1. Startups

Centralized Kitchen Strategy and Dailybox Business Efficiency

An exclusive interview with Dailybox Co-Founder & CEO Kelvin Subowo

The pandemic becomes game changer for all industries to survive, culinary is no exception. The rapid growth of food delivery services has triggered culinary players to take advantage of this trend to continue to reach their consumers. Dailybox saw this opportunity by changing the structure of its business model, even before the pandemic occurred.

Before Dailybox came into existence, Kelvin Subowo (Co-Founder & CEO) did have a strong experience in the culinary field. He operates a number of restaurants with his colleagues. However, this business is full of property price competition, which means a good location determines the price of a good property "insane".

Share a brand, to expand to one location only requires a fee that is not kidding because of many determining factors. These conditions begin to change when trending players online food delivery began to show its fangs since 2015-2016.

"I see food delivery this will game-changing. That's why we made it at the beginning of 2018 o the first Dailybox to provide food delivery," he explained to DailySocial.

Since the beginning, Dailybox has focused on home cooking packaged in boxes (rice boxes), are sold at affordable prices and match the tastes of Indonesians.

Dailybox business model in-tweak back in the following year, with the consideration of wanting to be more affordable for the community. Especially at that time, there were still many restaurants that applied different prices for in-store purchases that were cheaper than buying online.

"We think that consumers have already invest their time to buy our products, so we should charge cheaper. So in 2019, we changed the concept completely online delivery cheaper than dine-in. "

Dailybox also began to apply the concept of a centralized kitchen (centralized kitchen) to accommodate the process pre-cook all menus sold by Dailybox. Outlet will just be a place finishing. Thus, Dailybox is able to process one menu in just two minutes.

This strategy began to be implemented when Dailybox opened its second outlet in food court Grand Indonesia, Jakarta. At that time Dailybox had developed 20 menu options c served.

"So it's us that we offer, isn't it? junk food, no fast food, but we serve the fast food. Because our target customers at that time were office workers who only had a short time to eat lunch.”

Centralized kitchen and DailyPartner

This centralized kitchen concept has become game changer create Dailybox itself because it is able to expand to o another in a short time. As of now, it is present in 104 locations in 10 cities spread across various areas cloud kitchen operated related service providers, like GrabKitchen and GoFood Shared Kitchen.

Kelvin explains, spread o this is the final location for finishing every order a customer buys. Meanwhile, the new company has one centralized kitchen in Legok, Tangerang which is able to accommodate needs throughout o in Indonesia with an area of ​​2.500 square meters.

According to him, with this strategy, the company can be more aggressive in expanding to many locations in a short time, while maintaining the same quality of food wherever consumers buy it. Considering the whole process happens in one right.

So, even though o can't be seen directly by consumers, they can still find Dailybox within a radius of 2 km from its location every time they open application online food delivery. "Kitchen centralized this can still be able to accommodate up to three times the capacity of the addition o which we are aiming for.”

Apart from relying on o, the company also made its own expansion by utilizing the home kitchen, called DailyPartner. Kelvin explained in this product, the company invites kitchen owners who are not being used optimally to join Dailybox.

The minimum area of ​​the kitchen that can be registered is 10-15 square meters. There isn't any franchise fees determined, the partners will be trained by the company so that their abilities match the o owned by Dailybox itself. All supplies will also be provided by a centralized kitchen.

"So our expansion is very unlimited because the operations in the field are designed very simply. Currently there are 10 locations for DailyPartner, still centrally located in Greater Jakarta.”

Intense competition in the industry

As is known, the F&B business is very competitive because low barrier so easy to imitate. Therefore, continuous innovation is the only way to survive in the eyes of consumers.

Dailybox with its proposition as home-cooked food, opens opportunities for MSMEs to collaborate. The company curated all the recipes and menus of MSMEs to be later developed and widely produced through all outlets.

One of them that has been realized is the Chicken Geprek Nagih menu supplied by the salted fish sauce entrepreneur Mrs. Yanti from Jakarta. "Now he has produced 1 ton of salted fish sauce in a month, he has also opened new jobs for his home environment."

As a result, with this strategy, Dailybox becomes more versatile as a brand because it can cover many home food menus, not specific to just one thing. However, under The Daily Group, there are other F&B brands, such as menu sushi-to-go, Shirato, and Anytime.

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Kelvin explains expansion brand this is a step towards responding to different consumer preferences. "We try bundling Dailybox with some brand as a support.”

In addition, in the near future the company will soon expand outside Java, to be precise in Pontianak, West Kalimantan. Interestingly, due to internet penetration and food delivery different from Java, Dailybox comes with a restaurant concept dine-in with an area of ​​650 square meters.

"food market in Indonesia it is very wide, in fact the competition is not as bad as in Jabodetabek. In Pontianak it will be o our biggest because there is indeed GoFood penetration and GrabFood isn't deep yet, so it's necessary dine-in for experience at our place."

Not only Pontianak, this year the company will expand to other locations outside Java, such as Makassar, Manado, Gorontalo, to Eastern Indonesia. Targeted at least Dailybox has 200 o.

Last week the company announced Series A pendanaan funding led by Vertex Ventures SEA, and supported by Kinesys Group with an undisclosed amount. Dailybox wants to capitalize on growth online food delivery which the e-Conomy 2020 report estimates will reach $23 billion (GMV) by 2025 in Southeast Asia. This figure shows the strong average growth rate per year (Compound Annual Growth Rate) in the food delivery service industry which accounts for nearly 30%.

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