Executive Summary

Taste Hub Nairobi is a proposed ghost kitchen facility that will provide flexible, turnkey commercial
kitchen spaces for food entrepreneurs and restaurants looking to enter or expand their presence in
Nairobi's booming food delivery market.

The concept was developed to address key challenges faced by food businesses in Nairobi, including
prohibitively high real estate costs, restrictive lease terms, and lack of facilities optimized for
delivery-centric operations. Taste Hub Nairobi aims to be the leading ghost kitchen in the city by
offering prime location, diverse kitchen units, competitive pricing, and value-added services.

The facility will be located in the Garden Estate neighbourhood, an affluent residential and
commercial hub with excellent transportation access. It will feature 15 kitchen units ranging from 15-
35sqm equipping to commercial standards. Additional amenities include storage, office space and
customer pickup areas.

Market research shows strong demand for diverse dining options and online ordering in Nairobi,
particularly among middle-high income households that form our core target customer base. The
delivery market is expected to grow significantly yet supply of specialty concepts is limited by high
entry costs associated with traditional cafes/restaurants.

Ghost kitchens provide an affordable entry point for food businesses seeking to tap this large and
growing market. Taste Hub Nairobi is well-positioned to penetrate the market given its prime
location, strategic differentiation and experienced management team with proven industry expertise.

Initial funding of KES 35 million is required to develop the facilities, procure equipment, and launch
operations within 6 months. Financial projections estimate profitability by year two as occupancy
rates rise, generating strong returns for investors. The goal is to become the leading ghost kitchen
provider in Nairobi and help establish it as a centre for delivery-focused culinary innovation.

Business Description
Concept
Taste Hub Nairobi aims to cater to the needs of delivery-centric food businesses by providing a
curated collection of professional kitchen spaces in a centralized Nairobi location. This allows chefs
and entrepreneurs to focus solely on menu development, operations and customer acquisition
without the high costs and responsibilities of running a traditional restaurant.

Facility Overview
The two-story facility will be located in Garden Estate, along Mugoya Road, occupying a land space of
1,500sqm. It will include:

- 15 independent kitchen units ranging 15-35sqm equipped to NEMA standards

- Common storage facilities, freezer and dry goods areas

- Offices and customer service counter

- Dedicated indoor parking for staff and delivery drivers

- Outdoor customer pickup area with seating

Kitchen Units
The following kitchen unit configurations will be offered on flexible month-to-month leases:

- Small (15sqm): Ideal for starting concepts, delivery-only brands

- Medium (25sqm): Suitable for mid-sized operations, existing restaurants

- Large (35sqm): Tailored for volume-driven Ghost kitchen brands, commissaries

Each unit will include commercial appliances (stove, oven, freezer, etc), ventilation system, handwash
sink plus amenities like WiFi and daily cleaning services. Common areas will provide additional
storage and prep counter space.

Support Services
An on-site facilities manager and customer service team will handle day to day administration,
coordinate daily briefing meetings with tenants, oversee facility maintenance/repairs and liaise with
delivery drivers for order pickups/drop-offs. Additional value-added services include group marketing
support and storage facilities.

Industry Analysis
Industry Overview
The global ghost kitchen industry has grown rapidly fueled by the expansion of food delivery services
from companies like Uber Eats, DoorDash, Deliveroo, and JUMIA. Physical restaurants are struggling
with high costs and inefficiencies of managing delivery operations alongside dine-in services.

Kenya's food delivery industry has also witnessed strong growth over the past 5 years rising from an
estimated KES 30 billion to KES 80 billion currently. The sector is poised for further expansion given
increasing smartphone access, exposure to international food delivery platforms and changing urban
lifestyles.

Market Trends
Key trends driving demand include:

- Rising popularity of online food orders, especially among middle/high income households in
major cities
- Higher preference for convenience and variety offered through delivery services compared to
traditional restaurants.
- Growth of virtual kitchens/ghost kitchens globally as a more affordable and efficient model
for delivery-centric companies
- Younger demographic more receptive to experimental/niche cuisine options that ghost
kitchens enable.

Target Market Analysis

The target markets for Taste Hub Nairobi includes:

- Independent chefs & food entrepreneurs seeking affordable entry point

- Established restaurants leveraging excess kitchen capacity or new delivery concepts
- Food/beverage brands developing delivery-only divisions
- Third-party delivery companies with multiple virtual brands
- Large companies entering into the commissary kitchen business.
Competitive Analysis
While some shared commercial kitchens exist, no facilities in Nairobi currently offer diverse kitchen
units and specifications optimized for delivery/takeaway operations. Key differentiators of Taste Hub
Nairobi include:

- Prime central location near high density residential/commercial areas

- Variety of kitchen unit sizes tailored for different operations
- Full commercial equipping and support services
- Competitive pricing and flexible lease terms

Location Analysis
Site Selection Process

A rigorous selection process was undertaken to identify an ideal location consideration including:

- Proximity to target high spend customer neighbourhoods.

- Accessibility via major roads and public transportation routes
- Visibility and frontage along busy thoroughfare for branding
- Surrounding infrastructure like storage, parking, utilities
- Future expansion flexibility given land area and zoning guidelines.

The selected Garden Estate location scores highly based on the above factors. It is centrally located
within Nairobi's most affluent residential and commercial hub with proximity to over 100,000
middles/high income households. Major transport links and infrastructure in the area further
enhances customer and delivery driver accessibility.

Facilities Layout
The facility layout has been carefully designed keeping in mind workflows for delivery kitchens:

- 15 independent kitchen units arranged alongside central passageway.

- Separate storage areas, freezers, and dry goods stocking rooms
- Well-ventilated common food preparation counters
- Offices and customer pick-up area located at the front.
- Rear delivery entrance and dedicated parking facilitates driver access.

All aspects meet regulatory requirements while incorporating expert guidance to optimize workflow
efficiencies for delivery order fulfilment. The modular design also allows future expansion through
additional floors or an adjoining land parcel if required.

Business Model
Revenue Streams
Core revenue will be generated from:

- Rental income from leased kitchen units based on 3–12-month leases

- Additional charges for value added services like storage and utilities.
- Commission from facility branding and group marketing services.

Core Services
Key services provided include:
 - Fully equipped commercial kitchen units in varied sizes and configurations
- Common facility amenities like dry storage and food prep areas
- Utility and waste management inclusive in rental charges
- Facility and equipment maintenance including regular deep cleaning.
- Online marketing and branding support for co-promoting tenant brands.
- Coordination with delivery platforms and last mile services
- Administrative services covering accounting, legal assistance.

Cost Structure
One-time startup costs primarily include:

- Land and facility construction estimated at KES 20 million

- Commercial equipment purchase - KES 7 million
- Pre-opening marketing and staff hiring costs - KES 2 million

Operational costs will cover:

- Rent, utilities, and maintenance expenses
- Staff salaries and benefits
- Marketing, insurance, and compliance costs
- Working capital including inventory

Both fixed and variable costs are estimated to decrease as a percentage of revenue as the business
scales up and occupancy increases over time. Financial projections have been created based on
conservative estimates.

Marketing Strategy
Marketing Objectives

- Achieve 50% occupancy within 6 months of opening.

- Establish the brand as a compelling one-stop solution for F&B entrepreneurs.
- Drive direct sales while cultivating a vibrant tenant community.

Integrated Marketing Approach

The multi-pronged strategy will involve:

- Digital and content marketing targeting culinary professionals and F&B companies.
- Public relations outreach to industry publications and media
- Partnerships with food delivery operators and advisory boards
- Networking and events to stimulate business matching.
- Direct sales and relationship building with prospective clients.
- Promotions and incentives for early clients or larger leases

Brand Positioning
The brand will position itself as the hub enabling F&B dreams through a supportive, collaborative
environment. Key messages will highlight its central location, high quality facilities and value adds
like marketing assistance.
A vibrant yet professional identity will be developed incorporating natural textures and colors
reflecting the fresh, local cuisine the facility aims to incubate. Digital assets, signage and collateral
will project an innovative yet approachable image.

Operational Plan
Management Team
Led by an experienced CEO from the hospitality sector, the core team brings complementary skills in
operations, marketing, culinary and finance:

- CEO - 10+ years’ experience managing hotels and restaurants.

- Operations Head - Chef with 10 years in multi-unit food businesses
- Marketing Manager - Digital marketing specialist in food industry
- Finance Controller - Qualified accountant with commercial real estate background

Staffing Requirements
Key roles required include:

- Facility Manager - Oversee day-to-day operations and tenant coordination.

- Customer Service Representatives (3) - Handle office administration, client inquiries
- Cleaning Crew (5) - Deep clean units daily and maintain common areas.
- Maintenance Technicians (2) - Address repairs, handle preventative maintenance.
- Security Guards (2) - Monitor premises during all hours of operation

Policies and Procedures

Rigorous standard operating procedures will cover:

- Equipment usage guidelines and scheduling

- Facilities access protocols and security systems
- Daily and weekly cleaning schedules
- Inventory and waste management compliance
- Maintenance response SLA's for repairs and replacements
- Crisis and contingency plans for disruptions

Comprehensive manuals outlining policies and tenant responsibilities will ensure smooth, regulated
operations. Regular staff training will reinforce compliance.

Financial Plan
Startup Capital Requirements

- Land and Construction: KES 20 million

- Equipment Procurement: KES 7 million
- Pre-Opening Expenses: KES 5 million
- Working Capital: KES 3 million
Total Funding Required: KES 35 million

Funding Strategy
A mix of funding is being pursued:

- Venture capital funding from impact investors - 30% stake

- Institutional loans targeted through business accelerator partnerships
- Co-investments from potential anchor tenant partners
- Private capital from founder/management team

Projected Financials
Detailed 3-year financial projections have been prepared estimating:

- Year 1: KES 20 million revenues, 10% occupancy, KES 3 million net loss
- Year 2: KES 30 million revenues, 50% occupancy, KES 5 million net profit
- Year 3: KES 40 million revenues, 75% occupancy, KES 10 million net profit

With healthy growth estimates and low ongoing capex needs, the business is expected to provide
strong returns for investors within 5 years of operations.

Implementation Timeline
Key milestones in the 4-month implementation plan include:

M1: Financing closure and development approvals

M2: Facility construction and equipment installation

M3: Staff recruitment and training

M4: Official grand opening

M5: Ramp tenant acquisition programs and expand marketing.

Rigorous project management practices will ensure the goals are achieved on schedule to enable
launch by April-2024. Continued growth will then be an ongoing strategic focus.