Cloud (Kitchens) on the Horizon: Implications for Foodservice Operators in India and Southeast Asia
Cloud kitchens are one of the most fascinating foodservice developments in India and Southeast Asia. Restrictions imposed on dining-in during Covid-19 have magnified operators’ interest in these delivery-only models. The digitization of foodservice that began with delivery is working its way up the value chain through cloud kitchens.
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“We believe cloud kitchens will democratize foodservice kitchens as aggregators did for delivery – once the ‘economic moat’ of a few large QSRs,” according to Umesh Madhavan – Consumer Foods Analyst. As an asset-light business model built to squeeze out efficiencies, these kitchens have lowered the entry barriers and will result in greater foodservice capacity and increased competition.
In this report, we provide the context for cloud kitchen models and draw out the considerations for foodservice operators planning to invest in them.
