The COVID-19 pandemic has significantly boosted the food delivery business in many countries around the world, leading to the rise of another business model known as Cloud Kitchen. Also referred to as Dark Kitchen or Ghost Kitchen, this model represents restaurants that operate without a physical storefront. Providers of Cloud Kitchens offer shared kitchen spaces for various restaurants to rent, allowing them to prepare food solely for delivery. This setup enables restaurants looking to expand to test new locations without the need for a physical storefront. Consumers can also order from multiple restaurants in a single order. This business is expected to grow significantly in Europe, America, and the Asia-Pacific region.

                 

            Source: asianhotelandcateringtimes.com

                  In Thailand, cities like Bangkok, which are home to numerous famous and legendary restaurants spread across various locations, face the challenge of establishing Cloud Kitchens in multiple areas. Many companies are focusing on investing in this model. According to the Kasikorn Research Center, by the end of 2020, there will be around 10 Cloud Kitchens in Bangkok and its vicinity, expanding to 50 by 2022.

Companies operating Cloud Kitchens in Thailand include those already involved in delivery applications. Grab has launched Grabkitchen at Samyan Market, featuring over 10 well-known restaurants to serve a delivery radius of 8 kilometers. Meanwhile, LINEMAN has partnered with the popular restaurant review site Wongnai to establish LINEMAN Kitchen in the Punnawithi area, incorporating over 13 famous Bangkok restaurants and targeting residents within a 6-kilometer radius. Both companies plan to expand their branches to various districts in Bangkok.


                  Additionally, companies already in the food business are also entering the Cloud Kitchen market. The Central Restaurant Group (CRG) is expanding its Aroi Dee restaurant chain into Cloud Kitchens, believing there is still ample space for expansion in Bangkok. On the other hand, Minor Group has launched Sizzler Cloud Kitchens in areas like Kasetsart University, Don Mueang, and Pracha Uthit 90.

            Real estate businesses are also preparing to invest to support the growth of Cloud Kitchens. Frasers Property Thailand has announced a roadmap for investing in commercial buildings in various urban areas to accommodate Cloud Kitchen and express delivery businesses. Siamese Asset has opened Bizzie Dish in the Blossom at Sathorn project to serve the local community in the Sathorn-Charoenrat area and has opened another branch at Ram Inthra 64.

                  The ongoing expansion is driven by the need to create new sales in areas that currently lack Cloud Kitchens. However, the challenge for small and medium-sized restaurants in expanding their branches lies in the community's attachment to local restaurants participating in Cloud Kitchens, which can affect repeat orders in those areas. There are also concerns regarding quality control when restaurant operators do not use their own staff for food preparation. Nevertheless, with the ongoing COVID-19 crisis and the growing habit of ordering delivery becoming a part of daily life, along with many areas in Bangkok still lacking Cloud Kitchens, we can expect to see continued growth in the Cloud Kitchen business.