Bengaluru: In the ever-evolving landscape of the food industry, Let’s Biryani and Nama Spice, a new player has emerged, revolutionizing the way we think about dining and food delivery. Welcome to the world of Cloud Kitchens. Behind this innovative concept are visionary entrepreneurs who have embraced the digital age, transforming the culinary experience and reshaping the restaurant business. In this exclusive interview for The Balcony Stories with Nikhil Botta, the Founder of Let’s Biryani, I delve into exploring his journey, challenges, and the future of this exciting culinary phenomenon. Below are the excerpts…
Can you provide a brief overview of your cloud kitchen concept and what inspired you to start this venture?
Kitchen Lord Foods (KLF) serves as the overarching entity, overseeing multiple food brands that specialize in distinct culinary niches. These brands focus on specific cuisine niches allowing us targeted market penetration. We have started with two brands – Let’s Biryani and Nama Spice that have quickly found loyal patrons. The parent company provides strategic direction, resources, and shared infrastructure, enabling its sub-food brands to flourish individually while contributing to the parent’s diversified portfolio and overall success.
Our vision was to connect people with good, delicious and affordable food that is authentic in taste and serves as comfort food. One can order off our menu without worrying about the taste difference.
This idea was inspired by our own experiences. When we moved out of our home towns in different cities, we were fine having the local cuisine but once in a while (almost every Sunday which slowly turned into almost every other day) wanted something that was familiar and comfortable to our taste buds. We started looking for restaurants that created our kind of food. This sparked an idea. We set about creating kitchen cloud brands that served a specific food palate. We understood that the customer base would be small but loyal. However, to our surprise, the consumer base for both our brands have grown at a rate of 30% every month with loyal patrons introducing their friends and family to the authentic taste of our dishes. Personally, it warms my heart to see them enjoy the food.
Cloud kitchens are a relatively new concept. How do you see your business model addressing the changing dynamics of the food industry?
Cloud kitchens were a relatively new concept pre covid. However, during the pandemic, this particular business model excelled and inspired a lot of established brands to make explore the same. Post pandemic market saw a little bit of a dip as people wanted to dine out. However, since last year we have seen both outdoor and cloud kitchen models balancing themselves out with each finding a niche for itself. As a team, we believe cloud kitchen models will see faster growth and an upswing in the coming years. It’s swift, cost-efficient, agile, and quick to adapt to any changing market dynamics. Additionally, operating in a digital space allows cloud kitchens to gather valuable data on customer preferences, ordering patterns, and popular dishes. This data can be leveraged to refine menus, optimize pricing, and enhance customer experiences. Add to this the reduced geographical constraints that make this model even more lucrative.
What factors did you consider when choosing the location for your cloud kitchen? How important is location in the success of a cloud kitchen?
The beauty of the cloud kitchen model is that we can operate from less expensive or remote areas since they don’t need a prime physical location. This enables them to target wider geographic areas for delivery. However, we still have to set roots somewhere and there is a limitation of the delivery circle based on the cuisine we serve within a brand. There are a few other factors to consider:
- Market Demand: Analyze the local market to understand the demand for specific cuisines and types of food. Choose a location where there is a strong demand for the type of food you intend to offer.
- Proximity to Customers: Select a location that allows you to efficiently reach your target customer base. Consider areas with a high population density and a concentration of potential customers.
- Delivery Radius: Determine the maximum distance your delivery fleet can cover while ensuring that the food quality remains intact. This will influence the areas you can effectively serve.
- Competition: Research existing cloud kitchens and traditional restaurants in the area. Assess the level of competition and identify gaps in the market that you can fill.
- Accessibility: Ensure that your chosen location is easily accessible to both customers and delivery drivers. Consider proximity to major roads, public transportation, and popular landmarks.
- Infrastructure and Utilities: Check for the availability of essential utilities such as water, electricity, and gas. A stable and reliable infrastructure is crucial for the smooth operation of your cloud kitchen.
- Rental Costs: Compare rental costs in different areas. While cloud kitchens can save on rent compared to traditional restaurants, it’s still important to find a location that offers good value for the price.
- Regulations and Zoning: Familiarize yourself with local regulations and zoning laws that might affect your cloud kitchen operation. Ensure that the chosen location is compliant with all relevant requirements.
- Visibility and Branding: While cloud kitchens don’t rely on walk-in traffic, having some visibility and branding can still be beneficial. Choose a location with enough visibility to build brand recognition.
When you find a location that ticks the box on all the above parameters you have hit the trifecta of a smart and successful location that will give you delivery, operational, and partnership efficiency.
The competition in the food delivery market can be fierce. How do you differentiate your cloud kitchen from other options available to consumers?
When all things are equal, brands will fight the battle on quality of ingredients, authenticity of taste, and packaging of food. We have successfully done this for both our brands and will continue to up the ante on authenticity of taste to stay ahead.
Technology plays a crucial role in cloud kitchens. Could you elaborate on the tech-driven solutions you’ve implemented to streamline operations and enhance customer experience?
We are firm believers that tech-enabled platforms will be the cornerstone for success for cloud kitchens. There are two software that are integral to running a cloud kitchen and help us streamline operations and enhance customer experience: Order Management Systems (OMS) and Inventory Management Software.
Building a strong brand is essential for any business. How have you worked on creating a unique brand identity for your cloud kitchen?
Our brand’s biggest strength is its food – authenticity and taste.
However, to ensure that the customer connects with it we have ensured our value proposition is captured in our brand logo which highlights the cuisine and concept of our cloud kitchen.
We are very aggressive on our social media platforms and leverage them to showcase our dishes, engage with customers directly, and share behind-the-scenes glimpses of our kitchen operations.
Going forward we will add events, public relations and direct marketing to our brand building repertoire to continue creating a strong connection with our customers.
Menu development is key to attracting and retaining customers. How do you curate your menu, and how do you balance offering variety with operational efficiency?
We conducted thorough research to understand the preferences and demands of our target audience. This also involved analyzing trends, competitor menus, and customer feedback to identify gaps and opportunities.
The menu for both our brands was based on a combination of the above research, our team’s cooking prowess and the uniqueness of our own generational recipes.
We aimed for a menu that offers a variety of flavors and cuisines while maintaining a cohesive theme. A diverse menu can attract a broader customer base, but there should still be a unifying concept. We also maximize ingredient usage across multiple dishes to reduce waste and simplify inventory management, leading to operational efficiency.
However, this is an ongoing process and we will continue to add , delete and tweak as per market trends and customer preferences.
Customer reviews and feedback can shape a business’s growth. How do you manage customer feedback, and how have you used it to make improvements?
Right now, we are providing our services through swiggy and zomato. We are also open to take-aways for our kitchens. We get customer feedback mainly through swiggy, Zomato and google reviews and now through social media as well. Every review is important for us as it helps us understand the track improvements required.
Sustainability and food delivery packaging waste are growing concerns. How do you address these issues in your cloud kitchen operations?
Yes. This is a challenge. Gravy-based dishes, any sort of paper packaging, and unpredictable Bangalore traffic are a recipe for disaster. But there has to be a solution for it. We are currently in the process of designing new packaging that is more environmentally friendly and spill-free tight packaging. And it’s a task!
Looking ahead, what are your plans for scaling and expanding your cloud kitchen business? Are there any new trends or innovations in the industry that you’re excited to explore?
We have started with the launch of two brands under one parent company – Let’s Biryani and NamaSpice; and are in the process of creating more brands that will cater to a specific palate introducing patrons to authentic cuisine from different parts of the country.
There is still so much left unexplored in our rich food and cultural heritage. We want to create a strong brand that resonates with food authenticity first, before jumping on to other trends in the market.
What are the dishes you have currently on the menu?
Two of our very popular dishes from each cuisine are :
Let’s Biryani – MLA Potlam Chicken Biryani & Chicken dum biryani
NamaSpice- Thali & Rice Bowls