Rebel Foods: Reinventing Cloud Kitchens through Innovative Tech

Rebel Foods: Reinventing Cloud Kitchens through Innovative Tech
Case Code: ITSY127
Case Length: 16 Pages
Period: 2016-2021
Pub Date: 2022
Teaching Note: Available
Price: Rs.300
Organization: Rebel Foods Pvt. Ltd
Industry: Foodservice
Countries: India
Themes: Innovation, Digital Strategy, Internet of Things,Business Models
Rebel Foods: Reinventing Cloud Kitchens through Innovative Tech
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses how India-based food tech operator Rebel Foods emerged as the world’s largest internet restaurant company operating in the cloud kitchen segment. Rebel Foods gained a head start as it pivoted from being a quick-service restaurant (QSR) chain to a multi-brand cloud kitchen model powered by an efficient operating system for building and scaling brands globally. From a small food joint called Faasos in 2011, Rebel Foods grew to a 4000+ internet restaurants chain with 450+ cloud kitchens spread across 50+ cities in ten countries by October 2021. Rebel Foods struck the right balance between exquisite culinary craftsmanship and technological infrastructure and built an efficient operating system with a full stack tech platform, culinary innovation center, cloud kitchen network/ supply chain, and robust operating DNA, with smart infrastructure at its core. The food-tech platform leveraged modern technologies such as IoT, AI, and robotics in all its cloud kitchens that allowed it to automate cooking processes, and keep track of inventory, procurement, manufacturing, and warehousing. Sales of food products through its network of cloud kitchens grew by 83% to Rs. 5.575 billion during fiscal 2020 as compared to Rs. 3.051 billion in 2019. In October 2021, Rebel Foods turned into a Unicorn with a funding of US$ 175 million.

Despite its stupendous success, it seemed likely that as Rebel Foods aimed to expand and grow its brands globally going forward, it would face some challenges in terms of growing competition in the cloud kitchen space, excessive dependence on online food aggregators, no direct offline relationship with customers, huge operational investments, and sustaining profits.

Issues

The case is structured to achieve the following teaching objectives:

  • Study the advantages of cloud kitchens.
  • Understand the business model of Rebel Foods.
  • Analyze the use of innovation and modern technologies in the cloud kitchen space.
  • Understand the reasons behind the success of Rebel Foods
  • Identify the challenges faced by cloud kitchens

Contents

Keywords

Cloud Kitchens; Internet restaurant; Multi-Brand Cloud Kitchen Model; Radical Innovation; Business Model; Operating Model; Technological Innovation; Full-stack technology platform

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