Retail in Asia

In Markets

Cloud kitchens grow in Singapore

With COVID-19 now entering endemic status, food and beverage operators have a better long-term vision of the industry – which looks set to continue as it is, with reduced dine-in capacities and an ever-increasing demand for delivery orders.

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In fact, while the online food delivery market in Singapore generated a healthy $253 million in 2019, this figure is expected to grow significantly to over $947 million dollars by 2025 according to Statista – making this one of the fastest-growing markets in the country.

Leveraging on this timely opportunity, restaurateurs have begun shifting operations from restaurants to cloud kitchens – fully-equipped kitchens that are specifically designed to help operators reach diners via online deliveries, without the hefty setup costs, lengthy renovation times and significant risks typically associated with starting a new restaurant.

In January 2022, Smart City Kitchens will open its latest cloud kitchen facility in Serangoon North. With the introduction of the 14 cloud kitchens in this facility, Smart City Kitchens is now one of the largest F&B establishments in Singapore with more than 170 kitchens.

The facility is ideally situated to reach a potential 1.4 million Singaporean diners, specifically residents in Serangoon, Seng Kang, Hougang and Kovan. Moving into a brand-new facility means operators, who manage to secure one of these 14 kitchens, will be cooking dishes in a state-of-the-art facility with modern equipment.

Arin Aghazarian, Country Manager of Smart City Kitchens, is positive about what the new cloud kitchens will bring to the community. “We are very excited to open our 7th kitchen facility in Serangoon North, which will bring a diverse range of delicious food options to the community.”

The 14 cloud kitchens are in ready-to-move-in condition, fitted with all basic equipment such as exhaust hood, sinks, racks and fridges, so F&B operators can easily set up their kitchens and begin deliveries as quick as 4 weeks.

A number of the cloud kitchens in this facility have already been secured by F&B operators such as I Love Taimei, Mr Coconut, Marché, Annabella Patisserie, and many more brands.

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Marché’s Country Manager, Mr. Jensen Low said, “We are always looking for ways to deliver our fresh quality meals to more customers island-wide. Smart City Kitchens provides us with an affordable solution with less investment risk when compared to a traditional brick-and-mortar restaurant. Now, we are able to focus on crafting our authentic Swiss Rösti and sharing our passion for freshness and quality directly to our valued customers!”