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Hello reader,
Just one year ago, I felt like cloud kitchen startups were a dime a dozen. Whether it was reading the Tech in Asia news page or writing the daily newsletter, it was common to see new cloud kitchens being launched or raising money.
All told, things were looking good – until they weren’t.
Starting this year, I don’t think I can recall reading or writing about any cloud kitchen startup. To be frank, I didn’t even notice this happening, but reading today’s premium story brought everything back.
Now, I’ve got a better understanding of just what happened to the sector – at least in Indonesia.
Today we look at:
- What happened to cloud kitchens in Indonesia
- Khailee Ng’s thoughts on Southeast Asia’s startup ecosystem
- Other newsy highlights such as Sam Bankman-Fried getting convicted and the results of the UK’s AI Safety Summit.
Premium summary
Floating away
Image credit: Timmy Loen
Is there a fundamental problem with the cloud kitchen business model or is it just a case of companies not executing the right strategies? It can be hard to say, and that’s not considering the extremely difficult conditions that startups are dealing with this year. Today’s premium story sheds some light on this question.
- Shutter island: Even major players haven’t been spared. Grab has already closed 48 kitchens in total across Indonesia. Meanwhile, Dapur Bersama GoFood – a joint venture between Gojek and Rebel Foods – shut down its 73 outlets earlier this year.
- Painful fees: The high fees charged by cloud kitchen operators may have discouraged potential tenants. One founder that Tech in Asia Indonesia spoke to mentioned that 30% of each sale made by his startup went to commissions for the kitchen operator.
- Filling the gap: Still, with large players leaving the market, it could become a big opportunity for small cloud kitchen operators.
Read more: Indonesia’s major cloud kitchen chains close shop, but it’s not all doom and gloom
News spotlight
Dive into Southeast Asia with Khailee Ng
Join this year’s SFF on November 15 to 17 at the Singapore Expo
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