ITC Plans Cloud Kitchen Expansion into Mumbai, Delhi, and Kolkata Markets

ITC is set to expand its cloud kitchen venture into key markets such as Mumbai, Delhi, and Kolkata. Currently offering North Indian lunch and dinner options and bakery products through various food delivery applications, the conglomerate is considering the addition of breakfast and oriental cuisines to diversify its portfolio.

Operating on a business model with a central kitchen supported by multiple satellite kitchens, ITC aligns seamlessly with the preferences of popular delivery platforms like Swiggy and Zomato, favoring a network of kitchens every 2.5–3 kilometres. Referred to as “food-tech” within the company, this venture is identified as a significant growth driver for ITC. Managing three brands—ITC Aashirvaad Soul Creations, ITC Master Chef Creations, and ITC Sunfeast Baked Creations—the company currently operates 19 cloud kitchens in Bengaluru and four in Chennai, all achieving profitability.

Distinct from ITC Hotels’ kitchens, the cloud kitchen business holds considerable potential for expansion, with an average order value of Rs. 900, double the industry average. Mr. Hemant Malik, Executive Director, emphasized the winning formula, incorporating established brands, cuisine supported by ITC Hotels’ chefs, and the capabilities of the packaged foods business. This strategic move positions ITC to capitalize on the growing demand for cloud kitchen services and further strengthens its foothold in the food-tech sector.