PRESENTED BY

DURANT DSOUZA
ROHAN WAGELA
SANNAY BHOMWICK

TEAM Dreamers
 FOOD SERVICE INDUSTRY IN INDIA
- The overall Indian food service industry is estimated to be Rs 5.99 trillion by 2022-23, growing at a compounded annual growth rate of 9 percent
- The organized food service sector, which is only 35 percent of the total market, contributed a whopping Rs 18,000 crore as way of taxes in 2018-19

Source: NRAI Technopak food services report

Indian food services market in (00’ crores)

Higher
infrastructure cost

Slowdown in
consumer
Pain points of sentiment
restaurant
segment
Increase in With increasing
competition in 90% of organized disposable incomes and
dine-out segment market is through smartphone
dine-in, while 8% penetration, consumers
Increase in operating
is online delivery are changing their
cost due to GST eating habits
 UNTAPPED MARKET POTENTIAL: FOOD TECH INDUSTRY

Despite making losses

there’s still an
increase in funding

- Food delivery apps account for ~83% of the total funding in food tech space
- Expected growth of food tech is USD 8bn (2023) from USD 3.5bn (2019); CAGR
~ 25-30%
- Higher growth in food tech space is through expanding reach in India, High
order frequency despite lower average order value

➢ Cloud kitchen is the new emerging vertical due to following reasons:

- Increased trust in the quality & freshness of food vs ‘Delivery Only’ Food apps
- Flexibility to keep experimenting with the menu
- Higher operational efficiency vs QSR due to pooling of resources

Food tech aggregators are nascent but one of the fastest growing platforms
Source: BCG report
 CONSUMER EATING HABITS AND PREFERENCES IN INDIA

First time
users of
online food
delivery
apps are
highly
driven by
peer
referrals

Consumer
archetypes from Consumer
different loyalty is
demographics obtained by
show more offering variety
similarities and of cuisines and
some nuanced deep discounts
contrasts in
category
adoptions
 GROWTH OPPORTUNITY ON THE GLOBAL SPACE
Online Food Service as % of Food Service spend 1 Business Description
2.0% 4.0% 4.3% 9.4% 9.5% 13.0% The business model would be keep running on a cloud-kitchen display offering four
in-house marks on its stage. These brands could be X, Y and Z, and P. The
organization depends without anyone else conveyance faculty to satisfy orders
Indonesia India Singapore UK US China
created through its very own application. Similar to the Fassos model, run a single
Key Partners: Local kitchen restaurant and keeping various popular brands under the umbrella and
Restaurants, Investors & slowly expanding thus taking a cautious approach initially until gaining mass share.
Payment systems
Operations Plan
Key Activities: Offering
Our goal is to provide fast and efficient delivery services to customers with minimal
discounts, negotiation with
restaurants and partners and
error rate. The business would first start from the state of Texas. In the long run we
platform development aspire to expand our services geographically. Critical factors in the delivery of our
service are accuracy and speed. We promise to deliver our services in a time range
Channels: App Store, Google of 0.5 to 2 hours.
Play, Word of Mouth & Viral
Channels Position
Customer Relationship: The bottom-line would be to focus on the thumbs up indicators in the American
Automated service, Tech market to ensure the capture of the masses and customer retention through loyalty
support, Feedback system & programs
Loyalty program

Key Resources: Physical

Assets (servers), Human assets
(designers and developers),
Value Proposition: Clients save money while
brand and software
restaurant earns new customers easier to access
by creating a better user experience Revenue Streams: Monthly,
Customer Segments: Mass market, semiannual and annual
premium fee for restaurants
smartphone users and existing market
Source: Euromonitor; BCG analysis.
 CLOUD KITCHEN – SUPPLIER TRENDS & SET-UP COSTS
Healthy margins and better quality assurance is driving a move towards Cloud Kitchen model

AGGREGATOR HUB & SPOKE

PARADIGM SHIFT MODEL

20
Zomato and Swiggy have both Delivery time as
announced infrastructure low as 20 minutes
investments as their Cloud Centralized kitchen combined
Kitchen project with delivery hubs

RESTAURANT AUTOMATION &

PARADIGM SHIFT SUSTAINABILITY

35 Market share for

delivery orders 10
Reduction in
processing time
Restaurants derive direct Automation in preliminary
benefits from reducing activities in the kitchen is
operation cost, maximising enabling cost and time
orders per day, decreasing optimisations. Sustainable
overall production and packaging options is
packaging time and capitalising becoming a customer
on existing user base acquisition driver
25 For 150 orders a day from 1 Kitchen with $6 AOV, Cloud Kitchen business
model promises a margin on the upwards of 25%
 PROJECTED PROFITS
REVENUE

No of restaurants 4
No of deliveries PER RESTAURANT per week 100
No of deliveries per day per restaurant 100/7 14.2857143
Total No of deliveries per day 14.2857143*4 57.1428571
Total deliveries/week 100*4 400
Total /month 400*4 1600
Fee per restaurant per month 10,000
Total revenue 10,000*4 40000
Cost
Average distance covered per delivery (km) 4
Total distance covered per month (km) 2*1600 6400
No of working hours per day 6
time per delivery @ 15 km/hour (in min) 20
No of deliveries per day 6*60/20 18
No of vehicles required 3
No of delivery boys 3
Salary of delivery boy 15873.0159
Assumption of mileage (km/liter) 70
Fuel needed in liters per vehicle 6400/70 91.4285714
Cost of petrol/liter 72
Total cost for petrol 91.4285714*72 6582.85714 Calculations done for the first
Maintenance costs/month 1587.30159 year i.e 2021
Total costs 24043.1746
Profit 15956.8254 Note: Does not include capital
expenditure
Profit margin 40%
 BUSINESS MARKET ANALYSIS & PROMOTION STRATEGIES
STRENGTHS WEAKNESSES

• Quick Delivery • Location based restaurant Finder

• Good brand image • Marketing, Brand awareness
• Trained delivery personnel’s • Delivery charges for orders
• Responsive customer support below a certain threshold
• Wide range of restaurants offered • Menu and App price difference

OPPORTUNITIES THREATS

• Pioneer in food delivery business • Unstable and low customer base

• Growing market • Increasing health consciousness
• Increasing market share • Increasing potential competitions
• Minimal competition • Laws and government regulations
• Lack of market leader
1. Promotion:
Pamphlets: Contact with the people who distribute newspapers in your 4. Influencer Marketing:
area and ask them to circulate your flyers Get in contact with influential personalities like chefs, food bloggers to
Events: Look out for food festivals happening around you and set up a small market your restaurant You can search for relevant influencers online to
stall. People will come and taste your food. If they found food tempting, market your cloud kitchen on various social platforms.
they will spread the news through word of mouth. 5. Reward & Loyalty Programs:
Social Media Presence: Post tempting food photos and videos on your 6. Analyze your Traffic:
social media accounts. Food is the most browsed and pinned category on Analyze your customers’ area, demographics, likes, and dislikes. Once you
Pinterest. Explore this platform along with other social media platforms like have the right information about your customers, you can create meaningful
Facebook, Instagram, and Twitter. promotions and target them through the right channel.
2. Offer Quality Food: 7. Customer Feedback:
3. SEO & Adwords:
 POSSIBLE BARRIERS & RECOMMENDATIONS

Barriers to usage are a function of the market’s maturity Advanced machine learning and new technology to
improve operations and consumer satisfaction
Delivery charges
Data Analytics and Machine Learning to improve operations
Lack of trustin app
Lack of customization • Leveraging with cloud computing technology has helped
• andinfrastructure understand eating habits & consumer trends
• Consumers have more • Use of machine learning to plan delivery routes and station
drivers closest to restaurants with high demand

High emphasis on Personalization

Lack of trustin apps
Delivery charges • Divides users into segments. e.g. college going students, etc.
Food quality concerns • Provide personalized offers & subscriptions to each based on
Lack of diningexperience popular choices, order times, etc. (for e.g. specialized bubble
• is growing rapidly tea subscription)
• Perceptive barrier in the valuechain
Convenience 2.0: Solving for “multiple restaurants, single delivery”
consumer wish-list
Food quality concerns • Pre-estimates demand and order food
Lack of trustin apps Lack • Consolidates from multiple hawkers & heats in food warmers
of personalconnect
• Consumer order and consolidated menu
• is still largely undeveloped
• Delivery riders pick up from food warmers & deliver
• is the most significant barrier

Source: Nielsen commissioned study by Google, weighting/analysis by BCG (N=290); N for each sample, Metro=118, Tier 2=76, Tier 1=96
Strong checks on quality assurance
Question asked: What are the reasons you don’t prefer ordering online?
%calculated on the basis of number of respondents that chose the option as their top rank (Rank 1)
• Flying squad of kitchen inspectors that check the quality of
high traction restaurants. Blacklists restaurants post 3 strikes
of consumer complaints
• Create incentives like free commission and sponsored
listings for restaurants that show improved quality practices
 MARKET RESEARCH ON AMERICAN CONSUMER BEHAVIOUR

USER JOURNEY DECISION

AWARENESS ORDERING DELIVERY CONSUMPTION LOYALTY
STAGES MAKING

Situations of need Pre-order decision Picking an app and Post-order and pre- Consumption and Customer retention;
DESCRIPTION generation making process ordering from it consumption experience share; feedback
disposal

Top scenarios for Top factors in deciding Top experience Top features expected Top experience Top expectationswith
ordering foodonline order parameters in the service parameters service

42 31 45 38 100 55
Busy with work Cuisine Options Real-time status Good food Consistency
EMPATHY
RESEARCH
RESULTS
28 30 22 26 32
Relaxing at home Price Minimum taps One call or lesser Reusable packaging

17 22 Top venues for online

orders 14 19
Last resort Delivery Time Dominos > Pizza Hut > Customer Care Receive and eat
Swiggy > Zomato

CLOUD KITCHEN
ADVANTAGE OVER
AGGREGATORS

The bottom-line would be to focus on the thumbs up indicators in the American market
to ensure the capture of the masses and customer retention through loyalty programs