Delivery-only food chain Salad Days is planning to expand its footprint in Bengaluru, India, by opening three new cloud kitchens.

In an interview, Salad Days founder and CEO Varun Madan told ETRetail said the company is investing approximately Rs12.5m ($152,375) to open the three cloud kitchens.

Madan said: “We have invested approximately Rs12.5m to open these three cloud kitchens in Bengaluru, and we are planning to open one more going ahead.

“We are expecting to be monthly operational break even by October this year in the Bengaluru market.

“We are looking at an ROI of 20% from Bengaluru market over the next two years.”

The report said that Salad Days requires an investment of around Rs2.5m to Rs2.8m to establish one cloud kitchen.

The food chain currently operates a total of ten cloud kitchens, one organic farm and one central kitchen in the country's Delhi national capital region (NCR). Salad Days supports more than 200 employees across the region.

According to the report, the company has a repeat customer rate of 65% per month while the current customer acquisition cost of Salad Days is Rs150. The average order value is approximately Rs500.

In the previous fiscal year (FY), the company said that it registered a growth of 50% on a year-on-year (YoY) basis with revenues of Rs158m.

The online delivery and takeaway chain aims to boost its annual revenues to Rs250m for the current FY.

Madan added: “Going ahead, we are planning to open one to two more cloud kitchens in Delhi, however, the priority is to open more cloud kitchens in Bengaluru and then head over to a new city.

“We are planning to spend Rs50m to aid the expansion plans this fiscal.”

Madan told ETRetail that the company is still deciding whether to open its new cloud kitchen in Hyderabad or Mumbai. However, the broader plans include having cloud kitchens in three Indian cities over the next two years.