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Kitopi: The Brave New World of Cloud Kitchens

By: Antonio Moreno, Gamze Yucaoglu

The case opens in February 2021 as Mohamad Ballout, co-founder and CEO of Kitopi, a Dubai-based managed cloud kitchen platform, is looking over the company's 2020 results. Propelled by the COVID-19…

• Length: 24 page(s)
• Publication Date: Apr 6, 2021
• Discipline: Operations Management
• Product #: 621102-PDF-ENG

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The case opens in February 2021 as Mohamad Ballout, co-founder and CEO of Kitopi, a Dubai-based managed cloud kitchen platform, is looking over the company's 2020 results. Propelled by the COVID-19 pandemic, delivery orders had been on the rise globally and dine-in restaurants were more than ever focused on profitability. Against this backdrop, Kitopi had seen high traction in its business and the management needed to decide on which growth opportunities to focus. The case provides an overview of the pain points of the various players in the on-demand food ecosystem -the aggregators, the restaurants and the customers- and lays the ground for the nascent cloud kitchen business worldwide complete with the competitive outlook. The case also provides a detailed overview of how Kitopi structured its kitchens, how the company developed proprietary software to track space utilization and efficiency across its operations, and how it built it supply chain capabilities. While the B2B positioning of the company enables Kitopi to help restaurants expand much faster and in a less costly way, the company is mainly invisible to customers who don't know that their food order is coming from a central kitchen. Also, the company has been witnessing the consolidation of aggregators across its markets. The case puts the reader in Ballout's shoes, who wondered if the company could feasibly continue to own the supply side of the business and retain its position as a primarily B2B company without risking being squeezed out by the aggregators, who owned the customer relationship and data. Should the company focus on building on its currently small B2C arms, consider licensing it tech stack, or be squarely focused on its core business?

Learning Objectives

This case provides an opportunity for students to deepen their understanding of: Process analysis and principles of operation: space utilization, efficiency, and throughput in kitchen operations and; Development and implementation of technology in an area that has been run traditionally and where and how it makes a difference; Opportunities and challenges for growth in a nascent sector and how a young company thinks about navigating those.

Apr 6, 2021 (Revised: May 25, 2021)

Discipline:

Operations Management

Geographies:

Africa, Middle East

Industries:

Food and beverage sector

Harvard Business School

621102-PDF-ENG

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Cloud Kitchen: A Profitable Venture

2021, IARJSET

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Kitopi: The Brave New World of Cloud Kitchens

• Format: Print
• | Language: English
• | Pages: 24

About The Author

Antonio Moreno

Related work.

• August 2021
• Faculty Research

Kitopi: Behind the Scenes

• July 2021 (Revised October 2021)
• Kitopi: Behind the Scenes  By: Antonio Moreno and Gamze Yucaoglu
• Kitopi: The Brave New World of Cloud Kitchens  By: Antonio Moreno, Anibha Singh and Gamze Yucaoglu
• Kitopi: The Brave New World of Cloud Kitchens  By: Antonio Moreno and Gamze Yucaoglu

Strategic Analysis of Cloud Kitchen – A Case Study

Nita Choudhary

Jul 1, 2019

Influential Citations

Journal name not available for this finding

Key Takeaway : Cloud kitchens are a promising business model for takeaway food delivery, but must adapt to market changes and competition to remain competitive.

In the era of internet, where generation Y wants most of the facilities ordered on one click, the word ‘Cloud kitchen’ gained momentum. Cloud kitchen works on a hub and spoke model. There is a mega central kitchen (hub) and the food is delivered to the outlets (spokes), from where the food is distributed to the respective customers. A cloud kitchen is a takeaway outlet that does not provide a dine-in facility. Restaurants like Faasos, Box8, Innerchef, Freshmenu, Kabuliwala and Holachef are also exploring the concept of ‘Cloud kitchen’ lucratively. This case study will explore the world of cloud kitchen in terms of business model, marketing strategies and analysis in terms of customer, competitor, market and environment. However, considering the strategic uncertainties, mainly the intensity of competition, cloud kitchen services need to continuously analyse market position, and adapt to market changes with innovative strategies.