THE ACCELERATION OF CLOUD KITCHENS IN THE MIDDLE EAST

BY NAJIB YAACOUB, DIRECTOR OF OPERATIONS – LAVOYA RESTAURANT GROUP

Food delivery is becoming an integral part of a customer’s daily habits due to the convenience, and with the younger generation becoming progressively tech-savvy, ordering food online is more preferrable. At Lavoya, I have seen first-hand the acceleration of cloud kitchens in the Middle East, to meet this demand. To further enhance our brand presence in the region we have launched our first venue in Dubai this June for our leading Lebanese street food concept, Barbar. The Barbar cloud kitchen will be our pilot location and depending on its success, we will expand the concept across the remainder of our portfolio in the coming months. The rationale behind adopting the initiative comes after already establishing flagships stores for each of our three brands. We recognised the ongo- ing demand for delivery service and understood the benefits of expanding our brand operations without a physical dine-in location for customers. Overall, the future of cloud kitchens looks promising. The concept is highly cost-effective as it eliminates the need for expensive real estate, rent, and utilities associated with traditional brick-andmortar restaurants. They are also convenient ways for restaurants and businesses to expand their reach across the region.

Taking this into account, the format does come with certain challenges. Efficient management of operations, from preparing food to the correct handling of deliveries, is crucial and businesses must invest in the right technology and systems to successfully streamline these operations. At Lavoya, we continue to ensure we have the latest technological advancements to competently handle processes, and we are committed to using lowwaste production techniques driven by technology.

The UAE market has seen an increase in its level of digitalisation and popularity of food delivery, making it an ideal market for cloud kitchen expansion. As the concept gains popularity, we have an opportunity to differentiate ourselves by providing a unique, high-quality customer service, however, it is important to note that brick and mortar restaurants continue to thrive due to the irreplaceable experience that encompasses more than just food, including the physical presence and atmosphere a restaurant brings. Physical restaurants provide a multi-sensory experience that cannot be replicated through a screen alone. The ambiance, decor, and overall atmosphere play a significant role in creating a memorable dining experience for customers.

At Lavoya, we recognise the importance of both cloud kitchens and physical restaurants. While cloud kitchens are ideal for customers who prioritise convenience and speed, physical restaurants offer a more immersive experience for those who want to savour their meal in a welcoming atmosphere. Combining the two through a hybrid approach enables businesses to reach a wider range of customers and diversify their offerings. This integrated approach ensures that customers have the freedom to choose the dining experience that suits their needs and preferences at any given time.

For example, a customer might order a meal from a cloud kitchen for lunch when they are short on time, but then choose to visit the physical restaurant for dinner with friends or family to enjoy the ambiance and the full range of menu items. Alternatively, a customer might visit a physical restaurant and then order from the cloud kitchen for takeout on another occasion.

In addition to enhancing the customer experience, a combined approach also offers operational benefits for businesses. By utilising a cloud kitchen, businesses can optimise their operations by fulfilling orders more efficiently, reducing wait times and improving their delivery capabilities. Physical restaurants, on the other hand, offer the opportunity for businesses to create a brand presence and establish a loyal custom base through memorable dining experiences.

The fast-paced lifestyle and growing demand for convenience has also contributed greatly to the popularity of cloud kitchens operating in the region. However, in markets where food delivery services are not as popular, cloud kitchens may face the challenge of gaining acceptance.

In conclusion, the Middle East is witnessing a surge in cloud kitchen adoption, and Lavoya is committed to leveraging this trend to expand our reach and improve our overall operations. However, finding the right balance between cloud kitchens and physical restaurants is crucial in offering customers a comprehensive dining experience. By leveraging appropriate technology, robust systems, and a strategic approach, both cloud kitchens and brick-and-mortar restaurants can co-exist harmoniously and flourish within the Middle Eastern market.