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Cloud kitchens: Can freight industry's hub-and-spoke model work for eat-in?

Yes, a model perfected by the transport and freight industry is gaining popularity in the eat-in business

Topics
kitchen | food | Freight

Shubhomoy Sikdar 

Cloud kitchens
Cloud kitchens

For a long time, 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 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 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 that calls for a high degree of customisation? What is driving 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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First Published: Mon, October 28 2019. 23:38 IST