Feasibility study for a cloud kitchen

The client, a Nepal-based entity, wants to analyze the feasibility of setting up a cloud kitchen business and building traction with a delivery-only model.

‌Problem Statement
We were asked to put together a compelling investment proposal and the supporting financial plan that entailed:

  • ‌‌Establishing the market potential for viability of such a platform
  • ‌‌Conducting market Analysis, customer segmentation analysis
  • ‌‌Strategizing the go to market approach – prioritize market entry by potential and identify segmentation
  • ‌‌‌Building a detailed financial plan that details out critical business metrics in driving sustainable growth in the coming months and years. 

Action Taken

  • ‌‌‌‌‌Assessed country level attractiveness based on selected parameters
  • ‌Drove primary and secondary research to identify the customer profiles who would be the ideal users of such a platform
  • ‌Researched different types of cloud kitchen operating models in detail and critically analyzed each models’ pros & cons.
  • ‌Conducted Nepal wide deep dives to focus on laying out the potential customer segment size along with the set of channels to target to drive market adoption for each segment.
  • ‌‌Prepared a phase wise operational plan for the next 3-5 years
  • Built revenue and cost drivers to simulate CAC, marketing investments, customer churn, operations costs etc.
  • ‌‌Captured the valuation of the business via DCF and revenue multiple benchmarks.

Deliverable

  • ‌‌Feasibility study report covering the viability of the proposition, opportunity size, in depth market and customer segmentation analysis 
  • Developed a 5 year financial plan