Cloud kitchens are disrupting Indonesia’s F&B sector

cloud kitchens
Sign outside a Hangry cloud kitchen outlet in Mekarwangi, Bandung. Image credit: Hangry

Few restaurant trends have been as disruptive as cloud kitchens, where both chefs and home cooks prepare food for delivery via online delivery platforms and even local delivery services – and in Southeast Asia, Indonesia is leading the charge.

Just as Uber and Grab disrupted the transportation industry with their mobile apps, which enables anyone with a car or motorcycle to become a driver, cloud kitchens are disrupting the food and beverage (F&B) industry by allowing anyone with an oven to become a cook and have a brand.

But it’s no fad – in fact, many experts see food delivery becoming pervasive over the coming years.

COVID-19 has signaled this new era in F&B, and Indonesia is leading in the region. Between 2021 and 2028, the cloud kitchen business in Indonesia is expected to expand at a compound annual growth rate of 20.7%, against thriving F&B activity in the country.

In recent years, the number of cloud kitchens in the country has exploded, with notable delivery providers such as Grab‘s GrabKitchen and Gojek‘s GoFood accelerating this trend. Today, popular cloud kitchen players in Indonesia include Hangry, Everplate, Kita Kitchen, and Yummy Corp.

Recently, Yummy Corp, backed by SoftBank, announced its purchase of ordering platform Listee for an undisclosed amount. With this acquisition, Yummy Corp is attempting to build out the culinary business ecosystem and grow its ordering, facility management, and online catering services.

Yummy Corp has been active in its acquisitions and deals over the last year, growing rapidly to become a leader in Indonesia’s cloud kitchen landscape.

According to a study by Indonesian early-stage investor Alpha JWC Ventures, Indonesia’s F&B startups have amassed as much as $644 million between 2020 and 2021, much more than $152 million from Singapore, a distant second.

Alpha JWC Ventures also notes that the F&B scene in Southeast Asia attracted $461 million in venture capital last year, the most in over a decade. This is nearly double the $250 million from 2020, reported by DealStreetAsia’s “Tapping into Indonesia’s F&B Revolution.”

Eko Kurniadi, a partner at Alpha JWC, says that their company is optimistic about Indonesia’s growth in the F&B space, largely driven by tech-savvy millennials and Gen Z. Alpha JWC is particularly interested in Indonesian coffee chain Kopi Kenangan, which became a unicorn late last year after raising $96 million in its Series C round.

“While Indonesia has traditionally been very consumption-driven, with a rising middle-income segment, the tech savvy millennials and Gen Z have acted as an accelerant,” said Kurniadi.

Be the first to comment

What do you think?

This site uses Akismet to reduce spam. Learn how your comment data is processed.