Faasos Business Model: Mastering The Cloud Kitchen Concept

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Faasos Food Services Pvt. Ltd a.k.a Faasos is an online food delivery firm that was founded in 2011 by Jaydeep Barman and Kallol Banerjee. This Pune headquartered “Food on Demand” company operates in 16 Indian cities. Faasos has pioneered the concept of “Food on Demand” as it is one of the rare companies in the online food ordering business in India that caters to all the three stages of food– Ordering, Distribution, and Order Fulfilment.

Faasos Business Model: Adopting The Cloud Kitchen Format

Faasos, in early stages, had followed a ‘Quick Service Restaurant’ model rooted in Domino’s market expansion strategy. However, given the changing dynamics in the online food ordering business and the entry of newer players like Zomato and Swiggy, Faasos, a predominantly wraps chain, disrupted its QSR Business Model and included aggregation, delivery and sourcing. This led to the inception of the cloud-kitchen model wherein Faasos also hosted four in-house brands. Oven Story, Kettle & Eggs and Behrouz were the brands that Faasos offered. In this way, Faasos could multi-task using the same kitchen, common ingredients and same staff to fulfil orders for varied brands.

The seeds of adopting a cloud kitchen model took shape in 2014. This was a time when food technology was going through a transition period. Food aggregators like Zomato and Foodpanda were gaining momentum and Swiggy had just entered the market. Cloud kitchen format helped Faasos from being perceived as an affordable fast food brand to a multi-brand platform. Turning cloud kitchen into a multi-purpose one to cater to a wider clientele base took shape. Faasos expanded its reach through a few small kitchens and targeted customers around such kitchens through their app as well as 3rd party podiums. The menu was tweaked and consumer feedback was gained at a much lower cost and time.

The cloud kitchen model helped Faasos break from the constraints of offline models. Instead of searching for locations for its stores, Faasos was now looking at localities that could be easily scaled through its cloud kitchen format.

As of today, Faasos operates about 160 + kitchens that offer meals from four different brands. So, the same customer can now order a wrap for snacks and a biryani for lunch/ dinner.

The iterative design of its cloud kitchens has led Faasos to drive demand while delivering scalability and unmatched economies.

This Kitchen-Based Model of Faasos has given the company complete control over the process and quality of food. It has its own team from cooking, packaging and delivery. Faasos has in-house dedicated teams to cater to each department in the food ordering realm. This has helped Faasos to achieve profitability.

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