Asian Journal of Management Cases, Ahead of Print.
This teaching case looks at the food-tech industry in India, the cloud kitchen space, in general, and a key player in this space FreshMenu, in particular. The FreshMenu case views two competing objectives: the scalability versus profitability of an internet-run entrepreneurial firm. The firm operates in an entrepreneurial ecosystem with different dynamics than traditional businesses. The case offers a historical perspective of the food-tech industry in India, the development of the cloud kitchen space, and the latter’s pros and cons. The case focuses on the evolution of FreshMenu and its founder’s dilemma. Despite being one of the first movers in the cloud kitchen space, FreshMenu has come across as the has-been for scalability and funding. Its founder ended up pitted against her close competitors—Rebel Foods Private Limited, Innerchef and Poncho Hospitality Limited. In an entrepreneurial world, where scalability is valued more than profitability, are the founder’s fears real or mythical? As the famous fable ‘The Hare and the Tortoise’ unfolded in the mind of FreshMenu’s founder, the picture of FreshMenu’s position became clearer.