The restaurant business has changed a lot in the past few years and technology is playing a major role in transforming this industry. Traditional methods were very capital-oriented and time-consuming, but now entrepreneurs are continuously innovating the process and making things simpler and quicker for restaurant owners.
If we compare India’s tech revolution with other countries, our country is still far behind and there are very few examples which play the role of a ray of light in this dark ecosystem. Faasos is one such name in the Indian market. The company has built 1000 new restaurants in the last 24 months. Also, these aren’t those old style restaurants, these exist in the virtual world as are delivery based only. With the emergence of food delivery apps, it looks like a promising task and the company is confident to compete with those of traditional restaurants in the coming years.
“Today, we can safely say we are world’s largest delivery only / internet restaurant company, and by a wide margin. At 1100+ individual internet restaurants, in 15 Indian cities, we have indeed come a long way in the last 24 months. It’s still Day 1 (as the other JB would say :)), but we know we are on to something very, very big. We have a once-in-a-lifetime opportunity to change a 500-year-old industry.”
Jaydeep Barman, CEO, co-founder Faasos shared in a blog post.
“In every industry — from FMCG to Durables, Clothing, Travel, and Entertainment, there are strong global brand owners (Unilever, Nike, Disney, Marriott) and strong retailers (Walmart, Amazon, Expedia, Netflix). Until just five years ago, Food was the only vertical where the brand owner and retailer/distributor were the same — you walked into a Starbucks for a coffee or a McDonalds for a burger. That is changing rapidly. Now there are Restaurant Brands, like Faasos, and Distributors, like Swiggy, Zomato, Ubereats and FoodPanda,” he added.
Single cloud kitchen concept
The reason for Faasos’ success lies in one big decision: to use a single “cloud kitchen” for running its several brands. Faasos doesn’t rely on its own brand under which it sells wraps, but it owns the Behrouz brand for biryani, Oven Story for pizzas, Firangi Bake for dessert, and some others.
All these brands are using a single cloud kitchen to deliver nearby areas. This is how it has been able to run over a thousand restaurants.
Both Zomato and Swiggy also have their own cloud kitchens — but with Faasos, the restaurants are delivery-only and this saves a lot of money for the company. Cloud kitchens have many advantages — restaurants can share infrastructure and unlike traditional restaurants, these don’t need to be in high-rent areas. Faasos says the results of clubbing different brand “restaurants” in a single cloud kitchen are showing — while it only increased the number of kitchens by 30%, its revenue has grown by 400%.
Not ignoring the value of good chefs
Also, in the last 2 years, the company launched 280 different menu items across brands. All this was possible because of having a core team of super-chefs.
Testing and expanding smartly
After starting with very few outlets and expanding 15 cities across the country, Fassos has smartly built pan-India supply chains. It is becoming bigger with every passing day and the speed of growth is also unmatchable right now.