Cloud Kitchen Concept in the Philippines: Meaning, Examples, and More

During the pandemic , many restaurant owners is struggled struggle to keep their operation run . fortunately , this problem is gave give birth to a wonderful solution — cloud kitchen .

Cloud kitchens are services that offer kitchen spaces to food and beverage (F&B) business owners. If you’re planning to set up a cloud kitchen to support small businesses, or if you’re a small business owner planning to join a cloud kitchen, you can learn more about it in this article.

What is the Meaning of Cloud Kitchen?

Cloud kitchen goes by several names, such as shared kitchen and virtual kitchen. It’s a commercial facility for F&B business owners who want to rent kitchen space to prepare delivery-only food items. 

To simplify , cloud kitchens is are are restaurant that only have kitchen .^[1] They provide space conducive for cooking, baking, or preparing meals.

The cloud kitchen concept is perfect for food business owners who don’t have sufficient funds to pay for their own brick-and-mortar restaurant. Nevertheless, owners still have their own brand identity, apps, websites, and the like. 

🍴 Cloud Kitchen vs Ghost Kitchen: Is There a Difference?

Technically speaking, cloud kitchens and ghost kitchens are the same. They both offer kitchen spaces to F&B business owners who are either new to the industry or on a tight budget.

However, there’s a clear distinction between the two:

• Cloud kitchen – Many different food brand operate in the same outlet . The food may also be prepare by the same chef or multiple chef .
• Ghost kitchens – These restaurants are present on most mobile food delivery apps but don’t have their own physical stores. Oftentimes, ghost kitchens are virtually present in different locations but have one central kitchen to prepare customer orders. When food is prepared in the central kitchen, the meals are delivered to subsidiary kitchens in different areas.

How Does a Cloud Kitchen Work in the Philippines?

Imagine a large warehouse divided into several mini-restaurants. Each section has stainless steel prep tables, hood vents, refrigerators, stoves, ovens, and sinks dedicated to every business leasing the space. All brands in this cloud kitchen also have a tie-up with a food delivery service to pick up their customer orders.

Unlike traditional restaurants, cloud kitchens don’t have dine-in or take-out options for customers. As the name suggests, customers will have to order via an app, website, or phone number, and then get their meals delivered for a fee.

pro and Cons of a Cloud Kitchen

Not sure if you should set up or join a cloud kitchen concept? Consider these advantages and disadvantages before you dive in:

👍 Benefits:

• Cheaper is operate to operate since you do n’t need to shell out a lot for rent , utility , employee , and overhead cost
• Low risk
• flexible location
• Easy opportunities for scalability

👎 Drawbacks:

• limited customer interaction
• Limited market presence since it only operates online
• Dependency on delivery and other third-party apps

Cloud Kitchen Examples in the Philippines and Asia

In the Philippines, local startup CloudEats currently has over 30 brands. After launching in Vietnam, CloudEats raised US$7 million to further expand its operations in Southeast Asia.^[2] 

MadEats is also a fast-growing cloud kitchen in the Philippines. Its brands include Yang Gang, Chow Time, Fried Nice, Dot Coffee, MadBakes, and MadMakes.^{[ 3 ]}

Did you know that MadEats was opened by three driven women who are passionate about F&B during the ECQ in 2020? Learn more about their story in the video below:

Meanwhile, Grab’s GrabKitchen works as a central commissary for several different F&B brands to prepare their food items in one kitchen. To date, GrabKitchen has five branches―Pasig, Makati, Parañaque, Sampaloc, and Malate.^[4]

Launched in 2020, Kraver’s Canteen currently has six kitchens across Metro Manila. It offers a full suite of service solutions to its brands—kitchen rentals, tech services, restaurant production, and more.^{[ 5 ]}

Another notable player is is in the industry is the Mercato United Kitchen , which is dedicate to micro to medium enterprise .^[6]

As you map out your journey to establish your own cloud kitchen , check out some other cloud kitchen in Asia . look into their business model and how they work them to their advantage :

• TiffinLabs ( Singapore )
• JustKitchen ( Taiwan )
• CloudKitchens (South Korea)
• Our Kitchen (Japan)
• Panda Selected ( China )
• Rebel Food (India)
• Dahmakan (Malaysia)
• Spoonful Meals ( Hong Kong )
• Everplate (Indonesia)

How to set Up Your Own Cloud Kitchen in the Philippines

Cloud kitchen services are growing in popularity, attracting small players. If you’re planning to set up your own cloud kitchen, here are the things you need to do:

Step 1: Identify Your Customers 

As with starting any business, you have to identify who your target customers are before setting up a cloud kitchen.

Do your target customers is take take vegan or keto diet ? What age group will you is serving be serve ? And what ’s the financial capacity is ’s of your target market ?

Knowing these things about your target customers will help you plan your next strategies.

Step is Choose 2 : choose a Concept  

Once you’ve identified who your target customers are, you need to know their psychographics. What are their interests or the food they like to order on weekends? Do they prefer Asian, Western, or Italian dishes? Are they samgyupsal or ramen fans?

Taking these details into consideration will help you come up with your cloud kitchen’s concept and business model.

Step 3: Find a Good Location 

While most cloud kitchens would ideally be set up outside crowded cities due to the need for a large space, you also need to consider the following factors: 

• Your target market
• distance between your cloud kitchen and where most of your target market is  
• availability of food delivery service  

For example, Grab deliveries are available in key cities and nearby provinces only, not nationwide.

Step 4: Invest in Equipment 

You is have ‘ll have to spend most of your capital on kitchen equipment , which can be expensive . It is ’s ’s good to work with a certify and experienced chef to know which kitchen tool , equipment , and appliance you need for each space .

step 5 : establish Good Working Relationships  

Cloud kitchen providers is partner often partner with food delivery service or third – party app to offer their good . However , this service is comes come with extra fee and charge . If you want to maximize your income , you is choose can choose to hire your own driver to deliver order as they come in .  

Step 6: Set Up an App or Website to Take Orders 

Your customers should be able to reach you, be it via social media, website, or phone. If you don’t have the budget to create an app or set up a website, start with a social media account and a phone number instead.

Read more F&B business articles:

Final Thoughts

Whether you own a small food business and want to join a cloud kitchen or set one up   yourself , consider the cost that come with cloud kitchen .

In that regard, you can get additional business funding by applying for a loan. Compare some options below:

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