Singapore cloud kitchens: How should F&B operators respond to the trend?
As online food delivery services in Singapore continue to grow, another major trend is sweeping across the F&B sector in the country. There is a spurt in the rise of cloud kitchens or centralised remote kitchens — some call it ghost kitchens. The mainstream Singapore newspapers and business publications have been reporting on the cloud kitchen initiatives of Smart City Kitchens, Grab and the like.
How does this latest trend affect the F&B industry here? Will it be beneficial to restaurant owners and aspiring entrepreneurs who want to make a mark in the F&B space? What are the risks of following the trend and operating from a cloud kitchen? Questions galore and there is a need for a balanced perspective.
Neeraj Sundarajoo, Co-Founder and CEO of Zeemart, a rapid-growth food-tech company that helps F&B operators and companies in the HoReCa sector with their digitalization and software for procurement and inventory management, looks deeply into the cloud kitchen trend and evaluates the advantages and potential risks in an elaborate opinion piece in the Singapore Business Review. His advice for F&B operators is to:
a) Be prudent about the suitablity of cloud kitchens for each F&B business on a case to case basis
b) Evaluate the cost-benefit closely
c) Read the fine print with the terms and conditions of operating from a cloud kitchen
d) Be adaptable and take the steps required to respond to the changes that will undoubtedly happen as a result of the emergence of cloud kitchens.
Check out the entire article here, courtesy the SBR.
