The State of Cloud Kitchens in Indonesia
Cloud Kitchen (Satellite Kitchen) is a business where restaurants without Eat In (Dine In) space or Take Away (Take Away) take orders and deliver them on a smartphone app.
Grab Kitchen was the first to open 40 stores in Indonesia, but GoFood Kitchen, which was created as a joint venture by combining the know-how of India's Rebel Foods with GoJek's big data on the complexity of the Indonesian market and SME commerce, is on the side of the chase with 20 store openings (as of February 2020).
In the same online sales business, but unlike general merchandise sales, food delivery requires a location strategy that is tailored to the consumer market, and just like real stores, the concept of "branching out" is important, and Grab Kitchen is currently available in five major cities in Indonesia.
Criteria for selecting a cloud kitchen location
- The ability of the partner to be closer to the consumer, taking into account delivery distance
- The ability to meet more of the surrounding consumer's needs in one collective kitchen
GoFood Kitchen is set to close next month, and the GoFood Festival and Launched at the same time, no space rental fee is charged to partners, and full commission from sales system, while individuals can use their home kitchens to run a cloud kitchen business. The screening process for joining GoFood is not at home because if you do, the quality of service could be compromised. There should be a requirement for a kitchen in the commercial space.
The Future of Cloud Kitchens in Indonesia
However, if you become a partner of GoFood Kitchen or Grab Kitchen, the most important factor to consider when opening a restaurant is the location, but if you become a partner of GoFood Kitchen or Grab Kitchen, the most important factor to consider is the most strategic location that the decacorn companies, GoJek and Grab, have selected using all the information available.
Benefits of the Cloud Kitchen
- Basic amenities such as kitchen, water, drainage system, electrical lines and gas lines are provided, which reduces the rent and renovation costs of the store.
- As a delivery-focused business, you can use GoJek and Grab's existing delivery methods to reduce operational costs.
- There is no upfront payment of rent, which accounts for a large percentage of fixed costs in the restaurant business.
- It is easy to get a fixed, repeat customer (langganan) because of the speed of delivery from the time the order is received on the smartphone app to the time of delivery and the guaranteed customer service other than the food.
- The ability to use GoJek and Grab's cloud kitchens when expanding to other cities guarantees the best location and provides the best service from order receipt to delivery.
In the West, people tend to cook at home rather than order food from outside, but in Southeast Asia, including Indonesia, I think convenience-oriented, on-demand-based services are likely to grow even more because the younger generation, in particular, is not afraid of ordering food from outside.
Also, in terms of Indonesia's national character, I believe that in the past, AFI ( (Akademi Fantasi Indosiar) and general singing at Indonesian Idol Just as many celebrities were born out of proud amateurs, "gap moe" and "success story lovers Since there are so many "GoFoods", GoFoods and Grabs have a lot of delicious local and general home cooking buried in the region. I think that if we put out a project that would uncover the talent to make it, it would be a nationwide success.
— やまぞう (@yamazou) June 26, 2020
In this way, we believe that Cloud Kitchen is a business model that not only revitalizes the Indonesian food and beverage industry and grows the market, but also provides opportunities for small-scale restaurant operators and housewives to start their own business with less capital.