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Zomato Pilots “Rival” Cloud Kitchen to Target Health-Conscious Consumers

Mumbai, March 13 Zomato, one of India’s leading food delivery platforms, has launched a pilot cloud kitchen brand called “Rival,” aimed at meeting the rising demand for high-protein and health-focused meals.

The initiative is being rolled out in partnership with Massive Restaurants, the hospitality group behind popular chains like Farzi Cafe and Louis Burger. Unlike traditional private brand ventures, Zomato’s approach aligns with its earlier stance of not competing directly with restaurant partners, as operations are fully managed by the partner group rather than Zomato itself.

Currently, Rival is operational in select locations in Gurugram, with orders available through the Zomato app in nearby areas. Sources indicate the brand remains in the pilot stage, with potential expansion to other cities contingent on its performance.

Menu Focuses on Fitness and Nutrition

Rival’s menu is structured around the fitness and nutrition segment, featuring protein shakes—including plant-based, whey, and yeast-based blends—alongside milkshakes, hot and iced coffees, and a variety of salads. The move represents a more systematic effort by Zomato to cater to the growing population of health-conscious consumers, complementing existing healthy options on its platform.

Its main rival, Swiggy, has entered the segment through “EatRight,” a curated category aggregating partner restaurant dishes that are high-protein, low-calorie, or sugar-free across more than 50 cities. Swiggy has reported that EatRight now accounts for roughly one in nine orders, highlighting the traction of health-focused meals.

India’s Health and Nutrition Market on the Rise

India’s health and wellness food market is estimated at $35–$39 billion and is projected to expand to $78–$140 billion by 2032–33, depending on adoption trends. The protein supplements segment alone was valued at around $773 million in 2024, expected to reach nearly $2 billion by 2033, with a CAGR of about 11%. The broader protein nutrition market is currently estimated at $2.5 billion and is projected to grow at 14% annually through 2028. Rising fitness awareness and widespread protein deficiency—affecting nearly 73% of Indians—are driving demand.

LPG Supply Disruptions Pose Operational Challenges

Zomato’s pilot comes amid an LPG shortage affecting restaurants nationwide. Supply disruptions linked to geopolitical tensions in West Asia, particularly around the Strait of Hormuz, have strained India’s commercial gas availability. India imports roughly 62% of its LPG, with 85–90% routed through Gulf nations.

The National Restaurant Association of India (NRAI) has warned that thousands of restaurants could shut if commercial gas supplies are not restored. Cities such as Bengaluru, Pune, and Delhi-NCR have already seen temporary closures or reduced menus. Industry reports suggest that 1,000–1,500 restaurants in Mumbai and Chennai have suspended operations, with many others cutting menu options to conserve fuel.

The disruption threatens to affect food delivery volumes for platforms like Zomato and Swiggy, which had just begun regaining growth momentum in Q3 FY26. Swiggy reported a 20.5% year-on-year rise in gross order value to ₹8,959 crore, while Zomato’s net order value grew 16.6% to ₹9,846 crore, translating into a 21.3% increase in gross order value.

Zomato’s parent, Eternal, posted a 73% year-on-year jump in consolidated net profit to ₹102 crore for the December quarter, with operating revenue reaching ₹16,315 crore, largely driven by Blinkit’s transition to an inventory-led model. However, the ongoing LPG shortage may slow growth in the March quarter, even as initiatives like Rival aim to unlock demand in specialised food categories.
 

Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.

The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.

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Editorial Note

This news article was written and created by Karthik, and published on IST.
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