Fast Casual Restaurants: A segment to watch for

The growth of cloud kitchens in India is being fuelled by the increasing demand for affordable, convenient, and quality food delivered to homes. Additionally, cloud kitchens benefit from lower operational costs since they do not require expensive retail locations or large front-of-house investments.

India's cloud kitchen market is on a remarkable trajectory - projected to hit approximately USD 2.84 billion by 2030, growing at a CAGR of 16.66%. This surge reflects how urbanization, evolving lifestyles, and the demand for convenient food delivery are rewriting the rules of dining.

Prominent companies have established prosperous multi-brand cloud kitchen empires, including Biryani by Kilo, Eat Sure, BOX8, Rebel Foods (Faasos, Behrouz Biryani), and Fresh Menu. In an effort to reach hyperlocal markets, a lot of restaurants are also introducing delivery-only sub-brands, marking 40-50% profits in the space.

The Ongoing Trends
Key trends shaping the cloud kitchen industry includes the adoption of multi-brand models within a single kitchen infrastructure to enhance operational efficiency. There is a notable rise in regional and comfort food delivery brands catering to diverse local tastes. Cloud kitchens are increasingly offering value-oriented options such as combo meals, meal boxes, and affordable single-serve meals.

“Businesses are also engaging in hyper local targeting to meet neighborhood-specific demand. To build stronger brand connections, they are leveraging influencer collaborations and social media engagement. Additionally, some cloud kitchen brands are beginning to explore physical formats like kiosks and food court outlets to provide an omni-channel experience,” added Aayush Madhusudan Agrawal, Founder & Director, Lenexis Foodworks.

Without décor or ambience to soften perception, hygiene becomes your frontline. Mohammed Bhol, Co-Founder and CEO at House of Biryan said, “I’ve found that daily protocols, rigorous training, and real-time audits aren’t just safety nets - they’re confidence builders. When people can’t see your kitchen, they need to feel your standards.”

He mentioned that he has learned the hard way, if it doesn’t arrive right, it doesn’t matter how good it tasted in the kitchen. “We’ve tested every layer: insulation, ventilation, seal integrity. Packaging isn’t a side gig, it's part of the recipe,” added Bhol.

Technology as the Backbone
Cloud kitchens function without a dine-in model, making technology vital at every operational level. From online ordering systems and kitchen display systems (KDS) to inventory and supply chain management, data analytics, smart POS integration, and automated marketing tools—each element plays a crucial role in ensuring seamless and efficient business operations.

Since cloud kitchens operate without a physical storefront, food aggregators serve as their primary digital marketplace. Platforms like Swiggy, Zomato, Zepto Café, Blinkit and Uber Eats offer immediate access to a wide customer base, making them essential for brand reach. They enhance brand discovery and visibility, while also handling delivery logistics—crucial for smooth operations. 

Aggregators also provide performance dashboards with valuable insights into customer behavior, order patterns, and conversion rates, helping brands fine-tune their strategies. Additionally, aggregator-led promotional campaigns and paid placements can significantly boost order volumes and visibility.

The Challenges
Cloud kitchens face several challenges, including high customer acquisition costs driven by intense competition and platform commissions. This can be addressed by building direct digital connections with consumers through channels such as WhatsApp, loyalty programs, and emailers. 

Another challenge is the dependence on delivery platforms for visibility which can be mitigated by investing in off-platform brand-building campaigns, digital content creation, and influencer partnerships.  Agrawal added, “Maintaining consistent quality, hygiene, and delivery standards across various locations is also crucial and this requires strict adherence to standard operating procedures (SOPs) and regular kitchen audits. Lastly, in a cluttered market, it is essential to craft a sharp brand positioning and compelling product proposition to stand out.”

"Finding the right location was one of our key challenges," Aksha Kambhoj, Executive Chairperson of Aspect Hospitality explained by adding that they sought areas with high foot traffic to maximize visibility.

It’s a Profitable Biz

A well-run cloud kitchen isn’t just powered by good food - it runs on strong systems. Industry data shows that a lean, efficient model can hit EBITDA margins of 20–25%, with high-performing outlets pulling in ₹1.5–2 crore annually per location - depending on how well you read the market and build recall.

“High-performing brands have demonstrated the potential to scale even further, reaching ₹70–100 crore in ARR within three to four years, as seen in the case of Big Bowl,” added Agarwal.

While, the future will be focused on AI-powered kitchen operations, and tighter connectivity with fast commerce systems. Cloud kitchens are expected to become a major player in India's F&B industry with major focus on tier-2 and tier-3 cities.
 

Restaurant pop-ups are rapidly gaining momentum in India, not just as a culinary trend but as a strategic business and marketing tool. From experimental kitchens and chef collaborations to best bar takeovers and themed dining concepts, pop-ups are allowing restaurants and hospitality brands to stay agile, relevant, and culturally engaged.

This format offers a unique opportunity to test new ideas, like menus, concepts, or even partnerships without the long-term investment of a full-scale outlet. The trend is fuelled by social media buzz, influencer collaborations, and community platforms. With exclusivity, visual appeal, and time-bound availability, these events tap into FOMO while leveraging digital storytelling to generate viral traction and broader brand visibility. Around 80% of the restaurants in India are doing pop-ups to attract more customers.

What’s pushing the Growth?

Pop-up restaurants bring a fresh experience to a new market for a short span of time. In this type of formats, guests sample the cuisines, setting, service, etc. Pop-up restaurants are also a new way for restaurateurs to test out a product on a new market with a very low investment.

Pop-ups offer immense strategic value to restaurateurs. Ranbir Nagpal, CEO of Yazu Hospitality Pvt. Limited shared, “At KICO, we've seen how a well-executed popup can drive buzz, test new markets, and expand our brand footprint. They allow us to experiment with limited-time menus or collaborative formats without long-term overheads.”

More than just revenue generators, they’re excellent tools for community building and storytelling — particularly when done around cultural moments or niche interests like sneakers and cocktails, which are integral to our brand.

Saket Agarwal, Co-Founder, Manifest Hospitality said, “At Latoyá, we see them as cultural and culinary exchanges, an opportunity to showcase fresh ideas, collaborate with like-minded talent, and bring in footfall that extends beyond regular diners. From a brand perspective, pop-ups help build relevance and community, especially when there’s a strong concept, storytelling, and synergy behind the collaboration.

The Right Clientele

The target audience is typically urban millennials and Gen Z diners, those who are experimental, digitally active, and place a premium on novelty and curated experiences.

Angadh Singh, Co-Founder of Call Me Ten said, “While some events are priced at a premium due to their exclusivity or the involvement of celebrity chefs, others are more accessible to attract volume and footfall. The strategy often depends on the intent, brand building or revenue generation.”

Overcoming Challenges

Challenges typically lie in operational compatibility, from aligning kitchen setups to managing workflows with guest chefs or bar teams. The key is tight pre-planning: understanding their prep and service needs, doing dry runs, and keeping communication crystal clear.

Highlighting his views, Nagpal added, “We’ve learned that keeping the menu tight, using portable equipment, and pre-planning tech and design elements is key. Clear communication, a strong visual identity, and local influencer engagement go a long way in creating impact fast.

“Technology, especially tools that streamline ordering, inventory, and kitchen coordination can really help minimize chaos and maximize output,” pointed Agarwal.

The Business Scenario
A well-executed pop-up with the right audience fit can lead to a significant boost in sales during the event window and a strong halo effect afterward. More importantly, it adds to brand value and recall, which is harder to measure but incredibly important in the long run.

“In terms of business value, popups can lead to 20–30% increase in revenue during activation windows and offer huge intangible value — new customer acquisition, social media traction, and potential partnerships,” highlighted Nagpal.

While Singh added that the long-term value often lies in audience engagement, brand recall, and creating a deeper emotional connect with diners.

The future is quite certain that the trend will increase as pop-ups are no longer a novelty, they are becoming a powerful tool in a restaurant's culinary and cultural playbook.