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Rise of the Virtual Kitchen

Virtual kitchens: solution or competition?

The concept began to flourish in Jakarta following rising demand for food delivery.

  • Food delivery services have surged significantly over the past few years fuelled by a rise in ‘super app’ development. The recent pandemic has also accelerated home-delivery transactions following dine-in restrictions during the lockdown period.
  • To capture demand, platforms have begun to optimizetheir food merchant directories and improve delivery strategies by introducing a new F&B business model called cloud kitchens which focuses solely on online sales.
  • The two biggest super app players in Indonesia, Gojek and Grab, recently expanded their cloud kitchen business following the success of their food delivery platforms, GoFood and GrabFood.
  • Prior to cloud kitchens, delivery from malls was found to be difficult because of the time it would take for a driver to park, enter the mall, order the food and deliver. A complementary kitchen which only takes delivery orders helps reduce delivery times from restaurants to consumers.

Virtual or cloud kitchens - also known as 'ghost kitchens' - are a virtual restaurant which operate solely for delivery services. Unlike traditional restaurants, cloud kitchens do not necessarily have seating areas for dine -in or even a shopfront.

Savills Research