Cloud Kitchen Giant’s Offline Expansion Strategy
Curefoods, a prominent player in India’s cloud kitchen segment, is placing a significant emphasis on its offline expansion as it aims to diversify its revenue streams. Founded by Ankit Nagori in 2020, the Bengaluru-based company is gearing up to strengthen its offline presence by scaling up its outlets and brands across various cities in India.
Offline Outlets Expansion Plan
Currently operating 75 offline outlets spread across 10 cities, Curefoods has ambitious plans to expand its offline footprint. Over the next two years, the company intends to increase its offline outlets to 125, including both quick service restaurants (QSR) and casual dining establishments, spanning 20 cities. Simultaneously, it aims to expand its online cloud kitchens to 400 in 50 cities, up from the current 300 in 35 cities.
Brand Portfolio and Revenue Projection
Curefoods boasts a diverse portfolio of eight brands, catering to 10 different cuisines, including popular names like EatFit, CakeZone, Nomad Pizza, Frozen Bottle, Sharief Bhai, and Olio Pizza. Despite the majority of its revenue coming from online channels, Ankit Nagori envisions a significant shift in revenue distribution. He projects that at least 35% of the company’s revenue will soon come from offline channels, with a target of reaching 50% within the next five years.
Focus on Offline Expansion
Nagori emphasized the importance of offline expansion for achieving the company’s revenue targets. He highlighted the need to tap into community-driven categories and offline-first segments to unlock growth opportunities. For Curefoods, entering the offline market is not just a strategic move but a necessity to capitalize on untapped market potential.
Sharief Bhai Brand as Key Driver
The company has identified Sharief Bhai as its primary brand for offline expansion. With over 40 outlets already established in Bangalore, Mysore, and several cities in Tamil Nadu, Sharief Bhai plans to add 10 more restaurants across South India, starting from Kerala. Nagori emphasized the popularity of biryani as a category that encourages group dining experiences and celebrations, making it an ideal choice for offline expansion.
Revenue Targets and Financial Outlook
Curefoods aims to achieve a revenue run rate of Rs 1,000 crore in the coming quarters, up from the current Rs 820 crore. Looking ahead, the company has set an ambitious target of touching the Rs 2,000 crore mark by FY27. Additionally, Curefoods aims to achieve EBITDA profitability within the next one to two quarters, signaling a focus on sustainable growth and financial stability.
Strategic Partnerships and Investor Confidence
To support its expansion plans, Curefoods has onboarded leaders with diverse skill sets and forged strategic partnerships. Notably, Avani Davda, former Tata Starbucks CEO, recently joined the company’s board, bringing valuable industry expertise. Moreover, with marquee investors like IronPillar, Chiratae Ventures, ASK Finance, Winter Capital, and recent funding from Flipkart co-founder Binny Bansal’s fund Three State Ventures, Curefoods is well-positioned to execute its growth strategy and capture market opportunities.
Conclusion
Curefoods’ aggressive offline expansion strategy underscores its commitment to diversifying revenue streams and tapping into new market segments. With a strong brand portfolio, ambitious revenue targets, and support from strategic partners and investors, Curefoods is poised for continued growth and success in India’s competitive food industry landscape.
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