing a successful cloud kitchen business is not simple. To maintain brand memory, businesses must invest in marketing and digital design.
Food aggregators like Zomato and Swiggy must be compensated on a per-order basis. As a result, the savings made on rent is used towards other expenses. Compared to the US and China, India’s cloud kitchen and restaurant businesses are severely underserved. In the subsequent years, higher rents, a shortage of workspace in large cities, and a growing middle class will fuel the rise of cloud kitchens. The Indian cloud kitchen market is predicted to grow to $3 billion in Gross Merchandise Value (GMV) by 2024, up from over $400 million in 2019.
Iron Pillar, Chiratae Ventures, Sixteenth Street Capital, Accel Partners, and Binny Bansal are part of the current investors in Curefoods Pvt Ltd, which has raised $62 million. The business stated in a release that Alteria Capital, BlackSoil Capital, and Trifecta Capital provided $10 million in loan financing in addition to the $52 million in equity funding. Curefoods aims to use the funds to continue adding significant cloud kitchen brands across the United States. Additionally, the firm plans to extend its multi-brand kitchens across the nation and develop a D2C, which is a direct-to-consumer platform for all of its brands.
In a recent interview, Ankit Nagori, the founder, expressed that in India, the internet meal delivery sector is transforming; the field has demonstrated enormous potential and drawn significant investment in recent years. There’ll be opportunities to develop several food brands across flavours and territories during the coming decade. They want to use the funds to develop across geographies and satisfy newer client requirements.
In the next three years, Curefoods want to establish 50 Sbarro locations. The first one will be established in the silicon valley of India, Bengaluru. To guarantee optimum client access, the expansion will include a combination of walk-in stores and cloud kitchens.
The total purchase of Swiggy-backed cloud kitchen player Maverix follows the acquisition of Sbarro India’s franchise rights to the series. Maverix’s cloud kitchen business, which has 50 cloud kitchens in Delhi, Mumbai, and Bengaluru, will be merged with Curefoods, thus increasing the latter’s production capabilities and expanding the market. Great Indian Khichdi, Canteen Central, and Home Plate are some of the company’s well-known food trademarks. Curefoods’ global market growth has far surpassed industry averages, with sales increasing by 50% quarter over quarter in the previous year.
The Curefoods banner wants to ensure the formation of a national kitchen system that is highly standardized, efficient, and ethical.
Edited by Prakriti Arora