The rapid increase in funds was linked to the growing demand for dining at home, leading to a rise in startups related to food technology in 2016. However, not all companies have been able to benefit from this influx of finances; many find it challenging to develop a working model because they are losing money. Fresh Menu was a pioneer in 2014 when they introduced what we now refer to as cloud kitchens. Otherwise known as ghost kitchens, these are places where meals are specifically made in quantity at a single location and then transported to different satellite restaurants. Within this framework, B2B cloud kitchens, including Hyderabad’s leading B2B FUV Cloud Kitchen, founded in 2018, cater specifically to corporate clients, addressing their needs for employee meals, corporate events, and other business-related dining requirements.
A Remarkable Growth Story of FUV Cloud Kitchen
FUV Cloud Kitchen, under the leadership of Srinivas Chakravaram, the co-founder and Director of FUV Merchandising Private Limited, has become a trailblazer in Hyderabad’s B2B corporate catering sector. Srinivas raised seed funding from a Vizag-based angel investor by demonstrating his strong track record with his successful IT venture, Yeeooh Labs Private Limited. Yeeooh Labs provides IT solutions to many SMEs and e-commerce businesses and is the technology partner of FUV Cloud Kitchen, providing supply chain and logistics tech solutions.
In recent times, FUV Cloud Kitchen has achieved remarkable success. It took only six months for the kitchen to capture 10% of the market share right after launching, with monthly revenue skyrocketing from INR 30,000 to a whopping INR 2,500,000. It was hard to believe they had achieved such an impressive growth until Srinivas amazed everyone with the daily amounts shown on his balance sheet. As co-founder, director, head of business development, and creative head of supply and logistics, Srinivas attributes this success to meticulous supply chain management and logistics.
Supply and Logistics: The Heart of Success by Srinivas’s Leadership
Optimizing supply and logistics has proven to be a game-changer in corporate food delivery. Srinivas emphasizes that the timing of deliveries, owning delivery trucks, and route planning are crucial elements that significantly impact efficiency and cost-effectiveness. Moreover, securing raw materials at the lowest possible cost is essential. To achieve this, Srinivas introduced the concept of Group Buying, a pioneering strategy in the country. Group Buying involves nearby restaurants and cloud kitchens collaborating to purchase supplies in bulk, thereby negotiating better rates with suppliers. This innovative approach not only reduces costs but also enhances profit margins, making it a vital strategy for the industry.
Transforming the Industry Landscape
Innovative strategies from Srinivas are setting a new direction for the entire cloud kitchen industry. One of the significant challenges faced by B2B cloud kitchens is their dependence on platforms like Tongue Stun, recently acquired by Zomato. These platforms typically take a 10-30% cut of the revenue, which can severely impact profitability for any B2B cloud kitchen. Consequently, cloud kitchens often have to compromise on food quality to maintain their profit margins. However, Srinivas believes that creativity in business operations, particularly in supply chain management, can circumvent these challenges. His introduction of Group Buying is a testament to this belief, providing a sustainable solution to maintain quality while ensuring profitability.
Prime limit Products Private Limited: A New Venture by Srinivas
Seeing the vast potential in the market, Srinivas has embarked on another entrepreneurial journey with the launch of Prime limit Products Private Limited. This new startup is entirely bootstrapped and focuses on both domestic and international exports and imports. Srinivas envisions this venture as a revolution in the supply and logistics industry. He plans to leverage the Group Buying model on a larger scale, creating a platform that allows buyers from various domains, including large corporations, to participate in collective negotiations. This platform aims to democratize access to better pricing for all buyers, fostering a more competitive and efficient market.
Expanding Horizons: FUV Kitchen’s Future Plans
FUV Cloud Kitchen, under the banner of FUV Merchandising Private Limited, is set to expand its innovative B2B cloud kitchen model beyond Hyderabad. With plans to establish operations in Bangalore, Chennai, and Gurgaon over the next two years, Srinivas aims to bring his successful strategies to new markets and provide formidable competition to existing players.
This expansion underscores Srinivas’s commitment to revolutionizing the B2B corporate catering landscape. By leveraging his expertise in supply chain management and the Group Buying model, Srinivas is well-positioned to replicate his success in these new cities. His focus on quality, efficiency, and innovative business practices will undoubtedly set new standards in the industry.
Conclusion
FUV Cloud Kitchen is an example of how innovative thinking and strategic planning can change an industry. By paying attention to details in his supply chain, introducing Group Buying and keeping an eye on quality as well as efficiency, Srinivas has changed the corporate dining landscape in Hyderabad. These ventures have the potential to make significant contributions to the supply and logistics sectors; among them is the promising entity Prime limits Products Private Limited.
