ITC’s foray into cloud kitchens is a compelling example of how legacy businesses can adapt and thrive in today’s digital-first world. ITC identified a fast-growing opportunity at the intersection of its enterprise strengths, food service and technology. What started as a quiet experiment has evolved into a strategic initiative with sharp focus on innovation, digital agility, and consumer-centric growth.
The journey began in 2019 with a focused pilot operating from ITC Windsor’s backend kitchen in Bengaluru. There was no fanfare—just a clear goal to explore a new vector of growth where ITC’s strengths in packaged food, culinary excellence, brand equity, and operational discipline could be fully leveraged.
ITC’s cloud kitchen venture was inspired by a simple but powerful insight: Food habits in India were changing irreversibly. While dine-in experiences would continue to matter, convenience, hygiene, and taste delivered to the doorstep were becoming the new consumer expectations. The Covid-19 pandemic merely accelerated the food delivery business, which was already underway.
But the real challenge for ITC lay in translating its culinary pedigree into a format that would resonate with digitally native, time-starved consumers—without compromising on quality, trust, or brand ethos. “After my time at Stanford, I wanted to apply what I’d learned,” says Bhalla, a chemical engineering graduate from IIT Delhi, who joined ITC in 2006 and has been with the organization since then. In 2018, after 12 years of working with ITC in different areas, including the tobacco division, supply chain, and factory operations, he took a sabbatical to attend Stanford’s Graduate School of Business. There, he was exposed to the entrepreneurial spirit of Silicon Valley, participating in programs like Startup Garage where he developed and pitched ideas. However, he felt drawn back to
India and ITC.
Back at the company, with Chairman’s guidance to focus on opportunities at the convergence of digital, sustainability, and enterprise strengths, Bhalla developed a business case for ITC to step into the fast-evolving world of food tech and cloud kitchens, and taking on a broader role in food services. “I saw food-tech as a clear opportunity for ITC—not just to expand, but to lead.”
The timing couldn’t have been better. India’s food delivery market—valued at $8–9 billion in 2019— was on track to grow 4–5 times by 2030, driven by shifting consumer habits and rapid digital adoption. Yet, ITC wasn’t interested in simply riding the wave. Instead, a distinctive path was set out for ITC’s food-tech venture—one focused on long-term value creation rather than chasing short-term scale.
This meant building a full-stack food-tech platform right from scratch by combining culinary innovation, tech-enabled operations & delivery, and thoughtful packaging—everything tailored for a delivery-first, digital-native consumer.
From Five-Star Kitchens to 45-Minute Deliveries
At the heart of this transformation lay a bold question: Could ITC’s five-star culinary heritage be leveraged to create a meal that arrives, hot and flavorful, in just 45 minutes? The answer was a resounding yes—and the execution made all the difference.
It started with ITC Hotels’ culinary talent. Instead of launching unknown brands, ITC extended the credibility of its well-known packaged food brands into the food delivery space. This approach built instant consumer trust and enabled the company to focus on food quality and delivery efficiency. Bhalla emphasizes, “We have always had that rich culinary expertise. Our goal was to use it to create delivery food that stands out—crafted specifically for the format, while staying true to its roots and maintaining a high standard of flavor and consistency.”
The result was a carefully curated portfolio, and a bold brand architecture central to the ITC cloud kitchen strategy. Rather than consolidating under one banner, the venture unfolded as a house of brands, each serving a distinct consumer mood and meal occasion.
ITC Aashirvaad Soul Creations offer wholesome and nutritious Indian meals at affordable prices, featuring Khichdi, simple home-style curries, and millet-based options that taps into traditional preferences and health-conscious trends.
ITC Master Chef Creations target the premium segment with gourmet North Indian dishes like Dal Makhani, Biryani, and Kebabs—delivered with the finesse of a restaurant experience at home.
ITC Sunfeast Baked Creations mark the brand’s evolution from cookies to artisanal bakery offerings, including Croissants, Bagels, and fine breads tailored for Indian palates.
Sansho by ITC Master Chef signals ITC’s entry into modern, delivery-focused pan-Asian cuisine. Initially launched with Chinese and Thai dishes, the brand aims to expand into Korean and Japanese flavors, catering to the preferences of millennial and Gen Z audiences through bold, trend-driven offerings.
This multi-brand matrix did more than create variety. It allowed each kitchen to become a multi-dimensional revenue center, serving breakfast, lunch, dinner, and snacks—across need states, cuisines, and price points. It was the retail shelf philosophy applied to the delivery grid: maximize throughput, minimize redundancy, and always stay consumer-first. While each brand was crafted to serve a distinct consumer need, backed by data-driven insights and culinary R&D, the innovation didn’t stop at the menu.
Designed for Delivery, Built for Scale
Where traditional restaurants often treat delivery as an add-on, ITC built its operations with delivery at the core. Every process—from product development to packaging—was optimized to ensure a high-quality delivery experience. Food was engineered to remain flavorful and texturally pristine 45–60 minutes after preparation, a critical factor for customer experience in delivery. As a case in point, ITC leveraged Aashirvaad Atta’s product development and manufacturing capability to develop a custom blend for phulkas served by Aashirvaad Soul Creations, so as to deliver a soft and fluffy experience even after 45-60 min of preparation. Packaging was developed to be spill-proof, microwave-safe, and eco-friendly—reflecting ITC’s commitment to sustainability and functionality. “Our hot food packaging is zero plastic, aligns with ITC’s core philosophy of sustainability, and is 100% microwave-friendly, so you don’t need to transfer food for reheating,” Bhalla explains. “We don’t have a dine-in ambience to create a first impression. Our packaging must convey quality, elegance, and convenience.”
ITC has also implemented a tech-enabled hub-and-spoke model, with central kitchens in metro hubs and satellite kitchens placed for hyperlocal delivery. Locations were selected using regional food preferences and logistical data to ensure timely delivery and consistent quality—two common challenges in scaling food service operations. ITC is driving consistency in product experience through it’s tech-enabled model and standardized processes.
Bhalla emphasizes the importance of hub-and-spoke model, tech-enabled operations and application of food science to deliver consistency at scale. “For most food tech players, delivery is just another revenue stream. They simply send out what they serve in-house. For us, every element—product, packaging, process—was designed specifically for delivery.” Towards this, ITC is leveraging its industrial-scale food manufacturing backend for bulk preparation of gravy bases with proprietary recipes and ingredients so as to achieve consistency at scale. It is also tapping into the bulk procurement engine of the foods business to achieve consistent ingredient quality along with efficiencies in procurement.
A Strategic Expansion Philosophy
ITC rolled out its cloud kitchens gradually to prevent the pitfalls of rapid, uncontrolled scaling. The company has expanded city by city—first Bengaluru, then Chennai and Hyderabad, followed by launches in Mumbai and Pune. Each new market was treated as a micro-market, shaped by local insights, with a precise number of kitchens deployed to meet regional demand.
“We embraced a tech-driven approach to expansion. We don’t believe in spreading thin. Each city is scaled carefully with a focus on customer experience and operational readiness,” Bhalla explains. Bengaluru alone now has 24 kitchens; Chennai and Hyderabad follow with 11 and 10 respectively.
With a premium brand portfolio at an average order value of Rs. 650+ —well above the industry norm— ITC has built a financially viable model. Its premium positioning and superlative customer experience has made it a leader in select segments within just a few years. “We’ve become market leaders in the premium North Indian delivery space in Bengaluru,” Bhalla says. “Now we’re working toward replicating that success in other major cities, with the west region next in focus.”
Looking ahead, ITC’s cloud kitchen business is gearing up for pan-India expansion, with plans to enter key new markets such as Delhi and Kolkata, while deepening its footprint in existing cities like Bengaluru, Chennai, and Mumbai. This growth is underpinned by a robust and scalable operational model, supported by a diverse brand portfolio that appeals to a wide spectrum of culinary preferences—from traditional Indian meals to gourmet offerings and artisanal baked goods.
But the cloud kitchen venture is not just about geographic expansion; it’s also becoming a powerful engine of innovation across ITC’s broader ecosystem. Learnings from the cloud kitchens are now feeding into ITC’s FMCG innovation pipeline, while existing FMCG brands like Yoga Bar are inspiring new, kitchen-fresh offerings like high-protein breakfast bowls.
By integrating food service, retail, and technology, ITC has created a cohesive ecosystem that resonates with modern consumers seeking convenience, quality, and innovation.
Technology for Building Brand Value at Scale
What also differentiates ITC’s cloud kitchen business is the deliberate approach to building lasting value. We are focused on building Gross Brand Value. Every product, process, and technology is crafted to deliver on trust and taste,” emphasizes Bhalla. He explains that the success of ITC’s cloud kitchen venture is not just about expanding its culinary reach but delivering consistently on the quality promise by deeply integrating technology into its operations.
Proprietary platforms have been developed in-house to track various aspects of the business, from kitchen operations to customer feedback. “Through these platforms, ITC is able to digitally monitor, track and analyze every consumer order. All kitchen tasks are performed through digital checklists with image capture functionality for robust control on operations. ITC’s full-stack tech engine is under development with a clear goal of real-time visibility and automated actions on tasks critical for customer experience” says Bhalla.
From kitchen engineering and culinary innovation to smart packaging and supply chain design, ITC has created not just a food delivery business but a new kind of operating model for India’s food-tech future.
A strong emphasis on hygiene and quality control is also what complements ITC’s cloud kitchens’ technological infrastructure. Smart cameras monitor kitchen environments to ensure compliance with health standards, while kitchen dashboards optimize preparation flows based on order forecasts. This blend of technology and human oversight has created a seamless and reliable food delivery experience for customers.
Redefining Food Delivery Beyond the Cloud
As ITC’s cloud kitchen business continues to grow, the company has recognized the importance of building strong relationships with food delivery platforms like Swiggy and Zomato. Rather than viewing platform commissions as an expense, ITC sees these partnerships as mutually beneficial collaborations. By operating at a different price level and offering premium products, ITC is able to align its interests with those of the platforms, creating a win-win situation for all stakeholders involved.
This strategic approach extends to customer engagement as well. ITC is also establishing a dedicated customer experience team to handle interactions, ensuring that feedback is collected and acted upon promptly. This commitment to customer satisfaction not only enhances the brand’s reputation but also fosters loyalty and repeat business.
The company is also exploring new avenues for growth within the cloud kitchen space. The introduction of Café Sunfeast Baked Creations in Bengaluru marked the company’s foray into the omnichannel food service model. These cafés offer customers a physical touchpoint to experience ITC’s offerings, complementing the digital-first approach of the cloud kitchens. This move towards an omnichannel presence is part of a broader strategy to connect with customers across multiple touchpoints. By integrating online and offline experiences, ITC aims to build deeper relationships with its customer base, enhancing brand loyalty and driving future growth.
The Road Ahead
With over 55 kitchens across five cities, consistently high consumer love, and strong market standing in segments like premium North Indian cuisine, the foundation of ITC’s cloud kitchen business remains strong. But the vision is broader.
ITC’s vision for its cloud kitchen business goes well beyond operational success or market share. The real ambition is to build a platform that brings together discovery, indulgence, health, and cultural heritage—integrating digital convenience with the richness of real-world food experiences. This commitment to creating value across multiple consumer touchpoints marks a deliberate shift from being just a delivery brand to becoming a holistic food-tech ecosystem.
In many ways, ITC’s cloud kitchen journey represents more than just a successful new business. It stands as a blueprint for how legacy organizations can evolve with the times—leveraging their deep-rooted strengths while embracing the agility, innovation, and customer-centric thinking often associated with startups.
ITC has quietly created a new innovative business model—one that balances trust with taste, data with design, and speed with soul. This is not simply the rise of a new vertical; it is the expression of a new philosophy. A belief that when tradition is paired with technology and guided by thoughtful execution, it can unlock powerful new possibilities. For ITC, this philosophy is shaping the future—not just of its own growth—but of how modern India eats, connects, and experiences food.
