Kitchen in the district

Company

Tourism, Hospitality and Restaurant Business
Since 2017
Russia
Central Federal District of the Russian Federation
Moscow
4th Samotechny Lane, 9

Owners:
O2O Holding - 84,7%

Content

History
Notes

Owners

+ Government of the Russian Federation

History

2024: Work stoppage due to botulism outbreak

The ready-made food delivery service "Kitchen in the area" completely suspended its activities due to the outbreak of botulism, which led to the mass hospitalization of Muscovites. This decision was made in mid-June 2024 against the background of food inspections at the production of the company, which cooperates with state bodies to clarify the circumstances of the incident.

According to Kommersant, the outbreak of botulism is associated with a bean lobio salad produced by one of the company's suppliers. At the moment, the name of the supplier has not been disclosed. As a result of the incident, ten people were injured, according to the official report of the capital's head office of the TFR. However, according to the Telegram channel "112," the number of hospitalized reached 49 people. The products were temporarily withdrawn from circulation until the completion of the sanitary and epidemiological investigation.

source = Kitchen in the neighborhood

The food delivery service "Kitchen in the District" announced the temporary termination of the application in connection with the outbreak of botulism in Moscow.

The general director of Infoline-Analytics, Mikhail Burmistrov, noted that the suspension of the service could result in the loss of up to 15 million rubles of revenue per day. In addition, reputational losses can lead to the refusal of partners from cooperation with the "kitchen in the area." According to him, the service occupies about 1.5% of the ready-made food delivery market in Moscow, but remains unprofitable and depends on the investments of the owners.

According to SPARK-Interfax, by mid-June 2024, 84.7% of the share in the main legal entity of Kitchen in the District - Lokalkitchen LLC - is controlled by O2O Holding LLC.

Problems also affected the manufacturer of lettuce with tuna, beans and apple - LLC "Gastroport," operating under the Take Eat Easy brand. The company's products were also withdrawn from sale until the circumstances were clarified. Gastroport cooperates with such large retailers as ABC of Taste, Magnit, Miratorg, Perekrestok and Vkusville. The latter temporarily blocked the supply of Gastroport products until the investigation was completed, although there were no complaints from buyers.^[1]

2020

Share in the market for delivery of ready-made food for September - 1.4% (+ 1 pp)

Market Shares of Leading Players in the Ready-Made Food Delivery Market, 2019 - 2020

Transfer of 84.7% of shares in O2O

On September 9, 2020, Sberbank informed TAdviser that O2O, a joint venture between Sberbank and Mail.ru Group, is investing in the Kitchen in the Area express delivery service. "O2O" will receive 84.7% of the project, the remaining shares will be retained by the founders of the service. The deal is scheduled to close before the end of the fourth quarter of 2020. O2O invests part of the funds previously raised from its shareholders for business development.

Sberbank and Mail.ru Group bought the ready-made food express delivery service "Kitchen in the area." Photo source: vk.com

"Kitchen in the area" has already begun to integrate with "O2O" services: for example, you can order lunch from "Kitchen" through the Delivery Club - it will be delivered free of charge in 15-30 minutes. The service will be built into the ecosystems of Sberbank and Mail.ru Group: users will not need to spend time registering in the Kitchen in the Area application - in the future it will be possible to log in to it through Sberbank ID or VK Connect. In addition, the Kitchens in the District mini-application for September 9, 2020 is available for VKontakte users.

At the beginning of September 2020, the service has 34 kitchens in Moscow, which prepare food for residents of their area. More than 20,000 orders are made per day by users of the service. Couriers on bicycles deliver food within a radius of a couple of kilometers. Thanks to this, breakfasts, lunches and dinners are prepared and brought in a maximum of half an hour.

Kitchen in the district "uses an IT system of its own design to manage the processes in the company, accurately predict demand, and plan the supply of products. As of September 9, 2020, there are more than 3,500 recipes in the database, and about 100 dishes in the weekly rotation: the menu for the week for each kitchen is based on the season, the upcoming holidays and what kind of food is more loved in the area. After the integration of Kitchen in the District into the ecosystems of Sberbank and the Mail.ru Group, companies will be able to exchange technologies to improve all O2O products.

Lev Khasis, First Deputy Chairman of the Management Board of Sberbank:

The pandemic, which radically affected the economy of the whole world, primarily affected the effectiveness of the usual business models. As the experience of recent months shows, those companies that were guided by the changed habits and tastes of customers survived the crisis best of all - and tried to quickly satisfy their needs, formed under the influence of the realities that we faced. At the same time, even a gradual return to the usual life did not eradicate the habits of customers. We believe that the ʺKukhnya rayoneʺ demonstrates just such a symbiosis of the flexibility of the business model and the desire to anticipate the wishes of customers.

Boris Dobrodeev, CEO of Mail.ru Group:

We are confident that the format of kitchen factories will take root as quickly and firmly as the delivery of food from restaurants. ʺKukhnya rayoneʺ has built a system that allows people to bring delicious dinners faster than they would be prepared at home. Several success factors came together here at once - this is a service that can be used every day, and he is very accurate in taking into account desires and habits. We are pleased that the project is becoming part of our platform - it is fully consistent with our idea of offering people the most convenient services for solving everyday problems.

In the second quarter of 2020, Kitchen in the Neighborhood prepared and delivered four times more orders than in the same period in 2019. In 2020, the service plans to cover almost all of Moscow and reach revenues of more than 3 billion rubles.

2019: Foodreactor launch

In February 2019, the Food Reactor was launched - a kitchen factory that allowed the service to scale.

2017: Foundation

"Kitchen in the Neighborhood" was founded in 2017.

Notes

↑ Infection interrupted delivery

Источник — «https://tadviser.com/index.php/Company:Kitchen_in_the_area_(Lokalkitchen)»

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