KUALA LUMPUR (March 27): The cloud kitchen concept has been around much earlier but thanks to the Covid-19 pandemic, its presence in the market has become more established.

JLL Property Services (M) Sdn Bhd country head YY Lau foresees a market for cloud kitchens going forward. “We think that this surge in demand for purchasing F&B online may continue as a certain percentage of consumers have embraced this as part of their lifestyle. In fact, Statista estimates that online food delivery will grow by 10% per annum in the next five years.”

Their lower start-up and operating costs are some of their main draws. “This allows F&B operators to get creative and test new menu offerings, all without the added pressure of sky-high rents or having the need for front-of-house staff. This approach suits businesses that are starting out or want to expand their offerings,” says Zerin Properties CEO and managing director Previndran Singhe.

Cloud kitchens can also serve as a business strategy for F&B operators, and Savills Malaysia director of retail services Murli Menon foresees the format continuing to evolve and grow. 

“This is one of the ways to combine and optimise online-to-offline commerce and have a seamless presence in both channels, or build a strong online/delivery channel presence, depending on brand offerings and long-term strategies,” he says.

While cloud kitchens typically cater to delivery-only businesses, more hybrid concepts could emerge. “There could be a growth of the hybrid concept whereby cloud kitchens also offer dine-in services, especially if they are in good commercial locations,” says Savills Malaysia group managing director Datuk Paul Khong.

Read more about it in the latest issue of City & Country, out with The Edge Malaysia weekly’s March 28, 2022 edition.