Cloud Kitchens: When Restaurants Go Virtual
The term "cloud kitchen," also known as a ghost or virtual kitchen, refers to a restaurant model that operates without a dine-in space, focusing solely on preparing food for delivery. Customers place orders through the restaurant's app, social media channels, or third-party delivery platforms such as Grab, ShopeeFood, and GoFood.
Cloud kitchens offer flexibility by eliminating the need for expensive real estate, equipment, and maintenance. However, this model often relies on a centralized data processing system (usually managed by a third party) to streamline menu management, order processing, delivery logistics, and integration with payment gateways like e-wallets and internet banking.
The explosion of online food delivery and evolving consumer habits have propelled the popularity of cloud kitchens worldwide.
According to Allied Market Research, the global cloud kitchen market is valued at $44.9 billion in 2023, and it's projected to grow to $154.9 billion by 2035. This trend is evident across Southeast Asia, with great adoption in Indonesia (GoFood's cloud kitchen, Dapur Bersama, operates 73 branches across 12 cities), the Philippines (startup CloudEats expanded into Vietnam in 2022), and Malaysia (Pop Meals).
In Vietnam, while the cloud kitchen model is still in its infancy, it offers huge promise. Companies like CloudEats, Air Kitchen, Deliany, Révi Coffee & Tea, QUOC YEN CLOUD KITCHEN, and Cyber Kitchen have begun to invest heavily in this space since 2023.
Tony Nguyen, CEO of CloudEats Vietnam, notes the industry's challenges, stating, "Currently, no system can handle both offline and online delivery orders from multiple apps such as Grab, ShopeeFood, and GoFood on a single device. This gap highlights opportunities for further development in the food delivery market, despite its rapid growth."
From Café to Culinary: Coffee Chains Making A Dining Leap
A popular emerging trend in Vietnam’s F&B industry is the café-restaurant hybrid, where coffee chains diversify into full-service dining. Traditionally, food courts have been the go-to for diners seeking a variety of food options in one space. However, these environments often feel rushed, with little emphasis on improving the dining experience.
As Vietnam's middle class grows and remote working becomes more common, there’s growing demand for spaces that offer not just quality food and drinks but also a relaxed, experience-driven atmosphere.
Recognizing this trend, The Coffee House opened its SIGNATURE by The Coffee House at the beginning of 2023. The location combines high-end coffee with a fusion-style meal, catering to digital nomads who want to work, dine, and relax all in the same place.
Trung Nguyen Legend, another prominent player in the coffee industry, has also embraced this café-restaurant hybrid model. While its execution is only evident in the Chinese market, Trung Nguyen Legend serves Vietnamese specialties such as spring rolls, pho, banh mi, and grilled chicken with sticky rice, to expose Vietnamese food to a wider audience while maintaining coffee as the brand's cornerstone.
From Farm Fresh to Table Ready
The simplest example of "Farm to Table" is when your family grows a vegetable garden and enjoys freshly harvested produce.
Farm-to-Table, a movement that promotes sustainability, transparency, and fresh, locally produced ingredients, is gaining popularity in Vietnam. This model connects diners directly with the source of their food, often bypassing intermediaries to ensure the freshest and most nutritious ingredients are used.
Restaurants that adopt Farm-to-Table techniques typically grow their own produce or work closely with local farmers, resulting in a more transparent and ethical supply chain.
Restaurants and producers can save money by reducing the number of intermediaries involved in their day-to-day operations, including logistics and storage. Farmers and fishermen enjoy stable demand for their products, while restaurants are assured of consistently high-quality ingredients.
However, running a Farm-to-Table restaurant requires a strong understanding of environmental conditions, agriculture, and supply chain management. Operators must work closely with farmers and anticipate potential disruptions like seasonal shortages and the impact of transportation on food quality.
Pizza 4P's in Vietnam is a familiar player in the Farm-to-Table movement, serving in-house cheeses such as Burrata, Mozzarella, and Ricotta. The brand is also sourced from responsible aquaculture operations and local farms, such as Thien Sinh in Da Lat, Vietnam, in keeping with 4P's sustainable philosophy.
Translated by Thúy An
Flavors Vietnam 2024, a partnership between Vietcetera and Mastercard, is a five-month long celebration of Vietnam's F&B scene. An annual occurrence since 2018, this year's theme is focused on “Crafting shared culinary experiences.”
Part of Flavors Vietnam 2024, Flavors Conference 2024 themed “Building a Resilient and Thriving F&B Industry in Vietnam” is a one-day event, bringing together F&B experts and communities to celebrate and elevate the Vietnamese F&B industry.
Place: New World Saigon Hotel, 76 Le Lai St., Dist. 1, HCMC
Date: 9:00 - 16:00, Wednesday, September 18th, 2024.
For more details and to register for the event, visit website or contact us at @events.rsvp@vietcetera.com.
Special thanks to our sponsors and partners of Flavors Conference 2024: Title Sponsor (Mastercard), Major Sponsor (Diageo - Owner of Johnnie Walker, Tanqueray and Don Julio), Venue Sponsor (New World Saigon Hotel), Partner Sponsor (Nestle Professional and Tân Nhất Hương), Travel Partner (Be), Communications Partner (Vero Asean), Content Curator (Kamereo Vietnam) and Creative Partner (InSpace-Creative).
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Please do not share with those under legal drinking age.