Back on the menu

Food start-ups have been an enthusiastic, energetic bunch that suddenly hit a turbulent phase some time ago.

The likes of Eatlo, iTiffin, Dazo, TinyOwl and others shut shop after making much noise with their marketing and discount offers.

But these setbacks have surely not dented the spirit of entrepreneurs who perceive food, rather food and beverages, to be a high-growth sector holding tremendous potential.

Going much beyond the food ordering-delivery-restaurant aggregator business models that earlier strived to work some magic, ventures such as The Chef Post, RAW Pressery, FreshMenu are trying to lure in consumers through distinct set-ups.

Started just a few months ago, The Chef Post is a B2C digital platform enabling and facilitating a new market space for food and beverage (F&B) promotions with chefs at the forefront. RAW Pressery meanwhile is a beverage maker promoting ‘fresh juices, smoothies, soups and nut milk’ in organised retail. FreshMenu calls itself a tech-enabled food company with its own team of chefs, something of an online restaurant.

“Food as a segment is always in for big demand,” says an analyst who works closely with food tech start-ups.

India’s F&B industry is thriving, and is predicted to reach Rs 3.8 trillion by March 2017, as per a report by Grant Thornton India and Ficci.

“But the space witnessed a lot of ‘me-too’ start-ups mainly based around the food ordering and delivery model. There wasn’t much novelty in the business models and it somewhere created tense moments for entrepreneurs, some of who decided to shut shops,” says an analyst who works closely with food tech start-ups, adding that both investors and consumers are hungry for ‘niche, novel ideas and not run-of-the-mill ventures’.

FreshMenu’s founder Rashmi Daga feels that turmoil happens in all sectors, not just in food. “Entrepreneurs have different ideas and execution strategies. It’s ultimately all around providing convenience to customers.”

Sneha Chandrashekar, co-founder and CEO of The Chef Post says the venture provides a new perspective for hotels to promote their F&B by having chefs at the forefront, while at the same time giving consumers a channel to interact with chefs, select recipes, check out chef-curated menus, read engaging content and get to know unique offers at hotels.

“The biggest challenge that any F&B outlet faces is footfall and brand recall. My personal experience tells me that the big difference to a dining experience is made when a chef plays a direct role by talking, telling stories and enlightening the guests about the food they are relishing. That’s when the idea of The Chef Post crystallised,” says Chandrashekar.

RAW Pressery’s Founder and MD Anuj Rakyan on the other hand sensed tremendous demand for fresh juices and smoothies in the organised retail space.

“India is the largest consumer of fresh juices globally. But in organised retail, the juices and smoothies that are available are all canned. And that’s exactly where we come into the scene.” Rakyan adds that the demand for fresh beverages is very high and over 5 lakh units of RAW Pressery beverages are consumed on a monthly basis across the metro cities.

The entrepreneurs feel F&B as a holistic concept is a bankable product or service that will attract the right investors at the right time. And with that in mind, they are looking to grow.

The Chef Post will soon launch iOS and Android apps. “We currently collaborate with 15 luxury hotels in Bangalore. We are keen on reaching out to many more hotels in the city and would engage with luxury hotels in Mumbai and New Delhi as well,” says Chandrashekar.

For RAW Pressery, from 800 points of sale, the venture will look to reach 1500 points of sale by March. “Our beverages are also available in five-star hotels, cafes, corporate offices and schools.”

FreshMenu, however, will consolidate itself further in its existing cities of Bangalore, Mumbai and the NCR before eyeing more markets.