KUALA LUMPUR (Nov 11): Brahim’s Holdings Bhd is collaborating with Focus Dynamics Group Bhd for the Digital Kitchen Project, a venture in the on-demand food and beverage (F&B) industry, amid an expected increase in demand for e-commerce-based food delivery services due to the COVID-19 pandemic.
In a statement, the two companies said their respective wholly-owned subsidiaries Brahims SATS Food Services Sdn Bhd and Focus Dynamics Centre Sdn Bhd had entered into a Heads of Agreement for the venture.
Under the partnership, Focus will leverage Brahim’s existing central kitchen, logistics and supply infrastructure to create a central kitchen which will service several “silos” of the project, which comprise Shadow Kitchen Network services, Cloud Kitchen, Ready-to-Eat Meals and Digital Food Trucks.
Meanwhile, Focus will be responsible for the technology side of the venture.
A portion of Brahim’s 59,000-sq metre central kitchen will be used to build and house the Shadow Kitchen Network services, which will prepare ready-to-eat meals and food supply boxes.
The Shadow Kitchen Network will comprise existing restaurants throughout the Klang Valley which are not operating at regular capacity, acting as the fulfilment arm for Focus.
A separate part of the central kitchen will be used to set up a Cloud Kitchen, which aims to attract entrepreneurs and small businesses interested in the digital F&B business.
Brahim’s will also revamp its existing infrastructure and logistics for the Digital Food Trucks segment with remodeled food trucks equipped with digital menus, which is expected to be launched next year.
“This collaboration provides a solid foundation to potentially cater up to 60,000 meals per day, through various silos of operations, all prepared and packaged at the central kitchen, and delivered to consumers’ doorsteps via direct delivery or through the Shadow Kitchen Network,” said Focus executive director Benson Tay Ben Seng.
“Our long-term plan is to automate the entire chain, capturing revenue and margins for all aspects of the digital F&B industry for the Klang Valley area. With a kitchen of this size and collaboration with Brahim’s, which already has an existing supply chain network, this grand plan is one step closer to being achieved,” he added.
Brahim’s share price closed up 0.5 sen or 1.85% at 27.5 sen, giving it a market capitalisation of RM64.98 million.
Focus Dynamics closed up one sen or 1.27% at 80 sen, bringing its market capitalisation to RM4.91 billion.