Swiggy of­fers re­mote restau­rant space to widen reach

Business Standard - - COMPANIES - ALNOOR PEERMOHAMED

On­line food or­der­ing and de­liv­ery plat­form Swiggy on Tues­day opened its first re­mote kitchen, at Martha­halli in Ben­galuru, pro­vid­ing restau­rant part­ners with space to ser­vice new lo­cal­i­ties.

Dubbed Swiggy Ac­cess, the ser­vice will of­fer more choices to cus­tomers in ar­eas where there is a mis­match of de­mand and sup­ply. The com­pany is also aim­ing at us­ing the cen­tres to serve more cus­tomers with its own in-house restau­rants.

“Over the years, Swiggy’s in­for­ma­tion have helped us un­der­stand that peo­ple from sev­eral parts of our cities long for bet­ter se­lec­tion of food, in­clud­ing their favourite restau­rants in their neigh­bour­hood,” said Sri­har­sha Ma­jety, founder and chief ex­ec­u­tive of­fi­cer (CEO). “With Swiggy Ac­cess, we are di­ver­si­fy­ing lo­cal pal­ettes, bridg­ing ge­o­graph­i­cal gaps in sup­ply and solv­ing va­ri­ety, qual­ity and con­ve­nience is­sues.”

Swiggy will not charge restau­rants for us­ing the space, but will charge them higher com­mis­sions for or­ders ser­viced through their re­mote kitchens. While this will en­cour­age restau­rant part­ners to sign up for the ser­vice, it will also in­cen­tivise Swiggy to drive more or­ders through the kitchens.

For now, Swiggy is pi­lot­ing Ac­cess with tried and tested brands such as Leon Grill, a restau­rant chain that sees nearly 50 per cent of its busi­ness through Swiggy. The 3,200-sq ft space will cater to de­mand from cus­tomers in a ra­dius of four-five km. As more kitchens come on­line, that should re­duce to two-three km.

“We plan to bring 40 restau­rant part­ners on­board Swiggy Ac­cess in the next six months, which trans­lates to five kitchens. We will ini­tially go slow, learn ev­ery­thing that needs to be learnt be­fore open­ing hun­dreds of such kitchens across the coun­try. That is our vi­sion,” Ma­jety said. Apart from pro­vid­ing restau­rants space to setup kitchens, Swiggy will also lever­age data it gath­ers from con­sumers to see how these restau­rants can max­imise their or­ders.

The Bowl Com­pany and House of Dab­bas, two restau­rant brands owned by Swiggy, will get a boost through Swiggy Ac­cess. The brands will be al­lot­ted space at the re­mote kitchens, help­ing them widen reach in Ben­galuru. Swiggy plans to open the sec­ond such kitchen in Bel­lan­dur (Ben­galuru), a place where some of the largest global in­for­ma­tion tech­nol­ogy and soft­ware com­pa­nies are lo­cated.

More, the com­pany says Swiggy Ac­cess can be a step­ping stone for restau­rants to test the waters in new lo­cal­i­ties be­fore in­vest­ing to open own out­lets there.

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