UAE cloud kitchen startup kaykroo expands to Saudi with 15 branches

By Arya M Nair, Intern Reporter
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Kaykroo, the UAE’s largest cloud kitchen platform for virtual restaurants, has announced the opening of new offices in Saudi Arabia to support its GCC expansion efforts.

On a mission to deliver great food experiences, kaykroo has started serving customers in Riyadh with the launch of its first cloud kitchen in the Kingdom, which will be its 20th facility in the region.

According to reports, in the first quarter of 2021, the food delivery sector had a monthly average demand of $266.6 million. Cloud kitchen platforms, in particular, have shown strong growth potential in the Kingdom, with a market value of $215 million in 2020 and a projected market value of $515 million by 2029.

Kaykroo’s second innovation center has been integrated into its Riyadh office and will be used to develop and test new menu items for its local consumer base. The innovation center, and all regional kitchens, will be equipped with kaykroo’s proprietary technology, which is designed to boost efficiency, maximize resource use, and significantly reduce waste, resulting in more environmentally friendly activities.

Jihad El-Eit
Jihad El-Eit
CEO – kaykroo

 “We’ve spent the last year and a half growing kaykroo’s operations in the UAE, which now cover five different emirates. kaykroo is about listening to what people want and creating experiences that exceed their expectations. Given the importance of the Saudi market for us, building a dedicated local office, with a team that understands the community, was the only way to truly deliver on our promise.”

The platform started a ‘March Towards 500’ in January 2021 with a goal to provide 50 brands from its kitchens in 50 sites around the region over the next 50 months, earning a total of $500 million in sales. By 2024, kaykroo expects that it will have grown to five times its current size.

Mr. Fawaz Al Otaibi, co-founder and newly appointed CEO of kaykroo Saudi Arabia said that kaykroo in the Kingdom would provide the same brands as in the UAE, but with a Saudi twist.

The Saudi expansion will see 15 additional branches open across the country in the next 18 months. Within this period, kaykroo plans to deliver over 1 million meals and create over 500 new employment in the Kingdom through their national kitchens.

Related: Saudi food tech startup Siwar secures $7.5mn in Series A funding