Cloud Kitchen Grows as Demand Increases in Malaysia

Aug 2020

Malaysia is currently seeing a growth of cloud kitchens to serve the increasing demand for food delivery services as the country registers increases in smartphone users, internet penetration and cashless economy. GrabKitchen, FoodPanda, Dahmakan, Epic Food Hall as well as Cookhouse and Focus Dynamics (Focus) are among the large and emerging names in the cloud kitchen market that is gaining traction as a cost-efficient model for F&B businesses.

Among new cloud kitchen solutions companies in Malaysia, Cookhouse has partnered with various companies including Unilever Food Solutions that provides food ingredients, and Food Market Hub, a maker of cloud inventory management software for food businesses. It is also working with Oddle and Aliments, local system providers of online ordering systems as well as logistic partners such as SoCar and Mr Speedy. Cookhouse also plans to build more cloud kitchens in more locations nationwide starting with Klang Valley areas.

Malaysia’s ACE-listed company, Focus, a well-known operator of entertainment, lifestyle and wine distribution businesses has introduced a smart cloud kitchen which will house 25 individually segregated kitchens to be completed in the fourth quarter of 2020. In particular, Focus aims to target freelance chefs, food entrepreneurs, hobbyists, restaurant owners and virtual restaurants partners. Focus also seeks to create more cloud kitchens by targeting areas that fulfil the criteria of high food delivery demands, accessibility and affordability such as in the center of Kuala Lumpur.

According to research firm Statista, the projected revenue from food delivery services in Malaysia will amount to MYR 896 million (USD 214 million) in 2020, a rise of 46% compared to last year. The firm also anticipated a growth rate of 18% for the sector in Malaysia for the next four years.

(Sources: Malay Mail; The Edge Markets)

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