Hangry Starts Brand Aggregator Strategy, Acquires Local Culinary Brands
Hangry started a brand aggregator-style strategy to complement the culinary offerings in its outlets. In its debut, Hangry “House of Winning Brands” fully acquired Indian food brand developer Accha. Later, the Accha product will be included as a menu variant in the Hangry service.
It all started when Hangry saw the rapid progress in Accha’s growth. After several talks, Hangry and Accha found a common vision, mission, and philosophy in building a brand.
In the interview, Abraham said that in the future Hangry will acquire more culinary brands — however, they will not stop producing new food brands independently.
As is known, currently at each Hangry outlet there are several food brands that can be ordered, ranging from Moon Chicken, San Gyu, Kopi Dari Pada, and Ayam Koplo — all four of which are culinary brands that they develop ‘in-house’.
The strategy to become a brand aggregator is also believed to be able to bring Hangry closer to his goal of serving the global market, so it is possible that in the future there will also be food brands outside Indonesia that will be acquired and included in the ecosystem.
On the same occasion Abraham also said that this year he would intensify further fundraising, considering that the demand for a multi-brand culinary business like this is rapidly increasing in the market.
According to the latest Momentum Works report, throughout 2021 food delivery services in Southeast Asia grew 24.3%, generating GMV reaching $4.6 billion.
This market growth is also supported by increasingly diverse food delivery service providers. In Indonesia, for national scale players apart from GoFood and GrabFood, there is now Shopee Food to Traveloka Eats Delivery.
Hangry Business Growth
Since starting its business at the end of 2019, Hangry has operated 74 outlets spread across Greater Jakarta, Bandung, Surabaya and Semarang.
Last year they also started to expand into dine-in restaurants, after previously only serving orders through food delivery applications. As of Q4 2021, they also reported that they had managed to sell 10 million portions of food and beverages through their outlets.
This fast expansion was carried out by Hangry after he managed to book a series A funding of 188 billion Rupiah in May 2021. With the initial funding received, more or less the company managed to book capital funds from investors of almost 250 billion Rupiah.
Alpha JWC Ventures, Sequoia Capital India, SALT Ventures are the names that also support the fund. Abraham also believes that Hangry’s success in surviving and overcoming the crisis caused by the pandemic is proof of the business model they are running.
The fundamentals of a multi-brand business previously known as cloud kitchen – which allows a centralized kitchen to manage several types of food menu brands at once. The existence of a delivery messaging platform also makes this business able to quickly expand.
In contrast to traditional restaurant businesses which require large operating costs when looking to increase their presence in new cities, services like Hangry tend to be more efficient to expand.
In fact, the basic challenge is how they are able to present menus that are relevant to the market – in addition to the variety of menus offered.
Cloud Kitchen Derivative Business
By carrying out the basic concept of a cloud kitchen, Lokalkitchen has also become another local startup that focuses on developing multi-brand culinary. From the start, their strategy was to capture F&B brands that were considered potential.
They act as accelerator centers, providing funding, marketing, technology, and logistical support to advance related culinary brands.
The approach to becoming a brand aggregator has actually started to be taken by other players, including Dailybox which recently acquired Breadlife; there is also a Foodstory. Another thing that is also unique to the culinary business that utilizes the cloud kitchen concept is the application of technology.
Its main goal is to provide a unique user experience to its customers. There are various forms, ranging from the application of the O2O concept (order in the application, pick up at the outlet), membership system, loyalty, to payment.