Photo - Cloud Kitchen Za | Fooddeliveryza.com
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Cloud Kitchen Za | Fooddeliveryza.com

Multibrand dark kitchen integrated with delivery aggregation

South Africa
Market: Logistics and warehouses, Food industry, Mobile applications
Stage of the project: Operating business

Date of last change: 15.09.2020
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Idea

Cloud Kitchens are also known as dark kitchens or delivery-only restaurants.
While we may use different names to refer to the Cloud Kitchen, the concept remains the same: these kitchens sell meals exclusively through delivery. Rather than cooking for eat-in diners, Cloud Kitchens cook purely for delivery, so the food that is produced there can only be delivered. We run 7 brands of cloud kitchen restaurants & deliver on Ubereats, Mrd Food and on our own platform - www.fooddeliveryza.com | We are the first vertical integration within the industry to own Cloud Kitchens & Delivery Aggregation.

Current Status

We are currently live with 2 Branches in Cape Town & cash flow positive start up from first month of Live. We have signed our 3rd location to operate from October and expect to reach 7 locations in Cape Town by end of year & operate in Johannesburg is 1st Quarter 2021.

We currently operate at about 70-90 orders a day each location across 7 brands, soon it will be at 12 brands and multiple locations which bring in bulk buying and other scaling opportunities. Our current revenues are Zar 500k / month and a cash flow positivity of about Zar 120k which we reuse for expansions.

Market

Consumer segment is predominantly 18-45 yrs old individual, couple or group of friends who are looking for last mile food delivery convenience.

We are looking to first have an atleast 15-20% dent in the food delivery market in South Africa with over 4 billion Zar spent in 2019 by end of 2021. Furthermore - once the model is perfected in South Africa - there is great opportunity to enter in other markets & fine tuning the same formula to those localized areas.

Problem or Opportunity

Restaurant industry is currently in-efficient because of Covid-19 crisis and long term drop in eat-ins at the diners. We provide multi-brand cloud kitchens to efficiently use the Kitchen capacity for existing small restaurant spaces.

For long term - we have launched our own Delivery Aggregation - www.fooddeliveryza.com to bring the best value meal delivered to consumers. Food Delivery Aggregation is loss making around the world, Cloud Kitchen's biggest cost is 3rd party aggregation fees, we are bringing in the biggest vertically integrated value chain for meals. Also - our food is yum!

Solution (product or service)

We produce some amazing food across the following brands:

Exotic India, The New York Burger Company, Health Wrap Inc., Great Gatsby Co., Dragon's Chinese, Pizza-Box, Nomad Bistro & Bar, Boer & Boerewors Gourmet Grillhouse, Fat Dawgs Sausage Diner, My Vegan Chef, Tokyo Sushi Club, Taco Town - Mexican Restaurant.

Also - we are into fleet management & delivery Aggregation with www.fooddeliveryza.com with UI capabilities as good as some of the best applications in the world.

Competitors

Other restaurants / cloud kitchens via delivery aggregation like Ubereats.

Essentially other restaurants have heavy overheads for sitdowns, decor, signage etc, where a dark kitchen does not need to. A multi-brand dark kitchen allows for change in consumer behaviour, so they can be a direct competitor. They rely on only Ubereats / MRD Food / Zomato to deliver food and hence are at the mercy of delivery aggregators who have different goals.

We deliver on other platforms but the biggest value clain is on our own Delivery Aggregation platform. We can deliver better food with a bigger value proposition with positive cashflows as a multi brand cloud kitchen with their delivery aggregation.

Advantages or differentiators

Veritical integration of multi-brand cloud kitchen with delivery aggregation. We are a true hybrid model - which eliminates the over-reliance of the 2 major factors which make or break cloud kitchens or close down loss making delivery aggregation.

Finance

Few of the main things we track on Revenue & Costs are - Total Revenue & Costs per location, Revenue per Brand per location & per day, selling price per meal, cost of per meal including and excluding cost of fixed overheads divided by target capacity, target capacity of meals per day / month and achieved total target in volumes, substitution cost for ingredients for margin improvement, delivery fees per meal, deliveries per driver, delivery turnaround time etc. We have a full unit economics model for our Cloud Kitchen, Delivery Management & Delivery Aggregation. Over the next 2 yrs we expect to be in 300-500 million Zar revenue numbers in SA, over the next 5 years we expect to be a major player in atleast 5 countries in the world.

Business model

Multi-Brand Cloud Kitchen Management with Food Delivery Aggregation.

Our Cloud Kitchens deliver on other platforms but the biggest value clain is on our own Delivery Aggregation platform. We can deliver better food with a bigger value proposition with positive cashflows as a multi brand cloud kitchen with their delivery aggregation.



Money will be spent on

Better the technology, streamlining the processes, using more tech driven - less data entry manual process, expansion into more kitchens, better training program, a shot of tequila with like minded people.

Offer for investor

We are valuing our current start up at 25 million Zar - as is today. Minimum involvement at 1 million Zar to hold equity.

Team or Management

Risks

In case the consumers are not happy with the quality & taste of food itself, can be a major factor in the market.

Other delivery aggregators like Ubereats, Mrd food & Zomato are very heavily backed with VC funding and hence it is difficult to compete with them on delivery aggregation. If existing major Chains incorporate multi-brand cloud kitchen from their 100s / 1000s of locations effectively - they could potentially be the biggest threat in the industry.

Incubation/Acceleration programs accomplishment

Unsure what this means. But I have been a serial entrepreneur with several businesses before Covid-19 crisis. So we just started-up with remaining savings and bootstrapped the venture. We are green and trying to grow from there.

Won the competition and other awards

Well - we made and gave away Awards to 120 industry leaders under my brand - Cape Town Experiences Awards 2019.

So yep - awards are just that, basic recognition for those who seek. We like to concentrate on the real product and the market, validation is when 1000 consumers order every month, every week, every day, every hour & min.

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video