Zomato is launching infrastructure services for restaurants, starting with Dwarka, the company mentioned in a blogpost. The infrastructure service will essentially provide partner restaurants with a kitchen in a city or location they aren’t based in, so they can sell food outside their home markets.
The company will run the pilot at Dwarka for 2-3 months, and mentions that it will not look to open further kitchens till it gets this one right. According to the company “Once we learn the business model’s nuances, and reasonably know how to bypass Murphy’s law, we will expand to 5 locations very soon.” It estimates that it will open in 100 locations by the end of 2018.
The initiative will provide restaurants with kitchens, which will have to be manned by the restaurant’s employees. The hotels will share kitchens with four other players, with each restaurant getting around 300 sq ft of area for cooking. Zomato will also curate the institutions that will be allowed to use the kitchen service, although it mentions that restaurant will be free to walk away at any point.
Interestingly, Zomato mentions that these kitchens will be provided by the company for free for restaurants as a part of the ‘infrastructure’ service, and that restaurants will not be expected to be exclusive to Zomato and can sell on other aggregators. However, the company mentions that, “In general, any new business by us will not misuse the scale of any of our other businesses. All new businesses are expected to become successful on their own, on the basis of their standalone P&Ls.”
Swiggy kitchen: Note that last month food aggregator Swiggy launched ‘The Bowl Company’ its own kitchen in select areas in Bangalore, wherein the company would take care of providing the kitchen, payments and deliveries. The items offered from partner restaurants would be listed under ‘The Bowl Company’ a Swiggy spokesperson told MediaNama.