The Nosh House: How It Successfully Cracked The Competitive Cloud Kitchen Market?

The food service industry has a long history of unpredictability, and the emergence of Cloud kitchens has been a mixed blessing. While some have struggled to crack the code for success, regional players like The Nosh House have thrived in this competitive market. Founded by Sharad Agarwal, a seasoned professional with 15 years of experience, The Nosh House started as a workplace café in 2017 and has since evolved into a highly successful cloud kitchen. Operating out of a central kitchen on Sarjapur Road, Bangalore, The Nosh House quickly gained popularity for its online food services, becoming a customer favourite.

Sharad, the founder of the Nosh House used an efficient cloud kitchen setup to spread his love for culinary art to Bengaluru’s population.

The Nosh House’s primary focus has always been the food. Freshness, quality ingredients, a classy menu, and innovation are the pillars of their success. They have maintained their quality impeccably, by using fresh locally sourced ingredients, maintaining the authenticity of the recipes, and avoiding frozen products or products with artificial preservatives. Their commitment to excellence ensures that every dish they serve maintains the highest quality standards. Another key differentiator that sets the brand apart from its competitors is presentation and service.

Sharad says, “Being a cloud kitchen setup, I knew we would not have the opportunity to go heavy on showcasing décor or ambiance to our customers, which is the second important thing that attracts the customers in a food business. So we successfully replaced it with our packaging, which reflects what we stand for.” Each box is like a little treasure chest complemented with a detailed description of the delicious delicacies inside. This attention to detail has set The Nosh House apart in the culinary industry.

The Nosh House has gained the credibility of a popular new-age kitchen amongst the corporates too, having offered its food services to top organizations like Puma, Flipkart, Myntra, Accenture, Scapia, Zinier, Morgan Stanley, Wells Fargo and many more through the years. Several awards also acclaim the brand throughout its journey.

The Nosh House’s secret recipe for maintaining an honest client base amidst today’s aggressively competitive market.

While Swiggy and Zomato are key food aggregators offering a common platform to all small and big food businesses and restaurants, it has also taken the competition a notch above. The hurdles that come in the way of any cloud kitchen’s success are deciphering low expenses, a high-optimization model, and the diversification of cuisines. Overcoming all these challenges enabled The Nosh House to decode the secret of maintaining their customer recall value and consistent food quality and pricing over time.

The brand ensures keeping its standard rates fair and consistent across all platforms, encouraging customers to prioritize taste and quality over constantly discounted prices at other eateries. While the occasional promotions can be festive or seasonal, designed to enhance the overall dining experience, The Nosh House only provides modest platform discounts to ensure steady sales and sustain profitability in a fiercely competitive market, especially with popular food chains vying for attention on the same platform. Their repeat customers and recall value can be evaluated by the fact that 80% of their orders are by repeat customers every month and by the average rating on Swiggy of 4.5 (32K+ ratings) and on Zomato of 4.3 (18.9K+ ratings).

Simultaneously, The Nosh House has always believed in offering the finest to its customers while experimenting with traditional dishes and innovating exquisite global and fusion cuisine. The brand pays special attention to the produce and ingredients used to prepare each dish. With their in-house bakery and zero outsourcing policy, they make every bite taste fresh and divine. This attribute segregates them from their competitors.

How does The Nosh House leverage diversified cuisine kitchen setup to its advantage?

It’s common knowledge that Zomato and Swiggy, two major players in the food industry, have intensified competition and raised customer expectations. As a result, it’s challenging for a single cuisine brand to thrive in today’s market. The digital transformation of the food industry has significantly influenced customer preferences. They now crave diversity and convenience in their food choices. Given the absence of personal interaction in a cloud kitchen setup, embracing a multi-cuisine business model that maximizes sales and fosters business growth is imperative.

The Nosh House understood this at a very initial stage. It inculcated fusion food and global cuisine in the setup while taking impeccable experimentation and innovation as the brand’s key assets. Their cuisine ranges from high-end gourmet desserts like parfaits, cheesecakes, pies, etc., to guilt-free breakfast spread and festive assortments, tea cakes, salads, and wraps, to global and authentic Indian dishes like delectable pasta, quesadillas, calzones, quiches, rice bowls, and more.

Why and how did The Nosh House overcome the sales plateau faced by many similar cloud kitchens?

All these factors along with Sharad’s undivided love and passion for food and his experience in the industry helped him overcome the various challenges and sales plateau conclusively. The Nosh House has lived up to its personal values and client’s expectations since its inception and aims to sustain the same repo in the long run. The brand simultaneously aims to utilize high-quality local produce and ingredients to enhance the taste and authenticity of its food and maintain its zero outsourcing policy intact throughout its journey.

The Nosh House represents the food’s true essence and beauty with its assorted menu. They believe in spreading the joy and mutual love of food with customers who appreciate a good meal and remarkable service.