The last MCO made online food delivery a new trend.
But, let me tell you about the new “Cloud Kitchen” concept that will further change the F&B industry as the new MCO normalize online food delivery and how @GordonRamsay can capitalize it👇
But, let me tell you about the new “Cloud Kitchen” concept that will further change the F&B industry as the new MCO normalize online food delivery and how @GordonRamsay can capitalize it👇
So, why is this important?
Because I believe I just spotted @GrabMY version of Cloud Kitchen called GrabKitchen in Hartamas.
They started the concept in Indonesia and have been growing in the region like crazy. 50+ locations across ASEAN in the past 2 years.
Because I believe I just spotted @GrabMY version of Cloud Kitchen called GrabKitchen in Hartamas.
They started the concept in Indonesia and have been growing in the region like crazy. 50+ locations across ASEAN in the past 2 years.
What is a Cloud Kitchen, CK?
It’s a commercial food production facilities where anywhere from 1-2 dozens of restaurants rent the kitchen to prepare foods for DELIVERY.
Simply said, it’s like a food court, but without the dine-in tables. Only delivery*
*keep reading
It’s a commercial food production facilities where anywhere from 1-2 dozens of restaurants rent the kitchen to prepare foods for DELIVERY.
Simply said, it’s like a food court, but without the dine-in tables. Only delivery*
*keep reading
Some referred CK as a ghost kitchen, dark kitchen, shared kitchen, virtual kitchen, food delivery only restaurant, etc.
Check out the video below for a tour in SG GrabKitchen👇
Check out the video below for a tour in SG GrabKitchen👇
You may notice that the GrabKitchen has a dine-in area whereas most CK only do delivery.
I believe it’s a new Cloud Kitchen concept that Grab is experimenting given the “hawker culture” in the region.
I believe it’s a new Cloud Kitchen concept that Grab is experimenting given the “hawker culture” in the region.
How does the biz model works?
Biz owner- Instead of spending a huge amount of 💰 setting up a full restaurant, you basically:
rent a kitchen> get orders through delivery partners> prep the food and pass it to the delivery partners for it to be delivered, capitalizing the trend
Biz owner- Instead of spending a huge amount of 💰 setting up a full restaurant, you basically:
rent a kitchen> get orders through delivery partners> prep the food and pass it to the delivery partners for it to be delivered, capitalizing the trend
It’s a win for you since you can reduce your set up costs AND ingredients costs.
CK gives you a low-cost way to expand your restaurant without investing heavily. Besides, since CK houses multiple restaurants, you can get a bulk order discounts on similar ingredients.
CK gives you a low-cost way to expand your restaurant without investing heavily. Besides, since CK houses multiple restaurants, you can get a bulk order discounts on similar ingredients.
We all know the margin structure of a restaurant biz is terrible. High capital expenditure, CAPEX (aka modal in Malay), low margin biz.
CK try to remove the high CAPEX aspect of the biz from the restaurant owner and increase your margin through labor efficiency.
CK try to remove the high CAPEX aspect of the biz from the restaurant owner and increase your margin through labor efficiency.
Customers- Have you ever used one delivery app to order foods and the other app to order your fav drinks at the same time?
With CK, you can easily order multiple items, pay 1 delivery fees and get it delivered at the same time!
With CK, you can easily order multiple items, pay 1 delivery fees and get it delivered at the same time!
Delivery partners- They leverage their search data to see the type of foods that the area demand (hell yeah they can predict what are you craving for!) and bring the supply in (your fav restaurants) by building a CK to match the demand in your area
It’s a win for them to build a CK since they’ll be able to increase:
-the # of orders
-the Average Order Values (AOV)
-order frequency
- margins to restaurants (by upselling other services)*
All of it leads to them making more money!
*keep reading
-the # of orders
-the Average Order Values (AOV)
-order frequency
- margins to restaurants (by upselling other services)*
All of it leads to them making more money!
*keep reading
CK can also offers other services to the restaurants like:
-Data analytics and performance marketing to capture more customers and offer new menu
- Fin services like invoice financing, deducting the loans against the restaurant order revenues
-Data analytics and performance marketing to capture more customers and offer new menu
- Fin services like invoice financing, deducting the loans against the restaurant order revenues
So, how does Gordon Ramsay or any other celebrities can capitalize on CK?
By opening their restaurant to all CK locations to satisfy the demand via delivery.
I’m 90% sure people will still pay for the delivery experience (vs dine-in ambiance). It’s low-cost to experiment!
By opening their restaurant to all CK locations to satisfy the demand via delivery.
I’m 90% sure people will still pay for the delivery experience (vs dine-in ambiance). It’s low-cost to experiment!
https://twitter.com/shaanvp/status/1348038181405425665
To be continued...
I’ll explain about the Cloud Kitchen history and it’s potential future direction.
PS. We’ll talk about Domino’s Pizza!
I’ll explain about the Cloud Kitchen history and it’s potential future direction.
PS. We’ll talk about Domino’s Pizza!
As some of you pointed out, there are multiple Cloud Kitchen models.
Currently, I believe the Hybrid Cloud Kitchen tends to be dominant in Malaysia but that could change as Grab and FoodPanda expand in the market.
Currently, I believe the Hybrid Cloud Kitchen tends to be dominant in Malaysia but that could change as Grab and FoodPanda expand in the market.
You might not realize this, but @DominosMY is a CK biz.
It is primarily a delivery business. They don't need to be at the busy area or in the mall where there's a lot of foot traffic.
Their margin is higher than the industry. That’s why they can give you free pizza
It is primarily a delivery business. They don't need to be at the busy area or in the mall where there's a lot of foot traffic.
Their margin is higher than the industry. That’s why they can give you free pizza
Historically, their CK concept evolved from delivery through dial-ins> mobile> digital channels (web & app).
Now, you can even order Domino’s delivery via the IOT devices (Alexa, Google Home, etc.)🤯🤯🤯
Now, you can even order Domino’s delivery via the IOT devices (Alexa, Google Home, etc.)🤯🤯🤯
Fast forward now, the most high profile CK would be the “Cloud Kitchen” founded by Travis Kalanick (Ex-Uber founder).
PIF (Saudi’s version of Khazanah) invested $400 mil (~RM1.6B) on the biz to scale it across the world
PIF (Saudi’s version of Khazanah) invested $400 mil (~RM1.6B) on the biz to scale it across the world
What the future would potentially look like? I would guess that:
1- We probably see the growth of CK locations with different models being experiment
2- The rise of celebrity branded F&B within it. If they can “OEM” cosmetic, can they also do the same with food?
1- We probably see the growth of CK locations with different models being experiment
2- The rise of celebrity branded F&B within it. If they can “OEM” cosmetic, can they also do the same with food?
3- The “cloud” concept going upward of the food verticals, from cooked foods to raw foods (aka groceries).
At a large scale: Amazon’s fulfillment centre + Tesco
At a small scale: Amazon’s fulfillment centre + 99 Speedmart
China is experimenting with this concept
At a large scale: Amazon’s fulfillment centre + Tesco
At a small scale: Amazon’s fulfillment centre + 99 Speedmart
China is experimenting with this concept
If you’re interested with the food ecosystem and how they evolve, do check out @patrick_oshag podcast with Zach Fuss here👇
open.spotify.com/episode/6xChdm…
open.spotify.com/episode/6xChdm…
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