In conversation with BW Retail World, Ghost Kitchens India Founder and CEO Karan Tanna speaks about the slowdown in cloud kitchens, Gen Z dining trends, AI in food businesses and why celebrity-backed brands could define the next phase of India’s restaurant industry
India’s food service industry is undergoing a sharp transformation as consumer preferences shift from convenience-driven ordering to experience-led dining. While the cloud kitchen boom that accelerated during and after the pandemic is beginning to stabilise, new opportunities are emerging around Gen Z consumption, café culture, celebrity-backed food brands and AI-led operational efficiency.
In an interaction with BW Retail World, Karan Tanna shared his views on the evolving restaurant ecosystem, the rise of mass-premium pizza brands, the growing role of celebrities in hospitality and Ghost Kitchens India’s long-term expansion strategy across India and global markets.
The cloud kitchen sector saw explosive growth during and after the pandemic. How do you see the segment evolving now?
The cloud kitchen sector has started reaching a saturation point. During Covid and even for a few years after that, platforms like Swiggy and Zomato were primarily focused on market share and customer acquisition. Now their focus has shifted towards profitability, which has changed the dynamics of the industry.
Because of that, penetration has stabilised and I do not see cloud kitchens scaling at the pace they did three or four years ago. Going forward, sustainability and operational efficiency will matter far more than simply launching new kitchens.
What key consumer trends are shaping India’s food delivery and dining market today?
A major shift is being driven by Gen Z consumers, who are now earning, spending and influencing dining culture in a big way. Their preferences are very different from earlier generations.
They are less influenced by legacy international brands and more attracted to concepts that feel authentic, soulful and relatable. You can clearly see this in the rise of café culture, coffee and matcha consumption.
Social media and OTT platforms have also significantly influenced food preferences. Korean cuisine, for instance, has grown rapidly in India because of digital exposure. Consumers today are looking for experiences, interaction and community-driven dining rather than just eating out.
As a result, Indian quick service restaurant brands and dining concepts that offer differentiated experiences are likely to perform strongly over the next few years.
How is Ghost Kitchens India leveraging technology and AI to improve efficiency and profitability?
Technology and AI are deeply integrated into our operations. We use data analytics to track operational metrics across aggregator platforms and understand how those metrics influence platform algorithms.
Improving delivery times, ratings and operational efficiency helps improve our visibility and rankings on food delivery platforms. We also use data to study what products are selling in specific localities, at what price points and how competitors are performing.
These insights help us with menu engineering, pricing strategies and operational optimisation.
How impactful do you think AI will be for smaller food entrepreneurs and café operators?
AI will definitely help level the playing field to a certain extent. Small entrepreneurs can use AI for brand storytelling, menu descriptions, graphics and even basic menu engineering.
The baseline quality of branding and communication will improve for everyone because these tools are now easily accessible.
However, the businesses that truly succeed will still require original thinking, creativity and differentiated execution. AI can support the process, but it cannot replace originality or a strong brand identity. That is why I do not believe AI alone will completely transform the restaurant business.
What are the biggest challenges in scaling multi-brand cafés and kitchen operations today?
Competition is the biggest challenge. The market has become extremely competitive and brands need to constantly evolve to remain relevant.
You need a differentiated product, strong storytelling and consistent customer experiences. Consumers should immediately understand what makes your brand different and then validate that belief when they experience the food.
That is one of the reasons why we are investing heavily in celebrity-led brands. The right celebrity association helps build initial consumer curiosity and emotional connection.
What was the vision behind launching Bad Boy Pizza?
We have a very strong thesis around celebrity-led food brands in India. We have seen celebrity-backed brands work successfully across fashion, lifestyle and beauty, and we believe food represents an even larger opportunity.
With Bad Boy Pizza, we created a playbook around how celebrities should contribute beyond simple endorsements. The celebrity should actively participate in the brand’s identity, strategy and positioning.
The first phase has worked very well for us because it generated strong visibility and consumer interest. Once customers visit, the food and service take over and help build long-term loyalty and word-of-mouth growth.
How do you plan to scale the brand further?
We plan to open 10 more stores this year across Mumbai, Surat and Ahmedabad, focusing mainly on West India. In 2027, we aim to launch another 12 to 15 stores.
Our strategy is centred around dining-first formats because we strongly believe experiential dining will dominate the next phase of growth in the food service industry.
Are tier-2 cities part of your expansion strategy?
Absolutely. We are very bullish on tier-2 markets. Surat and Ahmedabad are already important test markets for us and will help us understand consumer behaviour outside metros.
Over the next one-and-a-half to two years, we expect to expand more aggressively into tier-2 cities based on learnings from these markets.
How significant is Bad Boy Pizza’s contribution to Ghost Kitchens India’s business currently?
At the moment, Bad Boy Pizza contributes less than 10 per cent to Ghost Kitchens India’s overall revenue because the business is still relatively young.
However, our celebrity-brand vertical is expected to contribute around 40 to 50 per cent of overall revenues over the next three to four years as we continue launching new concepts and scaling existing brands.
What are your market share ambitions in India’s fast-growing pizza segment?
We operate in the mass-premium pizza segment. Rather than looking at the national market broadly, our focus is hyperlocal dominance.
In every micro-market where we operate, we aim to capture around 15 to 20 per cent market share within the mass-premium pizza category.
What is your long-term vision for Ghost Kitchens India?
Our long-term vision is to build Indian brands rooted in the country’s subcultures and eventually take them global.
From the second half of 2027, we plan to begin international expansion with markets like the UK and the US as priority geographies. We believe the Indian diaspora in these regions strongly connects with food that feels nostalgic, relatable and culturally rooted.
Over the next eight to ten years, we want to build four to five Indian-origin brands that achieve meaningful global scale.
You mentioned more celebrity-backed brands are in the pipeline. Why do you believe celebrity-led food ventures work so well in India?
Food is deeply emotional and personal, and celebrities already have a strong emotional connection with consumers. When a celebrity genuinely participates in building a food brand, that fan following can translate into a loyal consumer base.
But the key is authenticity. We do not treat celebrities as endorsers — we involve them as co-founders. They participate in product development, branding, marketing and strategic discussions.
For example, the celebrity associated with Bad Boy Pizza genuinely enjoys the product and actively engages with the brand. That authenticity builds trust among consumers and creates stronger long-term brand equity.
