For a long time, food delivery was a hyper local concept in the way it was perceived and managed, as the race was to serve warm food, tweaked to popular (and sometimes individual) preferences in the shortest possible time. But with the cloud kitchen model — that uses analytics to lower overhead costs, optimise real estate and other resources, and improve delivery time — gaining ground, many are hoping things will change for the better. But can a hub-and-spoke distribution model developed to transport passengers and freight and successfully applied to many manufacturing businesses be applied to the service industry? Specifically, will a centralised model of preparation and delivery work in a business like food that calls for a high degree of customisation? What is driving food aggregators like Swiggy and fast-food brands like KFC to jump on to the bandwagon? The answer boils down to one standout factor — cost.
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