In the initial phase of this expansion initiative, the brand intends to launch four cloud kitchens, with the objective of attracting half a million discerning customers within the city over the next two years. This strategic expansion aligns seamlessly with Salad Days’ overarching growth strategy, which focuses on solidifying its presence in three pivotal metropolitan areas: Delhi-NCR, Bangalore, and now, Mumbai. Leveraging its proven track record of serving over one million unique customers in Delhi-NCR and another 100,000+ in Bengaluru, the brand aims to make a substantial impact in the bustling metropolis of Mumbai.

Expressing his excitement for the Mumbai expansion, Varun Madan, Founder & CEO, Salad Days, said, “The launch of our first cloud kitchen in Mumbai is a big milestone for Salad Days and sets the right tone for our growth plans for 2024. Mumbai presents a thrilling opportunity for us to bring our various offerings to its residents and align with their food habits. Drawing from our successful experiences in Delhi-NCR and Bengaluru, we are confident that our quality, consistency, and taste will win the hearts of our valued customers in Mumbai as well. We are also exploring strategic avenues to raise funds that will further support our expansion and enhance our presence in key markets.”

Since its establishment in 2014, Salad Days has shown a commitment for promoting a healthier lifestyle through its tasty and nutritious meals. The brand believes that salads are not just sides, but rather full and satisfying meals that can contribute to one’s overall well-being. By offering affordable, healthy, and delicious food options, Salad Days aims to position salads and other nutritious meals as regular meal choices in Indian households.  

Salad Days’ health-focused menu features salads, grain bowls, baguette sandwiches, pita pockets, overnight oatmeal bowls, soups, cold-pressed juices, smoothies, and desserts. It also caters to diverse dietary preferences such as Keto-friendly, vegan, detoxifying, gluten-free, and lactose-free. The brand currently sells its offerings through home channels as well as through leading food delivery aggregators Swiggy and Zomato.  

The brand’s vision is to make salads and other wholesome choices a regular part of Indian households’ dining habits. The brand has a network of 15 strategically located cloud kitchens in the Delhi-NCR and Bangalore regions. Additionally, the brand operates two central kitchens and an organic farm in Vasant Kunj (Delhi), cultivating a variety of fresh produce for its menu.

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Outside eating is evolving

According to the latest report titled “Winning Recipe for Food Brands in India” by Redseer Strategy Consultants, dining out has become a customary practice rather than an occasional indulgence for urban Indians residing in metropolitan and Tier 1 cities. This shift is underscored by a notable surge in the frequency of dining out, with a 30% increase observed among students and young adults, and a 20% increase among mid-lifers compared to figures from 2018.

The report identifies a growing demand for variety and an increased focus on quality among consumers. This trend is compelling both established brands and emerging players to actively participate in the culinary market landscape. “Brands are also leveraging this opportunity and scaling their presence in the India market, which is expected to drive the organized food services market from $30 billion to $60 billion by 2028,” says the report.

Brands need to tap into multiple cuisines

The Indian culinary landscape boasts a remarkable diversity, with discerning tastes that vary widely across regions. This diversity is very evident in the Biryani category, which features a myriad of regional variations such as Lucknowi, Kolkata, Ambur, and Hyderabadi, each reflecting the rich culinary heritage of India.

However, this diversity also poses challenges for standalone brands aiming to scale their operations beyond a certain threshold. “The Total Addressable Market (TAM) for a particular cuisine, such as biryani, may be limited within a single city or region despite the vast potential of the overall market. In a typical metro city, the organized market size for biryani might range from INR 800-1,200 crore within a larger INR 20,000-30,000 crore category,” says the Redseer report.

As per the report, “For brands operating solely within a single metro city and focusing on a specific cuisine, achieving a revenue target of INR 100 crore becomes particularly challenging. To reach this target, a standalone brand must capture a significant market share, typically ranging from 10-15%. This presents a formidable hurdle for brands seeking to establish themselves in the competitive culinary market.”

The House of Brands advantage

Amidst the formidable challenge of securing significant market share faced by standalone brands, the House of Brands (HoBs) strategy has emerged as a highly effective approach for scaling food brands in the Indian market. HoBs, which encompass multiple brands spanning diverse cuisines under a unified entity, exhibit average revenue that exceeds fivefold that of standalone brands.

This heightened revenue performance is attributed, in part, to the expansive reach of HoBs across various cuisines and meal slots, allowing them to tap into a larger Total Addressable Market (TAM). Additionally, the strategic sharing of resources within the HoB framework enhances kitchen utilization rates and fosters improved operating leverage, resulting in reduced Costs of Goods Sold (COGS). These synergistic advantages fortify the competitive position of HoBs within the market landscape.

According to the Redseer report, “Successful House of Brands are characterized by their focus on two critical aspects. Firstly, their ability to build and scale multiple brands across diverse cuisines, thereby capturing higher revenue potential rather than being dependent on their anchor brand. Secondly, driving operational excellence through measured geographic expansion, strong consumer funnel and optimized capital & operational expenditures.”

Rohan Agarwal, Partner, Redseer, observes: “Indian food market will need lot more of mid-sized brands than fewer mega brands owing to the diversity it brings. House of Brands playbook has been successful in this context. It is particularly heartening to witness the new-age homegrown house of brands leading the charge by building multiple sizable brands already.”

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