SG’s cloud kitchens, gone with the wind

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Hello reader,

One quote from today’s premium article about Singapore’s cloud kitchen decline stood out for me:

“For staff working in such a small environment and only dealing with orders coming through, the experience is not as rewarding … it was difficult for us to boost the morale of the chef and maintain motivation to work in such a transactional environment,” says Walter Visioli, general manager for Italian restaurant Garibaldi.

It’s a reminder that, even in the “efficiency is king” tech world, all of what we do is for human beings. As we build our solutions (or, in Tech in Asia’s case, write about them), don’t forget to take a step back sometimes and remind yourself of the bigger picture.

Big names like Grab and Deliveroo have exited Singapore’s cloud kitchen space but other players remain. Read on to get the full story.

Today we look at:

• The foggy future of cloud kitchens in Singapore
• OpenAI’s plans to establish an office in Singapore
• Other newsy highlights such as X coming back in Brazil and Shein scoring big bucks from Britain

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Premium summary

Cloudy with a chance of meatballs

I remember the first time I came across a cloud kitchen facility. I just happened to pass by, and even though I knew about the concept, it was still odd to see, hear, and smell all the cooking going on without there being any diners.

I mean, I know that’s the point, but removing a big chunk of the human element from dining still felt weird to me.

To be fair, it makes business sense, so I’m not really criticizing cloud kitchens or anything like that. But it appears the concept’s viability isn’t as strong as it once seemed.

• Delivery, riding into the sunset: On August 20, Deliveroo shut its last two cloud kitchens in Singapore, citing high operational costs and waning demand from restaurants. Grab had closed its last cloud kitchen in Hillview in early 2024, while Foodpanda shuttered its two cloud kitchens in mid-2022.
• Tenants, moving out: F&B operators that have tried and left cloud kitchens include bubble tea brand Playmade and Italian restaurant Garibaldi. Playmade left because of the high costs that the model entails, while Garibaldi left due to the limited upsell opportunities in cloud kitchens.
• Dedicated operators, remaining and growing: Dedicated cloud kitchen operators like Smart City Kitchens and The Social Kitchen are still around. Both have plans to expand amid rising order values and volumes.

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Welcome to Singapore

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Double the electronics exhibitions in Hong Kong, double the productivity

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