Zomato Launches ‘Rival’ Cloud Kitchen to Tap India’s Booming Health Food Market

Indian food delivery giant Zomato has begun testing a new cloud kitchen concept named Rival, targeting the rapidly growing health and nutrition-focused food segment. The pilot project is currently operating in select locations in Gurugram, where customers can place orders through the Zomato app.

The initiative is being launched in collaboration with Massive Restaurants, the hospitality company known for popular dining brands such as Farzi Cafe and Louis Burger.

Sources familiar with the development told CNBC-TV18 that the partnership structure ensures Zomato does not directly operate the food brand itself. Instead, operations are managed by the partner restaurant group.

This structure aligns with earlier assurances made by Deepinder Goyal, who had previously stated that Zomato would avoid launching private labels that compete with restaurant partners on its platform.

As a result, Rival functions more as a collaborative venture rather than a direct Zomato-owned restaurant brand.

A Strategic Bet on the Health and Fitness Food Market

Zomato's Menu Focus: Protein and Nutrition

Zomato's Health-Centric Offerings

The Rival menu has been designed primarily for fitness-conscious consumers. It focuses on nutritionally balanced foods and beverages that support active lifestyles.

Key offerings include:

• Protein shakes made from plant-based, whey, and yeast-based blends

• Nutritional milkshakes

• Hot and iced coffee beverages

• Fresh salads and light meals

By offering high-protein and nutritionally focused options, Rival aims to appeal to the growing base of urban consumers seeking healthier food alternatives while ordering online.

Zomato Eyes a Slice of the Health-Food Market

Structured Approach to Wellness Dining

While Zomato already lists several restaurants offering healthy food options, Rival represents a more focused and organised effort to capture the expanding wellness-driven food segment.

The company appears to be testing whether a dedicated health-oriented cloud kitchen brand can attract consistent demand among fitness enthusiasts and working professionals.

Competition From Swiggy

Zomato’s primary rival, Swiggy, has also moved aggressively into the healthy-food category through its curated offering EatRight.

Unlike Rival, which functions as a specialised cloud kitchen, EatRight aggregates healthy dishes from existing restaurant partners already listed on Swiggy’s platform.

The category includes:

• High-protein meals

• Low-calorie options

• Sugar-free dishes

Swiggy has highlighted the growing popularity of the segment in its shareholder communication. According to the company, EatRight orders now represent roughly one in nine orders placed on the platform.

Rapid Growth in India’s Health and Nutrition Market

A Multi-Billion-Dollar Opportunity

The launch of Rival comes at a time when India’s health and wellness food industry is witnessing rapid expansion.

Industry estimates suggest that:

• India’s health and wellness food market is currently valued at $35–$39 billion.

• The sector is expected to grow to between $78 billion and $140 billion by 2032–2033, depending on consumer adoption trends.

Protein Nutrition Market Growth

Within the broader wellness ecosystem, the protein supplements market alone is experiencing strong growth:

• Valued at about $773 million in 2024

• Expected to reach nearly $2 billion by 2033

• Growing at a CAGR of around 11%

Meanwhile, the broader protein nutrition market, including protein-rich foods and beverages, is estimated at around $2.5 billion and is projected to expand at roughly 14% annually through 2028.

Protein Deficiency Driving Demand

One of the key drivers behind this trend is rising awareness about nutrition and fitness among urban consumers.

Research studies suggest that nearly 73% of Indians are protein-deficient, highlighting a significant gap between dietary requirements and actual protein intake.

This nutritional shortfall has encouraged many consumers to incorporate protein-based drinks, supplements, and high-protein meals into their daily diets.

Will the LPG Crisis Dent the Food Delivery Recovery?

Restaurant Industry Faces Operational Challenges

Zomato’s experiment with a specialised cloud kitchen is taking place during a challenging period for the broader restaurant industry.

Many restaurants across India are facing operational disruptions due to shortages of commercial LPG cylinders, which are essential for large-scale cooking.

The supply crunch is linked to geopolitical tensions in West Asia, which have disrupted energy shipments passing through the Strait of Hormuz — a critical transit corridor for LPG imports.

India imports about 62% of its LPG requirements, and 85–90% of those shipments typically pass through Gulf nations, making the country particularly vulnerable to supply disruptions.

Restaurants Cutting Back Operations

The restaurant industry body National Restaurant Association of India (NRAI) has warned that the crisis could force thousands of restaurants to shut down if supplies do not improve soon.

In major urban centres such as:

• Bengaluru

• Pune

• Delhi-NCR

many restaurants have already reduced menu options or temporarily suspended operations.

Industry executives told The Economic Times that 1,000–1,500 restaurants in cities like Mumbai and Chennai have already shut operations, while others are limiting menus to conserve fuel.

Impact on Food Delivery Platforms

Delivery Growth at Risk

The LPG shortage could also affect food delivery companies, including Zomato and Swiggy, as fewer restaurants are able to fulfil online orders.

This disruption comes just as the sector had begun recovering after a slowdown earlier in the year.

Swiggy reported that its gross order value (GOV) increased 20.5% year-on-year to ₹8,959 crore in Q3 FY26, marking the fastest growth in nearly three years.

Similarly, Zomato posted strong growth during the same period:

• Net order value (NOV): ₹9,846 crore

• Growth: 16.6% year-on-year

• GOV growth: 21.3%, accelerating from 13.8% growth in the previous quarter

Zomato Parent Eternal Reports Strong Profit Growth

Zomato’s  Financial Performance

Zomato’s parent company Eternal also reported solid financial performance during the December quarter.

Key highlights include:

• Consolidated net profit: ₹102 crore

• Growth: 73% year-on-year

• Operating revenue: ₹16,315 crore

Much of this growth was driven by the rapid expansion of Blinkit, Zomato’s quick-commerce arm, which has been transitioning to an inventory-led business model.

Conclusion

Zomato’s pilot launch of the Rival cloud kitchen marks an important step in its strategy to tap into India’s rapidly expanding health and nutrition-focused food market. By partnering with Massive Restaurants instead of running the brand directly, the company appears to be maintaining its commitment to avoiding competition with restaurant partners while still experimenting with new formats.

The concept also reflects broader consumer trends in India, where increasing awareness about fitness, diet, and protein intake is reshaping food consumption patterns.

However, the initiative comes at a challenging time for the restaurant industry. Supply disruptions in commercial LPG have forced many restaurants to cut back operations, which could temporarily impact food delivery volumes.

If Rival gains traction during its pilot phase, Zomato may expand the concept to other major cities. Such specialised cloud kitchen formats could become an important growth driver for food delivery platforms as they explore niche categories like health food, premium meals, and functional nutrition.