In a notable shift from the hypergrowth mentality often seen in India's food technology sector, Ankit Nagori, founder of Curefoods, has announced a strategic cap on the company's annual expansion. Curefoods, a prominent player in the food and beverage industry, will limit its growth to a maximum of 20-25% per year, signaling a clear focus on profitability and operational stability over rapid scale.
A Measured Approach to Expansion
Nagori explained that a faster growth rate risks compromising the underlying systems and quality that are crucial for sustainable business. Approximately 15% of this targeted growth is expected to come from new store openings, translating to about 75 new locations annually. This controlled pace is designed to maintain consistent quality across its diverse portfolio of brands.
Curefoods operates an omnichannel model, managing over 300 cloud kitchens and approximately 200 offline stores. Its portfolio includes popular brands like Sharief Bhai, Cake Zone, Olio Pizza, EatFit, Nomad Pizza, Frozen Bottle, and Krispy Kreme, for which Curefoods holds exclusive pan-India franchising rights.
Path to Consolidated Profitability
While Nagori states that all individual brands within Curefoods' portfolio are EBITDA positive, the company's consolidated profitability has remained elusive due to central costs, including supply chains and corporate overheads. In FY25, Curefoods reported an operating revenue increase of 27% to Rs 746 crore, but losses remained flat at Rs 170 crore. The company aims to achieve overall profitability by the end of the current year.
To achieve this, Curefoods is implementing several key strategies:
- Centralized Production: A significant portion (70-75%) of food preparation occurs in large central kitchens across cities. Individual outlets then handle only the final steps, such as baking, frying, or assembly. This approach enhances consistency, reduces labor intensity, and minimizes wastage.
- Selective Offline Expansion: Not all brands are being pushed into brick-and-mortar formats. Only a few, such as Sharief Bhai Biryani, Frozen Bottle, and Krispy Kreme, are targeted for offline scaling, with a goal of an 18-month payback period for these company-owned stores. Other brands continue to grow primarily through capital-efficient cloud kitchens.
- Category Focus: While health-focused brand EatFit has seen steady growth, Nagori identifies indulgence-led categories like pizza, biryani, and desserts as offering larger market opportunities. The aggressive expansion plans for Krispy Kreme reflect this strategic emphasis.
- Sharper Pricing: Introducing entry-level products at competitive price points, like Rs 99, aims to drive higher volumes and improve store economics.
Avoiding Quick Commerce and Diversifying Delivery
Curefoods is also making deliberate choices about what not to pursue. Nagori expresses caution regarding quick commerce-led formats, which demand high hyperlocal density and substantial upfront investment, a stance that contrasts with some competitors, such as Rebel Foods, which recently halted its QuickES delivery vertical.
Furthermore, Curefoods is actively working to reduce its dependence on third-party aggregators like Swiggy and Zomato. Currently, 72% of demand comes from aggregators, with 28% from offline channels. The company seeks a more balanced mix by leveraging its own offline channels and exploring emerging alternatives to diversify its demand sources.