Scaling a Cloud Kitchen Brand from 2 to 35 Outlets in 18 Months
2026-04-12
How an asset-light cloud kitchen brand used the franchise model to expand across 6 Indian cities without owning a single storefront.
Spice Route Kitchens started as a 2-outlet operation in Bengaluru. With unit economics validated at ₹1.2L monthly profit per kitchen, the founders chose franchising over equity dilution. We structured an asset-light FOFO model: ₹6L franchise fee, 8% royalty, and a 90-day setup playbook. Centralised tech (orders, inventory, training) kept brand consistency tight while franchisees handled hyperlocal ops. Result: 35 active outlets across 6 cities in 18 months, a 92% franchisee retention rate, and a network revenue run-rate of ₹38 Cr.
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