Food delivery startup Swiggy will partner with dine-in brands and restaurants to co-create delivery-only menus. The startup on Wednesday launched a new cloud kitchen brand name 'BrandWorks', which Swiggy said will serve "unmet consumer needs" by co-creating new kitchens within a restaurant partner's existing dine-in facilities.
BrandWorks will largely target big dine-brand chains such as resto pubs, bars, and fine-dine restaurants, said a Swiggy spokesperson over the phone. By allying with dine-in restaurants, the delivery startup is targeting those brands that may not be able to cater to online orders, since such kitchens focus on making money from dine-in or fine-dine options.
BrandWorks will further plugin its capabilities such as menu intelligence, brand development and data analytics to its restaurant partner, the startup said in a statement. Based on previously accumulated history of orders and consumer data available with Swiggy, restaurants can cater to cuisine and dish choices within hyper-local geographies.
Swiggy already has 100 such brands set-up under the new ‘BrandWorks’ business through a partnership with 95 restaurants in 13 cities. The startup already works with New Delhi-based Bercos Restaurant, to co-create Thai and Chinese ‘brand House of Chow’, and other brands such as ‘Kitchens of Punjab’ and ‘Kitchens of China’ co-created with Bangalore-based Gilly’s Restobar.
Gilly’s will additionally look to expand delivery-only brands—Kitchens of Punjab and Kitchens of China—into a dine-in brand sooner, the spokesperson added.
Swiggy said that the new business proposition “does not cannibalize the restaurant’s existing dine-in business" since the restaurant partner gets incremental revenue from new delivery-only brands.
Furthermore, BrandWorks partners will partner only with those restaurants and brands which according to Swiggy has “ability to create great culinary experiences".
Since its launch, BrandWorks has been experimenting with cuisines such as Chinese, American and North Indian with food varieties like burgers, pizzas, rolls/wraps and desserts among others. Swiggy currently has 100 such brands on its platform that were co-created with 95 restaurant partners across 13 cities.
Swiggy is also lining new brands such as 'The Story of a Chinese Chef' from Chennai, 'Baba Yega Burgers' from Jaipur In addition, brands like Burger it Up from Bangalore and Royal Handi from Udaipur are looking at intercity expansion through BrandWorks, Swiggy said.
On the launch of BrandWorks, Vishal Bhatia, CEO – New Supply, Swiggy, said that the startup aims to co-create hundreds of new delivery-only brands with multiple restaurant partners across the country by the end of 2020.
“Both models offered by Swiggy complement each other - Swiggy Access (cloud kitchen business) facilitates the easy expansion of restaurant brands across locations while BrandWorks helps restaurant partners expand their brand portfolio using existing kitchen space and culinary abilities. Additionally, the BrandWorks model can be scaled faster across markets to create more high-quality food choices for consumers due to its low entry barriers," Bhatia said in a statement.
“Swiggy’s insights on consumer needs in the locality and expertise in brand creation has been crucial. They have helped create a strong line of revenue that did not exist a year ago and it wouldn’t have been possible without Swiggy’s support. Today, Kitchens of Punjab is already amongst the top 5 North Indian delivery brands in Bangalore," Gurupreet Singh Bali, Managing Partner, Gilly’s Restobar said in a statement.