`Biryani by Kilo` - A Biryani Delivery Startup’s Success Story
| Case Code: LDEN165 Case Length: 10 Pages Period: 2015-2020 Pub Date: 2020 Teaching Note: Available |
Price: Rs.300 Organization : Sky Gate Hospitality Pvt Ltd Industry :Foodservice Countries : India Themes: Entrepreneurship/ Entrepreneurial Strategy/ Platform Model/Leadership & Values |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Operations
BBK adopted the cloud kitchen model to launch its operations. Biryani was prepared in the Khansama style of cooking , in which each order of biryani was individually cooked in natural, handmade, clay handis and delivered fresh to the customer’s door. When the order was received from the customer, the chef started cooking biryani in a handi (clay pot) with steam. Instead of cooking biryanis in bulk, the company prepared it in individual handis as per the order of the customer, this took 60 -90 minutes (including both preparation and delivery time). The food was delivered in the same handi to the customer’s door with the help of in-house delivery boys or online food ordering and delivery platforms like Swiggy and Zomato ...
Promotion
In November 2019, the company collaborated with MTV and launched a campaign to promote the undying love that food lovers had for biryani. The campaign circulated the message, ‘Biryani is an emotion; it’s time to make it an emoticon’..
Pricing
Biryani of 500gm packed in the handi was priced at Rs. 350–400. That would be enough for two people. If a few parathas (layered flatbread) and kebabs were added, then it would cost Rs. 700–800. Even though the company priced its products at a premium, the authentic flavors and taste of its offerings attracted customers. The target segment of BBK was India’s youth, who were ready to pay more to get the taste of authentic biryani. BBK also focused on Family, Big Group, and Kids..
Competition
BBK had many competitors like Rebel Foods’ Behrouz Biryani, Eat.fit etc. that followed the cloud kitchen model. There were also other biryani players like Biryani Blues. Charcoal Eats, and Paradise, which used other business models but which were also competing with BBK (Refer to Exhibit I for Details of BBK’s competitors). Biryani Blues used a business model under which it owned and operated a chain of restaurants and offered biryani and Nizami dishes. Charcoal Eats followed a hybrid distribution model that included opening of both franchise and company-owned outlets in the proportion of 50:50, whereas Paradise used the model of opening Dineouts in different locations...
Road Ahead
According to a report by FICCI-PWC , by the end of 2019, the Indian organized biryani delivery market had reached around Rs 25 billion per annum, whereas the unorganized sector had touched Rs.250 billion – growing by 10 times over the previous year. The report also highlighted, “Over the last few years as food delivery apps, quick-service restaurants (QSRs) and take-away outlets have begun to dominate, biryani has emerged as an unlikely champion of India’s fast food scene, unseating pizzas and burgers.” Swiggy’s annual report for 2019 showed that on an average, 95 biryanis were ordered per minute in India. According to another report by Google and Boston Consulting Group (BCG) published in 2020, the appetite for food ordering was set to rise with India’s online food ordering market expected to grow at a compound annual growth rate of 25-30 % to touch US$ 7.5–8 billion by 2022.
Exhibits
Exhibit I: Details of BBK’s Competitors
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