Cloud Kitchen can supply products to multiple brands: FSSAI
- ByStartupStory | September 2, 2022
Food Safety and Standards Authority of India (FSSAI) claims that a cloud kitchen is capable of supplying its goods to numerous brands. After a Substack user disclosed that someone was reportedly running hundreds of phoney brands on Swiggy and Zomato, the FSSAI made their comments.
The cloud kitchen can supply its products to “innumerable brands,” according to the food safety authority, as long as it complies with the standards.
Last week, a Substack user Pea Bee, or Prashant Baid published a post which mentioned that a single person was running around 200 brands each on Swiggy and Zomato from two locations in Bengaluru.
The owner of these cloud kitchens, Ramjani Khan,registered the restaurants with the same FSSAI number but from slightly different addresses.
Many brands being run had names similar to those of popular brands,Baid further added, “This may dupe the customer by appearing on top of the search results if the original restaurant is unavailable for delivery at that location.” Baid also added that many restaurants were named exactly the same, but with a change in the letter cases.
“Creating hundreds of fake restaurant brands on these platforms shouldn’t be so easy,” Baid also added that most of the said restaurants had ratings of less than 4 across both Zomato and Swiggy.
A platform is not required to obtain an FSSAI licence if it solely lists food business operators (FBOs) and does not conduct any of the activities listed in accordance to Section 3(n) of the Food Safety & Standards Act, 2006 (relating to food business).
Only FBOs with active FSSAI registrations or licences may be listed, nevertheless. As a result, only FBOs having an FSSAI licence are permitted to be listed on Swiggy and Zomato.
According to Kabir Suri, president of the National Restaurant Association of India (NRAI), the competition between restaurants is based on customer satisfaction and not how many brands a kitchen can handle.
It is worth noting, presently the FSSAI licence is location-based and not entity-specific. As a result, once a licence has been secured, it can be used to register any food enterprises connected to a single site.
India’s cloud kitchen market is anticipated to expand between 15.5% and 17.5% CAGR during 2024–2028 and may reach a market value of $2.5 Bn by FY28, according to a TechSci Research analysis. Several of the top companies in the market for cloud kitchens include, among others, Rebel Foods, Curefoods, and Biryani By Kilo as some of the prominent companies.
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