Zomato-backed Mukunda Foods shuts Nucleus Kitchens in another blow to the cloud kitchen sector.
Zomato had hoped to ride Mukunda’s kitchen automation and kitchen-as-a-service businesses to solidify its presence in the kitchen real estate space, as per industry sources, and enable its now-shuttered 10-minute food-delivery service.
According to industry sources, Mukunda Foods, a food robotics startup, has decided to shut down its high-profile kitchen-as-a-service business due to profitability issues. The company informed its clients of Nucleus Kitchens, including ITC, Auntie Fung’s, and Biggies Burger, to vacate the premises and close their accounts by the end of the week. The final three kitchens are still operational; all in Bengaluru will be shut down by February 28, while about 25 employees will be laid off. Since the business was unveiled in October 2021, Nucleus has only been able to open a dozen kitchens, shutting some within a month or two. Zomato invested $5 million in Mukunda Foods in March 2021, aiming to strengthen its presence in the kitchen infrastructure space and the quick-commerce segment, with Nucleus’s kitchens catering to its 10-minute delivery service, Zomato Instant. However, the company recently shut down the service. Mukunda Foods’ decision to close Nucleus Kitchens is symbolic of the broader struggles of the domestic cloud kitchen industry.
The article is “Zomato-backed Mukunda Foods Shuts Nucleus Kitchens in another blow to cloud kitchen sector.“