VRO Hospitality plans to enter into cloud kitchen space

The expansion will be done with the help of the capital raised in Series A funding

After raising $3 million Series A funding, Bangalore-based VRO Hospitality has plans to enter into cloud kitchen model pan-India. The brand is now on an expansion mode and will start with three different brands ie Burgers and Beyond, Holy Doh Pizzas and Smashed and Whacky Chang at no extra cost. Once, the brand will hit about 30 outlets, it will have about 50-60 dark kitchens operating out of them.

“For the hospitality industry, cloud kitchens emerged as a means to survive the pandemic and now have potentially turned into an industry that according to estimates, can be a two billion dollars industry by 2024. Cloud kitchens are expected to add 10 per cent to the top-line revenue and a safeguard against any losses incurred from the physical restaurants,’’ said Safdhar Adoor, co-founder, VRO Hospitality.

“For businesses that are designed for dine-in, profits from cloud kitchens cannot drive profitability. However, cloud kitchens are sustainable as a standalone business since they are easy to start, require less operating cost and lower rents. It has offered any serious player a level playing field irrespective of how deep pockets one may have,” said Sharath Rice, co-founder, VRO Hospitality.

“We had to survive the pandemic and hence VRO forayed into cloud kitchens with three diverse brands from our existing kitchens. Cloud kitchen is a pure tech-first play and VRO aims to create a digital ecosystem that allows its cloud kitchens to not only offer its customers a seamless diverse experience but also drive profitability,” added Dawn Thomas, co-founder, VRO Hospitality.

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