 pandemic in the late 2019 early 2020 there was a very clear trend of people moving to online first brands for ordering and the Genesis actually is a few years back where online ordering was becoming a very big thing in India and globally and what was happening was a lot of old school restaurants were not able to cater to the online demands the right packaging right portion sizing delivery on time etc and that's where a bunch of cloud kitchen companies across the world cropped up and a lot of them in India as well and HeatFit was one of the leading players pre-pandemic as well the requirement was simple like single portion meals delivered fast and quick and in a neat packaging and of course there were cloud kitchen first-prem is doing well some restaurants were able to match but when pandemic came a lot of restaurants which were not focusing on delivery also started focusing because it was always a question of survival but as the pandemic started receiving people were going offline they were dining out etc and the focus of these niche restaurants and 5 star hotels went away from cloud kitchens rightly so so while at the peak of pandemic cloud kitchens online only kitchens were a big thing a post pandemic it's come down to slightly bigger than the pre-pandemic number which was the natural progression why cloud kitchens in the first place because India is a brand-staffed country but people are still ordering online so either you can order from all the big American QSR chains or you can order from this single standalone restaurant there's nothing in the middle where it's like Indian chains and that's where I think the Indian multi-brand cloud kitchen companies are fitting in which is us there's a bunch of good competitors pretty skilled up players so I believe that this 15 to 20 percent year on year growth will continue for next 10 years which will mean that in the next 10 years a lot of these cloud kitchen players including us will become a pretty large part of the Indian F&B ecosystem and in many cases even surpassing the American QSRs There have been cases of unhygienic kitchens and outlets it's not a new problem you know if you look at any restaurant any average restaurant if you go into that kitchen it's a very common saying that never go into the backside of a restaurant because you'll never come back to that restaurant because it does still scale kitchens or large scale kitchens have traditionally been like that but there are new restaurants which are breaking that norm and they're really hygienic likewise any cloud kitchen can have either very clean kitchens or bad kitchens but if you are a subscale fly-by-night kind of an operator there will be issues of unhygienic kitchens but if you look at any scaled up player you know there will be standard norms to be taken care of so yeah I know of examples where they have been very very bad cases but even platforms like Zomato and Swiggy continuously deal with them customer rating at the end of the day takes care of everything so whether players like us can come together and solve for it yes we can solve for it by just making sure we are doing really well and customers will start moving all their orders to us and our similar competitors who are maintaining standards but I think in hospitality industry being able to cater to really hygienic food is a tough problem and that's exactly why people keep moving to brands from standalone restaurants food is one category which is which is unlike other consumer categories has distinct segments and one customer actually plays across many segments it's not like a washing powder or cooking oil once you've moved on from a segment or a brand to a brand B or segment B then you stick around for a very long period from FNB consumption point of view that's 28 consumption points in a week seven times a week four times a day lunch dinner snacks breakfast whatnot and all of these have very distant consumption patterns in a breakfast on a Monday versus a breakfast on a Friday on a brunch on a Sunday dinner on a Saturday they all require different cuisines and also different price points one very unique thing about food is also that consumers are not stuck to only premium or only mass a customer will go to a chart place also and also dine at a 5 star restaurant and that's why for anyone to have a flow of orders through the day you need multiple brands imagine a cloud kitchen like ours if we didn't have a breakfast brand and a snacks brand we will not have any orders till lunch or dinner so which is why we need multiple brands and likewise if we didn't have multiple cuisines like how can only a pizza player only a biryani player get enough number of orders through the day so from a profitability point of view from getting the customers to come back from a getting to customers to repeat you need a multiple set of brands and that's exactly what we're trying to do the filter for you know shortlisting these brands etc is of course customer love so on swiggy's matter what are the ratings on google reviews what is the rating what are the retention cohorts like what is their profitability like so that's the standard approach but we want brands which are which have shown product market fit and have clear customer love out is a very large one at during pandemic a very small part of that has moved online where people now can at least think of celebrating indoors they can watch a match to get their friends at home but it will continue to be very very social this whole celebration aspect and most of it actually happens in offline locations because people also want to step out so a large part of the weekend ordering actually happens outside of home and we don't want to miss out on that a lot of our brands are very celebration based we have Sharif Bhai biryani which is a very large biryani play where people can go out in families or as friends and order biryani and eat there we have a pizza brand called nomad pizza which is a very very high-end experience of eating a pizza while at home you can get a large part of that experience but eating a pizza really there piping hot is a different experience so I think that if you really want to cover all 28 meals slots that I spoke of it's super important to have at least 20 30 slots with offline ordering and so that's the share of business that we envision I think in a couple of years time 25 percent of our revenue or 30 percent of our revenue will be offline while we continue to build our core thesis of online first business I come from a family business but you know I was also very clear that I didn't want to join my family business because while it's a great business it's running at a decent scale but it's not the kind of impact that I wanted to create not in terms of monetary impact but being able to create a brand or being able to create employment for so many people so I think it became very clear while I was at IIT and which is why after IIT I did not take up a job and I started Youthpad right away and Youthpad was social media tool we're trying to create a brand marketing experience for brands targeting youth at that time it did not take off after running it for a good two and a half years I was fortunate enough to run it to you know Flipkart founders and became part of their team very very early on and then of course the next six and a half years were incredible I think whatever we all have created I think the Flipkart mafia is a pretty known term and kind of companies that have come off of Flipkart mafia is incredible I think those stories just happen once in a lifetime cure fit was right after Flipkart created a bunch of house of brands whether it's cult whether it's eat fit care fit mind fit and whatnot cult and eat fit was part of the cure fit and now at during the pandemic we saw a very strong opportunity to build cloud business and we hyped off the cloud business to now be a multi-brand cloud business right now we've already crossed the 600 crore ARR and on way well in the boys are getting 700 crores in the next couple of months so I think a large part of the growth from the 650 to 1000 is going to be organic growth we already have 200 plus locations out there as a combination of online and offline and I think about half of that growth will just come from the same store growth which you know we already have at least 100 crores new additional revenue annualized revenue will come from our offline foray like we already spoke about in the past that we're looking to launch 30 to 35 new offline outlets most of these offline outlets actually come with very high revenue base because they are like mid-sized a lot of a lot of customers walk in so I believe 50 percent of our growth from now on will come from same store growth and 50 percent will come from the new offline stores that you open India as a country we as a industry and Kyofu is a brand we all have some significant momentum it's the best time to build and continue in the game Anand Mahindra Indian food