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What’s cooking? Cloud kitchens see 'big opportunity' in Indonesia
As Southeast Asia's largest food-delivery market, Indonesia is also a fertile breeding ground for the cloud kitchen business, industry players say.
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A cloud kitchen start-up Hangry outlet. Established in 2019, Hangry currently has 50 cloud kitchen outlets across Jakarta. (Courtesy of Hangry/-)
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loud kitchen businesses have become very bullish over their growth prospects in Indonesia after COVID-19 mobility restrictions triggered a food-delivery boom in the country.
Abraham Viktor, cofounder and chief executive of cloud kitchen company Hangry, said that demand for cloud kitchens, also known as ghost or internet kitchens, would follow demand for food delivery.
“This is an emerging market and a lifestyle that will be more ubiquitous,” Abraham said during a conference hosted by Tech in Asia on Wednesday.
He went on to say that Indonesia's food-delivery market grew at a 50 percent compound annual growth rate (CAGR) over the last five years, significantly higher than the 7 percent CAGR of traditional restaurants.
Over the next five years, the food-delivery market is expected to grow at a 35 percent CAGR to triple its current size.
Mobility restrictions cemented Indonesia's position as the largest food-delivery market in Southeast Asia last year, with the market's gross merchandise value (GMV) at US$3.7 billion, according to venture capital firm Momentum Works.
Read also: Indonesia’s $3.7b food delivery market largest in region
