In a world where food waste is a pressing issue and cravings for different cuisines are ever-changing, two friends from Kolkata, Suvobrata Ganguly and Soupal Das, founded Crave Raja Foods, a cloud kitchen brand that provides customers with four different brands, each serving a unique set of dishes. The company's aim is to reduce food wastage by making dishes with single ingredients, a move that has proven successful as they have managed to keep their wastage percentage at an impressively low 1-2%.
With their vision set on becoming India's largest cloud kitchen brand, the duo has managed to create a brand that stands out from the competition by changing their food menu at regular intervals. Their innovative approach has paid off, as evidenced by their 10,000 reviews and an average of 4-star ratings on Zomato.
On an episode of Shark Tank India, the founders presented their pitch to the sharks, asking for 65 lakhs rupees for a 3% equity stake in their company. Despite their impressive lifetime sales of 4.1 crore rupees and projected sales of 3.25 crore rupees for the current year, the sharks were not interested in the deal, and there were no offers or counteroffers made.
However, the lack of a deal did not deter the founders, who remain committed to their mission of providing customers with delicious meals while reducing food waste. With a lifetime sales figure of 4.1 crore rupees, last month's sales of 19.5 lakhs rupees, and projected sales for the current year of 3.25 crore rupees, Crave Raja Foods is undoubtedly a brand to watch out for.
In terms of unit economics, the company's cost of goods sold (COGS) accounts for 30% of sales, while the gross margin is 70%. Of the 30% COGS, 30% is for commission in marketplaces, 27% is for fixed costs, and 10% is for other expenses. The average price of a small pizza is 299 rupees, while a large pizza costs 809 rupees. The price of SOS is 199 rupees, the Burrito is 239 rupees, and the Fry Raja is 199 rupees.
While Crave Raja Foods did not secure a deal on Shark Tank India, the founders remain optimistic about the future of their brand. With a bootstrapped business model and a mission to reduce food waste while providing customers with delicious meals, Crave Raja Foods has positioned itself as a unique player in the cloud kitchen industry.
In conclusion, the founders of Crave Raja Foods have created a brand that addresses a pressing issue in the food industry while providing customers with a unique and delicious dining experience. With their impressive sales figures and low food waste percentage, the company has undoubtedly set itself apart from the competition. While the sharks on Shark Tank India may not have been interested in the deal, the founders remain committed to their mission and have undoubtedly laid the groundwork for a successful future.
Here are some learnings that can help businesses like Crave Raja Foods grow:
- Focus on customer experience: Crave Raja Foods' success can be attributed to their focus on customer experience. They change their menu regularly, which keeps their customers interested, and they have an impressive 4-star rating on Zomato. By prioritizing customer satisfaction, businesses can build a loyal customer base and attract new customers through word-of-mouth referrals.
- Keep track of your unit economics: Knowing your cost of goods sold and gross margin is critical to making informed business decisions. By understanding your unit economics, you can identify areas where you can improve efficiency and increase profitability.
- Embrace innovation: Crave Raja Foods' innovative approach to reducing food waste by making dishes with single ingredients is a prime example of how businesses can differentiate themselves in crowded markets. By embracing innovation, businesses can offer unique products and services that stand out from the competition.
- Stay committed to your mission: Despite not securing a deal on Shark Tank India, the founders of Crave Raja Foods remained committed to their mission of reducing food waste while providing delicious meals. Businesses that stay true to their core values and mission will earn the trust and loyalty of their customers.
- Leverage technology: Technology can help businesses streamline operations, improve efficiency, and reduce costs. Crave Raja Foods is a cloud kitchen brand that leverages technology to deliver meals to customers through marketplaces like Zomato and Swiggy. By embracing technology, businesses can improve their reach and accessibility to customers.