Last Friday (October 2), Grab launched its second GrabKitchen in Singapore following its first cloud kitchen in Hillview.
Located in Aljunied, it is Grab’s 56th GrabKitchen regionally, making Grab one of the largest operators of cloud kitchen facilities in Southeast Asia.
Spanning 2,971 square feet, GrabKitchen Aljunied features eight kitchens and a small dine-in area.
Similar to the Hillview outfit, GrabKitchen Aljunied will also offer consumers a selection of drinks, as well as dessert and snack options.
It will see a mix of merchant-partners who are new to the cloud kitchen model such as homegrown food chains Putien and Maki-san, Japanese Teishoku brand Yayoi, as well as returning ones who have seen success in their GrabKitchen Hillview venture including Playmade, Wolf Burgers and CarversX.
With every GrabKitchen, a robust data gathering and analysis process guides the selection of the location as well as the merchant mix in order to provide merchant-partners with the right opportunities from the get-go.
Based on consumer insights derived from in-app data usage as well as consumer surveys, the Geylang-Aljunied area saw one of the highest rates of unmet consumer demand amongst GrabFood users in Singapore.
More specifically, Japanese, Korean and Western cuisines, as well as bubble tea and fried chicken saw significantly higher demand from consumers than supply from F&B merchants in the area.
With smaller, home-grown eateries offering a variety of local cuisine dominating the area, there was also the opportunity to bring in popular and established food brands.
Helping F&B Merchants Build Their Digital Businesses
GrabKitchen provides merchant-partners with more opportunities to increase their footprint and test new concepts at lower costs, while offering them with immediate access to Grab’s user base.
This is the first time we are expanding with the sole aim of reaching more consumers through food delivery. In the last few months, we have seen many of our customers, even our regulars, move online and order from us through GrabFood. Even as more consumers are returning to our stores, demand for our menu during weekday meal times still remains high.
We believe this is a trend that will continue to stay for a long time, so we need to also try new ways of serving our consumers. While the cloud kitchen concept is very new to us, we can already see some benefits — such as managing lower overhead costs and having access to insights to what consumers expect from food delivery.Fong Chak Ka, Vice-President of PUTIEN
It also provides merchants with new incremental sales channels through features like mix-and-match where merchants can reach a new segment of customers who do group ordering for their family or friends.
This has become increasingly relevant in the last few months as F&B businesses accelerate their digitalisation efforts and optimise their business structures to meet the rising demand for food delivery services in cost-effective ways.
Besides offering a space to operate, Grab takes care of overall utilities management within the facility, as well as marketing support within the app to reduce the onset business challenges merchants face when they look to set up new outlets or even their first business.
In addition, GrabKitchen’s merchant-partners can tap on Grab’s wide delivery fleet and expand their addressable consumer base with islandwide delivery service.
The launch of GrabKitchen Aljunied is the latest way Grab continues to help its merchant-partners expand their businesses and better serve the needs of their users.
“The pandemic has had F&B players rethink their expansion plans. With sustained consumer demand for food delivery orders, GrabKitchen Aljunied will enable our merchant-partners to grow their footprint and iterate on new concepts while adapting to fast-changing consumers behaviours through our data-first approach,” said Dilip Roussenaly, Senior Director, Deliveries of Grab Singapore.
Featured Image Credit: Grab Singapore