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Food services entrepreneur sets up Ghost Kitchens for startups

The hospitality chain will recruit a chief executive for the same while founder Karan Tanna will remain a shareholder, a statement by the company said.

ET Bureau|
Last Updated: Oct 25, 2019, 12.10 PM IST
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Yellow Tie Hospitality
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Foods services business entrepreneur Karan Tanna has launched Ghost Kitchens, an investment and incubation company for start-ups in the cloud kitchen segment. The initial tranche of investment will be US $3 million for 15 brands in the first year. “The start-up will invest only in delivery business companies which have scalability potential and plans an investment portfolio of 50 brands in two years,” a statement issued by the company said.

The statement said Ghost Kitchens will provide growth capital to brands that are already performing well in home delivery formats. Since the margins in home delivery are thin, Ghost Kitchens will also provide a common infrastructure, backend, marketing and administration centralised support to help brands optimise these costs,” the statement said.

The statement added Tanna will be leading Ghost Kitchens in the role of founder and continue to be a shareholder in Yellow Tie Hospitality, the company he founded.

“In a scenario where cloud kitchens are disrupting the restaurant industry, an incubator that organises their growth can be huge influencer and enabler. Ghost Kitchens will have in-house capabilities of brand building, menu engineering, warehousing and supply chain,” Tanna said.

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