- Published on
Cloud kitchens are centralized licensed commercial food production facilities where anywhere from one or two to dozens of restaurants rent space to prepare delivery-optimized menu items.
A cloud kitchen business model is a F&B business model that allows established restaurant operators the flexibility to experiment with new concepts and themes in their menu, without much investment, and with reduced risks. A restaurant can open a new brand from the same kitchen using their existing resources. This is, in essence, a Virtual Restaurant Brand.
Cloud kitchens also known as “dark kitchens” or “virtual kitchens”. Such kitchens send food directly to customers via delivery apps, overcoming two common challenges faced by conventional F&B businesses: high shop front 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.
Cloud or virtual kitchen allows F&B businesses to make more sense of their current rentals by launching new brands within the same infrastructure. For running a standalone cloud kitchen, you would still need to rent a space, hire the staff, and spend on equipment and utilities.
In the case of virtual kitchens, however, you can experiment with multiple concepts, and the incremental revenue coming from the new brands is only going to contribute further to your existing business.
Virtual F&B businesses only exist online – either on the food aggregator apps or on their own food ordering website or mobile app. On the face of it, they have nothing to do with the restaurant housing the brand, but they use the same kitchen or have a separate area in the main kitchen. They may have different chefs or the same chefs cooking for the virtual brand in the off-peak hours of the restaurant.
Cloud kitchens also known as “dark kitchens” or “virtual kitchens”. Such kitchens send food directly to customers via delivery apps, overcoming two common challenges faced by conventional F&B businesses: high shop front 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.
Cloud or virtual kitchen allows F&B businesses to make more sense of their current rentals by launching new brands within the same infrastructure. For running a standalone cloud kitchen, you would still need to rent a space, hire the staff, and spend on equipment and utilities.
In the case of virtual kitchens, however, you can experiment with multiple concepts, and the incremental revenue coming from the new brands is only going to contribute further to your existing business.
Virtual F&B businesses only exist online – either on the food aggregator apps or on their own food ordering website or mobile app. On the face of it, they have nothing to do with the restaurant housing the brand, but they use the same kitchen or have a separate area in the main kitchen. They may have different chefs or the same chefs cooking for the virtual brand in the off-peak hours of the restaurant.
Parc Komo - CEL Development's freehold mixed development in Changi, is inspired by the Japanese concept of Komorebi, celebrating the blend of nature and order. An attractive mixed development condo from $1,450 psf.
With the growing demand for food delivery, cloud kitchens are being dubbed as the next big thing to happen to the FnB industry. Food is undergoing a retail revolution, and disruption is already happening in the way food is prepared, delivered, and consumed.
Consumer data is pointing towards a massive shift in the way people are eating from restaurants. Customers are becoming increasingly brand agnostic, giving space to the idea of new brands and innovation in operations.
On the same note, restaurant operators worldwide are adapting to cater to the growing demand for food delivery by remodeling and deconstructing traditional operations. Existing restaurants are turning into cloud kitchens and launching virtual restaurant brands from the same kitchen.
The COVID-19 pandemic and the subsequent lockdowns across the globe have further added to the demand for online food delivery.
Consumer data is pointing towards a massive shift in the way people are eating from restaurants. Customers are becoming increasingly brand agnostic, giving space to the idea of new brands and innovation in operations.
On the same note, restaurant operators worldwide are adapting to cater to the growing demand for food delivery by remodeling and deconstructing traditional operations. Existing restaurants are turning into cloud kitchens and launching virtual restaurant brands from the same kitchen.
The COVID-19 pandemic and the subsequent lockdowns across the globe have further added to the demand for online food delivery.
Penrose - a new upcoming condo along Sims Drive is an attractive city fringe condo within 6 min walk away to Aljunied MRT (East-West Line) located in a mature estate surrounded by amenities & eateries.
The F&B industry has been one of the Cloud Kitchens? worst-hit, owing to the complete lockdowns implemented by most nations. During these testing times, food delivery has still continued, with most of the restaurants switching to the delivery-only model, turning themselves into potential cloud kitchens.
As the lockdowns are being lifted in a staggered fashion and restaurants are reopening, while keeping the social distancing norms in mind, the footfall remains significantly lower. People are wary of going out in crowded places and are preferring to order from their homes instead.
This COVID-19 induced demand for food delivery is further leading to the emergence of cloud kitchens as the most preferred format for restaurant operators as well as customers. Once the pandemic is over, the demand for food delivery will be unaffected as people will be more used to the idea of food delivery and habituated to ordering-in.
While the cloud kitchen trend was becoming increasingly popular in pre-Covid times, its relevance has increased manifold during the pandemic. It's also the best way to keep the business afloat while maintaining the social-distancing guidelines.
As the lockdowns are being lifted in a staggered fashion and restaurants are reopening, while keeping the social distancing norms in mind, the footfall remains significantly lower. People are wary of going out in crowded places and are preferring to order from their homes instead.
This COVID-19 induced demand for food delivery is further leading to the emergence of cloud kitchens as the most preferred format for restaurant operators as well as customers. Once the pandemic is over, the demand for food delivery will be unaffected as people will be more used to the idea of food delivery and habituated to ordering-in.
While the cloud kitchen trend was becoming increasingly popular in pre-Covid times, its relevance has increased manifold during the pandemic. It's also the best way to keep the business afloat while maintaining the social-distancing guidelines.
Click Here for a comprehensive guide on "Decoding The Cloud Kitchen Business Models"
Inspired by articles from POSist - a company that provides Robust Cloud Kitchen Software & Restaurant Management System to manage your restaurant business efficiently.
Like, Share & Support
- Published on
PENT-up demand continues to drive new private home sales in August - Business Times
PENT-up demand from local property buyers continues to drive new private home sales with 1,227 units sold in Singapore in August, an 11-month high with confident buyers pushing prices upwards amid worsening economic conditions and rising unemployment.
The high number of transactions surprised some because it was also the Hungry Ghost month, but it got an extra lift from Forett At Bukit Timah, a freehold development that was launched on Aug 8 - the first private residential project launch since the "circuit breaker" ended on June 1. A total of 212 units have been sold as of Aug 31.
According to URA Realis data, August's new home sales of 1,227 (excluding executive condominiums, or ECs) is the highest since September's 2019's 1,270, said Christine Sun, OrangeTee & Tie, head of research and consultancy. It is also up 13.6 per cent year-on-year and 9.3 per cent over July's 1,080. Including ECs, 1,276 units were sold in August.
The high number of transactions surprised some because it was also the Hungry Ghost month, but it got an extra lift from Forett At Bukit Timah, a freehold development that was launched on Aug 8 - the first private residential project launch since the "circuit breaker" ended on June 1. A total of 212 units have been sold as of Aug 31.
According to URA Realis data, August's new home sales of 1,227 (excluding executive condominiums, or ECs) is the highest since September's 2019's 1,270, said Christine Sun, OrangeTee & Tie, head of research and consultancy. It is also up 13.6 per cent year-on-year and 9.3 per cent over July's 1,080. Including ECs, 1,276 units were sold in August.
MYRA - an upcoming freehold condo within 2 minutes walk or 150m to Potong Pasir MRT, eateries, amenities & shopping mall. Get Discounts, Direct Developer Price, Brochure & Floor Plan Here.
"Backed by pent-up demand, we had anticipated that August's new home sales could match the 1,080 units sold in July, or perhaps just moderate slightly given that market activity is typically slower during the Hungry Ghost month (which started on Aug 19)," said Wong Siew Ying, PropNex head of research and content. "Hence, the 1,227 caveats posted in August has surprised on the upside" even as thousands lost their jobs due to Covid.
Singapore's gross domestic product is expected to shrink 6 per cent this year, according to private sector economists polled by the Monetary Authority of Singapore. Ministry of Manpower figures showed overall retrenchments - including citizens and non-citizens - of 6,700 in the second quarter and 3,220 in the first quarter, which was higher than the peak of 5,510 during the 2003 Sars outbreak, but below the 2009 global financial crisis high of 12,760.
Singapore's gross domestic product is expected to shrink 6 per cent this year, according to private sector economists polled by the Monetary Authority of Singapore. Ministry of Manpower figures showed overall retrenchments - including citizens and non-citizens - of 6,700 in the second quarter and 3,220 in the first quarter, which was higher than the peak of 5,510 during the 2003 Sars outbreak, but below the 2009 global financial crisis high of 12,760.
Property Sales Rising Thru Covid
Ten Best Selling Condos during Covid
"Last month's new home sales defied gravity amid the pandemic, rising unemployment rate, Hungry Ghost month and cooling measures," said Ms Sun. New home sales seem to be driven by domestic demand where Singaporeans formed the bulk of purchasers (84.7 per cent) for the 1,223 new non-landed private homes sold last month, she noted.
For many Singaporeans, residential properties may still be a "safer bet" especially for investors who are looking for stable returns during times of economic uncertainty. Properties in Singapore generally have a good track record of yielding attractive capital appreciation over the past 30 years, especially for new projects that are well-located, possess good product attributes and built by renown developers. The low-interest rates have also provided some support for the property market as the borrowing cost or mortgages are now more affordable for new borrowers.
Evan Chung, the head of Knight Frank's property network, said the profile of buyers fit that of mostly "needs-based" purchasers. These include buyers who sold their properties and are now in need of a new home and those getting married in the coming months, or whose weddings have been pushed back due to the pandemic.
For many Singaporeans, residential properties may still be a "safer bet" especially for investors who are looking for stable returns during times of economic uncertainty. Properties in Singapore generally have a good track record of yielding attractive capital appreciation over the past 30 years, especially for new projects that are well-located, possess good product attributes and built by renown developers. The low-interest rates have also provided some support for the property market as the borrowing cost or mortgages are now more affordable for new borrowers.
Evan Chung, the head of Knight Frank's property network, said the profile of buyers fit that of mostly "needs-based" purchasers. These include buyers who sold their properties and are now in need of a new home and those getting married in the coming months, or whose weddings have been pushed back due to the pandemic.
Penrose - the hottest upcoming city fringe condo at Sims Drive By CDL and Hong Leong. Download Floor Plans, Showflat Location, E-brochure, & Enjoy Direct Developer Discount here.
Propping up the market again are HDB upgraders who buy in the more affordable city fringe and mass-market segments. Drilling further into the data, buyers in August went for the more costly homes in the Rest of Central Region (RCR) pushing the share to 49.2 per cent or 604 units.
The OCR (Outside Central Region) accounted for 40.5 per cent or 497 new homes sales (excluding ECs). The expensive Core Central Region made up the remaining 10.3 per cent or 126 homes sold.
RCR's volume of 49.2 per cent is the highest since September 2019 when RCR formed 58.7 per cent of the total new home sales (excluding ECs).
Buyers are also willing to pay more, as seen by the higher median prices on a per sq foot (psf) basis in August over that of July. The estimated median unit prices on a psf in August have all increased across the top nine projects when compared with July's median unit price, with the highest gain of 4.6 per cent at the Daintree Residence.
The OCR (Outside Central Region) accounted for 40.5 per cent or 497 new homes sales (excluding ECs). The expensive Core Central Region made up the remaining 10.3 per cent or 126 homes sold.
RCR's volume of 49.2 per cent is the highest since September 2019 when RCR formed 58.7 per cent of the total new home sales (excluding ECs).
Buyers are also willing to pay more, as seen by the higher median prices on a per sq foot (psf) basis in August over that of July. The estimated median unit prices on a psf in August have all increased across the top nine projects when compared with July's median unit price, with the highest gain of 4.6 per cent at the Daintree Residence.
"Lots of foreign investments and opportunities are heading towards Singapore even before we open our doors to foreigners due to Covid restrictions." - Kiwi Lim (Huttons Asia)
"Most best-seller projects have seen a gradual upward trend in pricing this year," said Lam Chern Woon, Edmund Tie senior director, research and consulting. Added PropNex's Ms Wong: "Apart from Forett At Bukit Timah, which was launched in August, most of the top 10 best-selling projects in August had higher median transacted psf price compared to their respective median launch price."
Whistler Grand sold 51 units in August at a median price of S$1,558 psf, up 14.6 per cent from its launch price of S$1,360 psf. It was launched in November 2018. But two of the top 10 - The Garden Residences and The Woodleigh Residences - saw declines of 5.3 per cent and 5.6 per cent respectively in their median psf. Against July's psf price, The Garden Residences and The Woodleigh Residences managed a small uptick - up 0.3 per cent and one per cent respectively.
Huttons Asia's real estate adviser Kiwi Lim believe the opening of Singapore for MICE events will bring more foreign buyers into the already hot local property market as the current property sales are driven purely by local buyers due to pent-up demand and lesser supply of new launch condos in the market.
Whistler Grand sold 51 units in August at a median price of S$1,558 psf, up 14.6 per cent from its launch price of S$1,360 psf. It was launched in November 2018. But two of the top 10 - The Garden Residences and The Woodleigh Residences - saw declines of 5.3 per cent and 5.6 per cent respectively in their median psf. Against July's psf price, The Garden Residences and The Woodleigh Residences managed a small uptick - up 0.3 per cent and one per cent respectively.
Huttons Asia's real estate adviser Kiwi Lim believe the opening of Singapore for MICE events will bring more foreign buyers into the already hot local property market as the current property sales are driven purely by local buyers due to pent-up demand and lesser supply of new launch condos in the market.
From Business Times news article on 10 September 2020
Support & Like Us
