KLC Virtual Restaurants (KLC), a dynamic multi-brand virtual restaurant company, passionately caters to the diverse palates of the GCC region by delivering delicious cuisine from a wide array of culinary traditions. Recognising the growing demand for affordable yet high-quality food in the delivery market, KLC crafted virtual restaurants to bridge this gap and satisfy the evolving needs of online consumers. With over 50 virtual brands under its wing and a streamlined cloud kitchen model, KLC skillfully navigates the ever-changing appetites of its discerning customers.
Earlier this year, KLC Virtual Restaurants CEO Mubarak Jaffar and Managing Partner Mohammed AlBesharah spearheaded an extensive expansion strategy in the UAE. We connected with them to discover more about this ambitious plan.
KLC Virtual Restaurants is a pioneer in crafting and nurturing its in-house brands, from brand conception to delivering delectable dishes to valued customers. Mubarak and Mohammed share their journey of venturing into a relatively untapped opportunity several years ago, driven by a desire to address the online market’s unmet needs. As one of the region’s early adopters, they introduced virtual brands and seamlessly operated them within their cloud kitchens. As a business in the food delivery industry, they have continuously adapted their models to align with evolving consumer behaviours, tastes, and trends. While their core objective of delivering quality food remains unchanged, they have adapted their approach to the region’s growing online food delivery scene. With over 70 virtual brands spanning 15+ cuisines, customers now have many options. Shifting from smaller kitchens, KLC currently operates over 50 brands from larger cloud kitchens, enhancing operational efficiency and scalability.
KLC Virtual Restaurants operates with a vertically integrated approach, taking full control of the brand creation, development, execution, and operation processes. They exclusively focus on their own brands and do not engage in operating other brands or renting out kitchen space to external companies. With meticulous attention to detail, they oversee every aspect of the business, from brand creation and menu development to the seamless delivery of food to customers’ doorsteps. Ensuring customer satisfaction is their top priority, and they have an in-house customer care center that operates around-the-clock across Kuwait, UAE, and Qatar. Each function within the company has its dedicated department to maintain exceptional quality and consistency. Brands undergo rigorous evaluation and refinement in the Creation and Development department, leveraging insights from the Business Intelligence department to analyse market trends and create menus that resonate with customers’ preferences.
In an impressive feat, KLC Virtual Restaurants rapidly expanded its operations to the UAE and Qatar within 6-9 months. With a remarkable presence, they successfully operate over 70 brands spanning 15+ cuisines across four cloud kitchens in strategic delivery zones such as Motor City, Business Bay, and Media City. The UAE, being an international hub, perfectly aligns with the diverse range of culinary offerings they provide. Given their varied portfolio of brands, their entry into Dubai was a natural fit, thanks to the city’s multicultural environment. KLC is exploring opportunities to expand into Abu Dhabi within the coming year, with plans to establish two additional hubs. In May 2023, KLC achieved a major milestone by successfully making their business profitable in each of the three markets (Kuwait, UAE, and Qatar) they set their sights on, as well as on a group level. Moving forward, KLC intends to expand its operations while prioritising profitability. “As a family business, we remain dedicated to investing in our company and fostering sustainable growth.” Adds Mubarak.
For Mubarak and Mohammed, the key challenge lies in maintaining consistency and reliability across their operations while ensuring a satisfying delivery experience. They are enthusiastic about sharing their food, culture, and commitment to quality with the countries they aim to establish a presence in. Establishing trust and fostering customer loyalty is contingent upon achieving correlation and consistency across all their brands, ensuring that each one is prepared and served the KLC way, utilising the same ingredients and upholding the same quality regardless of location. Teams will be trained to ensure a successful onboarding process, ensuring new members comprehend their operational methods and the popularity of specific cuisines in each zone, enabling them to rearrange their kitchens accordingly. Excited by the prospect of tapping into new markets, Mubarak and Mohammed are determined to continue delivering quality food to their valued customers across all borders.
Before brand creation, thorough market screening and competitor analysis are conducted to gain insights into the specific zone’s landscape. Sample menus are then crafted, considering factors such as suitability for delivery, and tastings are performed to ensure optimal flavours. Packaging is carefully chosen to maintain the food’s quality during delivery. This process continues until the team is satisfied. Once this is achieved, costing and pricing analysis begins, focusing on sensibly pricing the food within the market range and maintaining competitiveness. Brand creation and launch duration vary depending on the cuisine and menu size, typically ranging from one to six months.
Mubarak and Mohammed are also committed to sustainability, considering it a top priority in their business endeavours. They take significant measures to contribute to a cleaner environment and reduce their carbon footprint, recognising the importance of their role in helping society. One of their key initiatives involves reducing the utilisation of single-use plastics throughout all their brands, opting instead for recyclable and eco-friendly packaging options. They actively encourage their customers to participate in recycling efforts and have even launched a comprehensive 6-month campaign that unifies their brands through packaging, aiding as a positive reminder to prioritise recycling. By implementing these initiatives, they make a difference and promote sustainable practices within the industry.
The pair recognises that operating virtual brands within cloud kitchens or traditional brick-and-mortar establishments is a relatively new concept, and its deployment has seen both successes and failures. They firmly believe that maintaining complete control over their virtual brands and operating them within their kitchens enables them to exhibit remarkable adaptability and flexibility in any market they enter. By curating a diverse portfolio of brands, they successfully address various market gaps and cater to consumers’ differing tastes and preferences across different regions. While they acknowledge the presence of popular choices in cuisines, they also see significant potential in unexplored culinary territories and niche markets.
Driven by a passion for innovation and adaptability, KLC Virtual Restaurants is constantly motivated by the ever-changing landscape of the food industry. Their active involvement in food tech and leveraging the latest technological advancements has led to exploring new opportunities and disrupting the traditional food scene. This continuous engagement enables them to consistently seek ways to enhance their business model and foster ongoing development and innovation. Their commitment to staying ahead of the curve fuels their drive to shape the industry’s future.
Their focus remains on expanding their presence within the GCC markets. They are determined to venture into unexplored territories and cities such as Abu Dhabi, Bahrain, Oman, and KSA. Simultaneously, they are developing new brands using existing and new cuisines across all their target markets. They are also exploring the potential of licensing their brands in areas in which they do not plan to operate, a strategic move that aligns with their GCC expansion plans. With a forward-thinking mindset, they are poised to leave a lasting impact on the culinary landscape while extending their reach to new horizons.
