Rebels with a Cause
How Rebel Foods operates India's Largest (if not the world's largest) cloud kitchen and deal with ancillary issues....
Hello Readers,
Today we will analyze the intricacies of the largest cloud kitchen chain (if not the world’s largest) cloud kitchen chain operating in over 450 cities.
Yes, you’ve heard it right, it is the parent company of our favorite Wrap house Faasos, i.e. Rebel foods.
How was all this started?
It all began in 2011 when they founded Fasos in Pune, initially focusing on selling rolls. However, they soon realized that relying solely on rolls might not be sustainable for substantial profits. As a result, they decided to introduce pizzas to their menu. However, the initial response to their pizzas was underwhelming, while their roll sales remained strong.
However due to the presence of a large number of burger and pizza chain and the association of a particular food item to a cuisine chain (McDonald’s is known for burgers, KFC for fried chicken, and Domino’s for pizza) led to Rebel foods focusing only on wraps through Faasos and creating Ovenstory for the pizza segment.
As we all know the Restaurant business is quite a capital heavy business, right from buying land or buying hotels or renting them to hiring the staff and spending on enhancing the ambience, its just more and more costs.
So how did Rebel Foods switch form the traditional hotel with an online ordering facility to a cloud kitchen?
Well it all happened when they realized that more than half of their customers never visited their restaurant in person and did order online so this shift towards cloud kitchen took place and spread over 10 cities across the globe as of April 2022.
Here is a 2020 Forbes reference
Now Rebel Foods operates many eateries such as Behrouz Biryani, Ovenstory, Faasos, Eatsure, etc. any many more.
Rebel Foods has set up its business using its own as well as its partner brands. The company’s Rebel Launcher program creates a platform for various other established brands to leverage its expertise and market. The partners get a chance to expand their businesses in new cities and countries through Rebel, and vice versa. Rebel’s business model explains that the company grows along with its partners and associate brands. Together, they sell their brand's products online across 10 countries.
Now it has some issues though:
Only some brands like Eatsure, Faasos, Ovenstory and Behrouz Biryani are successful and they’re having trouble making their other brands successful
They have an over dependance on delivery apps and franchisee partners, and delivery apps in particular as there are various food options available on these apps.
Remedies:
They’re trying to open 100 food courts in India by the end of 2024, starting with a big one in Pune.
To get hold of more customers, they are tying up with brands like Wendy’s and buying parts of other food chains like Biryani Blues and Slay Coffee.
So, hope you enjoyed today’s business breakdown….
Until then……
Always remember Knowledge first!!!!!