NKP Empire, which manages and runs Bengaluru-based Empire restaurant plans to add 7-8 cloud kitchens in the city by FY25 as part of its expansion strategy to be present every 2 km as it strengthens its foothold. Currently, it operates 15 cloud kitchens in Bengaluru.
Around 60 percent of Empire’s business comes from offline channels, while 40 percent is through online platforms. Shakir Haq, CEO, NKP Empire Ventures, foresees this figure expanding into a 50-50 split in the future. “Depending on feasibility, we could potentially add a new cloud kitchen every month,” he noted.
“Cloud kitchens are much faster to set up and act as extensions of our larger outlets. They also provide a cost-effective solution, requiring less investment than full-scale outlets. With lower overhead costs and smaller space needs, we can expand faster while maintaining good profit margins. This also helps us reach high-demand areas more easily, improving delivery times and customer experience,” said the third-generation leader of Empire.
Additionally, cloud kitchen allows restaurants to handle volumes of orders within a 2-kilometer radius of congested areas to help manage the load and maintain service quality of the larger outlets.
This addition to cloud kitchen aligns with Empire’s expansion plan for Bengaluru, targeting to penetrate the Karnataka market, particularly focusing on tier 2 and tier 3 cities and towns adding 16 stores within the next two to three years. The restaurant owns and operates 45 stores in Karnataka, with 33 stores in Bengaluru alone.
Shakir highlights exponential growth in tier-2 and tier-3 cities, noting their increasing spending power. “However, there are very few options available for people to spend, particularly in sectors like retail and F&B,” he said.
Notably, there is a visible growth possibility beyond Karnataka, he stated. The Empire is planning to expand into other southern states over the next three to five years, starting with Telangana and Tamil Nadu.
“In Telangana, we are planning to open one store within the next two years in Hyderabad, and Chennai. Tamil Nadu, in particular, has a diverse culture, with a strong tradition of dining out, which aligns well with our business mode,” he told businessline.