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Carrying out a Multi-Brand Strategy, the "Cloud Kitchen" Operator Efficient Route

Multi-brand alias multi-brand has been adopted by various cloud kitchen operators and culinary players in Indonesia

Last year DailySocial.id review business cloud kitchen which has become increasingly popular since the pandemic. The expansion of the jor-rod location was carried out so that it is closer to consumers who depend on the delivery application for their stomach affairs. Under observation At that time, there were at least 15 operators operating in Indonesia.

This business potential is jumbo. Quoting from the report e-Conomy 2022, transportation and food delivery services online is predicted to grow with a CAGR of 22% and a GMV value of $15 billion in 2025. As for this year, CAGR is predicted to grow 19% with a GMV of $ 8 billion year-on-year. Although it is not detailed as to how much the contribution from food delivery is, at least the figures above illustrate how delicious this business is, as well as the two of them having a high dependence on one another.

In a recent report released Grab stated that regionally monthly spending on food delivery services and daily shopping increased by 30% in May 2022 compared to November 2021. In Indonesia, the average amount of money spent per order on services GrabFood increased by 54% from 2019-2022. As for the largest amount spent this year, it reached IDR 9 million.

In the industry cloud kitchen, Grab also a pioneer in Indonesia with GrabKitchen since September 2018. Unfortunately, four years later on October 24 2022 it announced that it would close on December 19 2022. The company argued that its business growth was inconsistent, as well as a shift to an asset-light business model. As a result of this decision, the company had to lay off dozens of employees.

“This situation forced us to take the difficult decision not to continue operations GrabKitchen in Indonesia, effective from December 19 2022," said the Chief Communications Officer Grab Indonesia Mayang Schreiber in a written statement.

The companies had worked together with Yummykitchen to expand presence from about 40 locations to 80 locations, according to published data Grab Indonesia as of February 2021.

GrabKitchen / Grab

Decision Grab raises the question, is this business inherently difficult to reach the point of profitability?

At first it was business cloud kitchen it's like property asset management. Property owners who have assets divide their land into plots the size of a kitchen to rent out to tenant none other than culinary entrepreneurs. Here there are players who take such a position, there are those who add technological elements with automatic integration to delivery and marketing applications pintu. Grab and Gojek enter this segmentation.

It's just that the concept is taken GrabKitchen is too exclusive. In the meaning of merchant can only sell at GrabFood only, can't access other applications. Even though this delivery business still relies on a cash-burning strategy, there is no guarantee that demand will be stable or higher. Not to mention expansion to new locations, Grab You have to invest up front by renting a property. From the merchant's side, rental costs are also incurred which are always incurred.

“They closed because there were too many capital expenses in front, meanwhile demandit just depends on online. When online goes down, expenses remain the same from month to month, such as building rent, paying employees," explained the Co-founder and CEO Wahyoo Peter Shearer to DailySocial.id.

Rebel Foods, operator cloud kitchen who have achieved status unicorn in India, it can be said to be one of the pioneers in switching from a fast food restaurant chain to a model cloud kitchen multi-brand supported by an efficient operating system.

In Indonesia with a legal entity PT Rebel GoFood Indonesia, they also brought in private brands from their home country, such as Faasos and Oven Story. Also launched special brands for the Indonesian market, namely Box & Co., Ban Zai, Feeling Brew, Bros Fried Chicken, and Ayam Ambyar. Each of these brands is positioned in such a way that it meets different customer needs.

One of the most significant advantages of cloud kitchen multi-branding allows a company to offer several different cuisines from the same place. Because there aren't any front-of-house at all, cloud kitchen Multi-brands have evolved to cater to different customer tastes, each functioning under a separate brand.

For example, one company cloud kitchen can operate three brands, each specializing in Indian, Italian and Chinese cuisine, from one unit. But to customers, it appears to be an independent brand with independent operations serving different cuisines. Since it is a delivery-only format, the low start-up and marketing costs are often cited as the biggest game changers.

With minimum barriers to entry and low capital costs, cloud kitchen multi-brands are more profitable when compared to traditional or even restaurants cloud kitchen independent. Cloudkitchen multi-brands cater to a wider customer base and have the capacity to increase the growth rate of a single kitchen unit. Efficient resource utilization, adequate inventory levels and controlled food costs provide better predictability in business.

Under observation DailySocial.id, this multi-brand strategy has been implemented by many players cloud kitchen, also a culinary player himself. Here's the list:

business modelMulti-brandInformation
Memories BrandsF&BKenangan Coffee, Chigo, FlipOwn and acquisitions
Jiwa GroupF&BSoul Promise, Soul Toast, Soul TeaOne's own
Haus!F&BThirsty, Ganjel Roti, Spicy CyiinOne's own
DailyboxF&BShirato, Breadlife, Dailybox, LumiereOwn and acquisitions
Kulo GroupF&BKulo Coffee Shop, Pochajjang, Kitamura, Mazeru, Oseng Mie Jontor, Xiboba, Xiji, Bu Eva Special Sambal, Mo Tahu AjaOne's own
hangryCloudkitchenMoon Chicken, Sangyu, Koplo Chicken, Dari Pada, Pizza Gang, Accha, Wai Thai FoodOwn and acquisitions
Rebel GoFoodCloudkitchenFaasos, Oven Story, Box & Co., Ban Zai, Feeling Brew, Bros Fried Chicken, Ayam AmbyarOne's own
Wahyoo Kitchen PartnersCloudkitchenFried Duck Makes You Rich, Chicken Paduka, Meatballs Make You RichOne's own
Food StoryCloudkitchenChicken Pao, Lahab Chicken, Bowlgogi, Gaaram, Aidon, Soto Legenda, Rames Kita, Gaem BullAcquisition
Dish ServeCloudkitchenKitFit, Uncle Tam, Baba Burger, Chickass, Love in Tokyo-
LaculinaryCloudkitchenLet's Toast, Se'I Sapi Lamalera, Yukirisu Bento, Don To Go, Nalor, Yellow Chicken, Geprek Gian, Tiarap Duck Chicken, Woo Ai Mie, Se'I Indonesia, Bakso Benhil, Lahab Chicken, AigemiCulinary partner
LegitGroupCloudkitchenSek Fan, Pastaria, Sei'tan, Ryujin, Juju ChikinOne's own

Wahyoo

As known, Wahyoo also enliven the market cloud kitchen in Indonesia by inaugurating Wahyoo Kitchen Partners which has been initiated since the last year. By looking at the dynamics in the market, Wahyoo Kitchen Partner takes a slightly different proposition.

The company takes advantage of partnerships with culinary SMEs that have been part of the company, and attracts those who want to utilize their "free" kitchens. In the sense that they are not busy and can still serve consumers via other platforms. Wahyoo So there is no need to invest in property because you already have an SME network.

Mitra Wahyoo can also maximize the potential of its kitchen and existing employees, as long as it still meets the standards in terms of cleanliness and cooking quality required by Wahyoo. There are 250 small restaurants recorded from 27 thousand partners Wahyoo who have joined Wahyoo These Kitchen Partners.

Sumber: Wahyoo

"In particular, we want to help culinary SMEs that are already in our network so that they no longer have to spend additional capital because they already have the kitchen and employees. Because we are sharing economy, so in principle we really want to advance SMEs," said Peter separately during a media gathering some time ago.

So far, Wahyoo has operated three private label food brands, namely Fried Duck Makes Tajir, Ayam Paduka, and Bakso Makes Tajir. Meanwhile, Fried Duck Makes You Tajir is now available in 134 outlets spread across Jabodetabek, Bandung, Solo, Semarang and Bali. Furthermore, Ayam Paduka is available in 42 outlets spread across Jabodetabek, Bandung and Solo, and Bakso Bikin Tajir is currently available in 18 outlets in Jabodetabek.

Wahyoo markets its products through GrabFood, GoFood, and ShopeeFood. Not only that, the company also invites its partners to sell offline for dine-in and takeaways. Thus, they do not need to rely entirely on online platforms for their sales.

"For us, the important thing is that they can sell and buy stock from us again. In terms of anyway offline it has a side awareness that we can get to market brand We."

For Peter, the company will continue to increase the number of food brands that can be sold by its SME partners, there will be at least eight to 10 additional new brands. The culinary variations range from martabak, briyani rice, milk tea, soto, chicken noodles and fried rice.

The entire supply of these products will be in shape pre-cook so that it doesn't take long for partners to process it. As a result, the cooking process becomes more concise, a maximum of five minutes to the consumer's home. All supplies are prepared in the central warehouse Wahyoo which is located in Daan Mogot, West Jakarta is adjacent to the office Wahyoo. From there, the food delivery process will begin to o.

"Because we also use online [food delivery] we also need to make sure the algorithm of the kitchen partner does not let oIt got a bad rating because it took too long to cook. "So standardization is important, that's why there are also regular visits by the field team."

According to him, this multi-brand strategy is used so that each outlet can achieve maximum potential from the utilization of empty kitchen capacity. The results, on average revenue for o can increase and ultimately support the welfare of each kitchen because one kitchen can offer a variety of foods.

"However, we also ensure that these kitchens have sufficient ability/capacity to sell a lot brand (so that standardization and quality are maintained."

As for monetization of the business cloud kitchen di Wahyoo different for each brand. However, Peter ensures that in essence from every food sale there will be a share of the sales proceeds to kitchen partners. This concept is considered attractive because it does not require additional capital and only uses existing resources to sell other brands that have been provided by Wahyoo Kitchen Partners.

economic unit seen by Wahyoo consists of various metrics, starting from revenue, o active per month, avg revenue per outlet (sales on online platforms), and basketball size (purchase raw materials/supplies on the platform Wahyoo). “Of course, we also look at the margin on each sale brand and also income (revenue sharing) to Wahyoo Kitchen Partners.”

In facing the challenging economy ahead, Peter realizes that these conditions will have a direct impact on the culinary and food industry. For this reason, the company strives to always provide raw materials at competitive prices and follow market prices.

“We strive to continue to get the best prices from partners and beg us, so that even in these unstable times we can still offer the goods that consumers need in a timely manner affordable and compete.”

Dailybox

Co-founder and CEO DailyBox Kelvin Subowo explained that his party was more suited to being positioned as an F&B startup multi-platform, no cloud kitchen with multi-brands. In its operations, the company relies on the presence of players cloud kitchen and brings its private brand into every kitchen.

“Dailybox Group may be a conventional F&B startup, so it's a concept multi-brand what is meant is no longer many brands in one kitchen, but rather various brand who can cover it appetite our customers.”

More Coverage:

Currently, Dailybox operates four brands, Shirato, Breadlife, Dailybox, and Lumiere. Lumiere is a cake brand that the company recently acquired. As multi-platform, the company will balance the spread amount cloud kitchen and offline stores. Currently there are 20 Breadlife shop points, which are also filled by Dailybox and Shirato above the Breadlife shop. In fact, the company has expanded its business to Singapore in October 2022.

Central Kitchen Dailybox Group / Dailybox Group

In measuring economic units in Dailybox, it uses COGS (cost of goods sold) or the price of goods sold. The company didn't do it costs down, but rather keeps prices stable through production efficiency. This efficiency is implemented by producing our own food through the Dailybox Group's central kitchen.

The next metric is outlet EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). “As we know, the industry cloud kitchen has a huge burden on food delivery. So, burden operation Our day to day is not very big and we managed to maintain positive EBITDA from when we were founded until today. Both metrics greatly influence food quality.”

According to company data, the contribution from the online delivery business still dominates over eating in stores. Last year the contribution reached 90%, but this year it fell to 60%. The company itself now does not only rely on online platforms.

He reasoned, if you want to expand more massively, presence on online service platforms must be collaborated with presence in offline markets. Because, even though online service penetration has increased, this service still does not reach all second and third tier cities. People in this area still love the culture of hanging out while eating culinary delights.

"Surveys show that around 79% of Indonesian people have no doubts about doing so dine-in at the restaurant. Therefore re-opening the service dine-in is the company's strategy to be closer and more relevant to our customers.”

Meanwhile, Dailybox's side, in facing future challenges, will make price adjustments within reasonable limits. With large enough volumes, companies can lock in prices for many materials for some time.

"With in-house central kitchen "and digital ERP & SOP technology allows us to work more efficiently so we can compensate for price fluctuations in the market," he concluded.

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