BENGALURU: Food delivery platform Swiggy has shut down 'The Bowl Company', the cloud kitchen brand in the Delhi-NCR region. It plans to focus on its cloud kitchen business in southern cities.
It is said that Delhi-NCR was part of an experiment or pilot that the food delivery platform was running.
A Swiggy spokesperson said, “The expansion of The Bowl Company in Delhi/ NCR was an experiment we ran to bring new food experiences to users. This experiment has led to its due learnings, even as we focus on operational excellence for the brand.”
The spokesperson added that they will continue to invest and grow The Bowl Company in cities such as Bengaluru, Chennai and Hyderabad where the brand is growing. Cloud kitchen is one of the fastest growing segments, and there are various types of cloud kitchen models such as standalone, multi-brand and co-working, among others. It creates cost efficiencies in the kitchen. According to India Brand Equity Foundation (IBEF), there are over 20,000 active cloud kitchens in Delhi, and that the number is increasing by over 20% annually.
With the increased demand for online food delivery services, cloud kitchens are also thriving in the country. IBEF says by the end of 2023 and 2024, the domestic cloud kitchen market is expected to increase from $ 400 million in 2019 to reach $ 1.05 billion by the end of 2023 and $ 2 billion by 2024.
According to the Food Safety and Standards Authority of India (FSSAI), cloud kitchen entities can supply its products to multiple brands. Zomato recently said that it will manually check any physical location that runs over 10 brands out of a single location.
Innumerable brands from the same kitchen
Zomato said it will manually check any physical location that runs over 10 brands out of a single location. It said customers’ average delivery rating for operators goes down if brands from a single kitchen goes up.