ITC is gearing up to expand its cloud kitchen venture into key markets such as Mumbai, Delhi, and Kolkata. The conglomerate, which is currently offering North Indian lunch and dinner options alongside bakery products through various food delivery applications, is contemplating the introduction of breakfast and oriental cuisines to diversify its portfolio.
This innovative business model revolves around a central kitchen supported by multiple satellite kitchens, aligning seamlessly with the preferences of popular delivery platforms like Swiggy and Zomato, which favour a network of kitchens every 2.5–3 kilometres.
Referred to as “food-tech” within the company, this venture is identified as a significant growth driver for ITC. Currently managing three brands—ITC Aashirvaad Soul Creations for North Indian comfort food, ITC Master Chef Creations for North Indian gourmet cuisines, and ITC Sunfeast Baked Creations for bakery products—ITC already operates 19 cloud kitchens in Bengaluru and four in Chennai, all of which have achieved profitability.
It is important to note that the ITC cloud kitchen’s average order value is Rs. 900, doubling the industry average. The venture distinguishes itself from ITC Hotels’ kitchens through a 5% goods and services tax (GST), in contrast to the 18% GST applicable to hotel restaurants, and its quick-service orientation. Having successfully fulfilled over one million orders, the cloud kitchen business holds considerable potential for expansion.
Hemant Malik, the executive director, emphasized, “We have a winning formula, which includes established brands with inherent credibility, cuisine supported by ITC Hotels’ chefs, and the capabilities of the packaged foods business.” This strategic move positions ITC to capitalize on the growing demand for cloud kitchen services and further strengthens its foothold in the food-tech sector.