More room to grow for cloud kitchens in Singapore
SINGAPORE (EdgeProp) The Covid-19 pandemic has catalysed the growth of delivery-only online restaurants in Singapore, which operate out of “cloud kitchens”— also commonly referred to as “dark kitchens” or “virtual kitchens”. Since such restaurants send food directly to customers via delivery apps, they circumvent two perennial problems faced by conventional restaurants: high shopfront rental costs and manpower crunch for service staff. The business model also rides on an increasing demand for food delivery since the “circuit breaker” period from April to May, during which dining-out was not allowed and more people worked from home.
This year, the online food delivery market is projected to reach US$4.6 billion ($6.3 billion) in Singapore and will have an annual growth rate of 10.8%, according to global research firm Statista. Worldwide, China is leading with a projected market volume of US$51.5 billion this year. For delivery-only businesses, using a dark kitchen not only lowers upfront costs, but allows them to create different “food concepts” from one kitchen space, as well as test flavours and marketing strategies.
This was what Dark Kitchen Lab, a cloud kitchen start-up under Ebb & Flow Group, did with Wrap Bstrd at the start of this year.