SUPPLY CHAIN EVOLUTION. A STUDY OF OPPORTUNITIES AND CHALLENGES OF VIRTUAL KITCHENS IN MALAYSIA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
SUPPLY CHAIN EVOLUTION. A STUDY OF
OPPORTUNITIES AND CHALLENGES OF VIRTUAL
KITCHENS IN MALAYSIA
Bryan Teoh Phern Chern1, Fauziah Binti Sh. Ahmad2
1
Faculty of Accountancy, Finance and Business, Tunku Abdul Rahman University College, Setapak, Kuala
Lumpur, 53300, Malaysia. & International Business School, Universiti Teknologi Malaysia, Kuala Lumpur,
Wilayah Persekutuan Kuala Lumpur, 54100, Malaysia.
2
International Business School, Universiti Teknologi Malaysia, Kuala Lumpur, Wilayah Persekutuan Kuala
Lumpur, 54100, Malaysia.
teohpc@tarc.edu.my1, fsa@utm.my2
Received: 17 March 2020 Revised and Accepted: 19 June 2020
ABSTRACT: The recent growth of the online food delivery industry in Malaysia is changing the lifestyle of
Malaysians in terms of food consumption and food retailing. However, this dynamic industry is beginning to
evolve in other countries through the use of virtual kitchens. The maturity of online food delivery services has
enabled virtual kitchens to be utilized with the objective of lowering supply chain cost and improving customer
service. As the supply chain evolves, multiple parties will be impacted, such as food delivery aggregators, food
outlets, delivery riders and the consumers. This paper examines the possibility of planting virtual kitchens in
Malaysia and how it would affect the local market. Supply chain evolution requires a high degree of supply
chain collaboration between suppliers, food aggregators, retailers, and the consumers themselves. It also
requires the right timing of implementation. This paper also contributes to the sharing economy literature which
is still lagging in many areas given the infancy of the economy..
KEYWORDS: Supply Chain Evolution, Supply Chain Collaboration; Virtual Kitchen; Dynamic Capabilities;
Sharing Economy
I. INTRODUCTION
The Malaysian food and beverage industry have been experiencing steady growth in the recent years. Recording
growth of 12% annually since 2010, the industry has already exceeded RM66 billion in 2017 (The Star, 2019).
The number of food outlets are also increasing year by year, seeing an 11% growth in 2015 (The Star, 2019).
The rising number of food establishments has also led to an increase in employments, exceeding 890,000
employees as of 2017, which is a growth of 6.7% (The Star, 2019). This industry is a sizeable industry and has
potential to grow further. However, this has contributed to higher competition levels and shrinking profit
margins. With the addition of e-commerce, the competition among food providers have intensified. E-commerce
food sales have posted almost 30% growth in the past year, contributed by food aggregators in the country such
as HelloFresh (Statista, 2020). With the growing competition, food outlets and establishments need to find ways
to stay competitive and relevant. (Nasir & Ahmad, 2015) posted the second highest level of innovation, behind
the electronics industry at first place. Food innovation can include new products, services, processes or
distribution strategies.
Delivering food online is one of the growing trends in the food and beverage industry, especially in urbanized
areas. Traditionally only fast food chains the likes of Pizza Hut or McDonald’s offer widespread delivery
services. Today, many intermediaries, also known as food aggregators, are collaborating with food outlets to
offer food delivery services to consumers. In Malaysia, GrabFood and FoodPanda are the market leaders,
followed by other players such as DeliverEat and HonestBee (EC Insider, 2019). The food aggregators act as
intermediaries between food outlets and consumers, offering an integrated platform with a payment system,
customer service, food delivery and a limited amount of marketing activities (Kedah, Ismail, Haque, & Ahmed,
2015). The online food delivery market has gained a good response from consumers and is expected to grow
around 18% annually these 5 years (Statista, 2020).
Problem Statement
However, this industry is not without its challenges. This industry relies on multiple parties, the aggregator, food
outlet and a delivery rider. Besides the food quality difference between dining in and take-away, food outlets are
concerned about customer loyalty. Consumers might be loyal to the aggregator and act on any promotions
361JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
available rather than develop loyalty towards one outlet. Food outlets are also reliant towards the delivery rider
in terms of customer service. Besides that, food aggregators generally charge around 30% of total revenue,
which might be significant for some food outlets (PYMNTS, 2019). (Haddon & Jaggon, 2019) mentioned that
usually the total amount spent through delivery will be less than the amount the same customer would typically
spend in-store. Furthermore, food outlets would need to pay for extra packaging for delivery purposes.
Collectively, the decision on whether to use aggregator services might be debatable. The current supply chain
model might not be applicable in the long run if restaurants do not see actual results resulting from the
collaboration effort. Hence, this supply chain model needs to evolve to enable each party to operate at a
mutually beneficial business environment.
In terms of existing literature, there is still a lack of adequate explanation and references as this is still an
upcoming industry. The dynamic nature of this industry has made it even more challenging to source for
relevant literature. This paper will attempt to review the existing literature, and then examine the feasibility of
implementing virtual kitchens to alleviate the current issues faced in the online food delivery industry.
II. LITERATURE REVIEW
Sharing Economy
The sharing economy can be defined as the idea of sharing and utilizing excess resources, typically coordinated
on an online integrated platform (Hamari, Sjoklint, & Ukonnen, 2016). Some of the bigger players in this
economy include Uber and Lyft in the transportation space, while Airbnb operates in the hospitality space, and
Wework in the commercial real estate industry (Segaran, 2017). The sharing economy can generate economic
impact as excess assets are shared instead of being left idle. It can also generate a social impact as social
interaction is necessary to share said resources. Finally, the sharing economy can have an environmental impact
as resources that harm the environment such as petrol vehicles are now being shared (Neuburger, 2019).
The online food delivery market operates in this economy as well. They are typically being operated by a food
aggregator, which brings food from food outlets to end consumers via a pool of delivery riders. These delivery
riders are not full-time employees but rather work on an on-demand basis using their private vehicles, usually a
motorcycle or bicycles in some countries. This allows motorcycle owners to earn extra income during their free
time, while also utilizing their motorcycles more effectively (Rahim, 2019).
Supply chain collaboration is essential in this economy as there are multiple parties involved in fulfilling each
customer order. Through jointly managing each supply chain function, the supply chain entities can be rewarded
holistically and individually (Mentzer, Foggin, & Golicic, 2000). Since each party contributes directly to order
fulfilment, this paper will focus on the entire supply chain as opposed to the aggregator business strategy and
model or the food outlet business model. Each party need to agree on the associated risk and rewards for the
collaboration to be effective. Therefore, this paper will attempt to reassess the existing system and propose a
spinoff to lower the risks and increase potential profits for all the parties involved.
Dynamic Capabilities
The resource-based view (RBV) states that a certain collection of assets and capabilities can lead to a
competitive advantage (Teece, Pisano, & Shuen, 1997). However, Dynamic Capabilities view this as a
temporary advantage, and that organizations need to possess dynamic capabilities to have sustained competitive
advantages over other players in the industry. It can be defined as an organization’s ability to engage in various
types of change to adapt to the marketplace (Nadkarni & Narayanan, 2007).
(Velu, 2017) elaborated on three key elements of Dynamic Capabilities that is essential for the congruence
between a business model and delivering the right value proposition. The first element is balanced redundancy,
which is the extent to which resources in a firm are overlapping, where different segments can perform each
other’s functions. Although redundancy might cost more in the short run, this allows the system to evolve better
and as one entity. It also minimizes shocks to the company and increases resilience (Kafri, Springer, & Pilpel,
2009).
Another key element is requisite variety, which means that members of the organization can obtain relevant
information for a variety of different sources to better understand changes in the market environment (Velu,
2017). The increased sensing capabilities allow opportunities in the market to be seized quickly and effectively.
Finally, cognitive discretion represents the ability to use both deductive and inductive reasoning. This allows for
the use of analogical reasoning to identify opportunities, while making sure that the new model is congruent
with market requirements (Velu, 2017).
Opportunity Discovery Theory
The Opportunity Discovery Theory (ODT) exist when opportunities already exist in the market, where
entrepreneurs or established firms can identify and exploit said opportunities (Alvarez & Barney, 2007). This
362JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
differs from Opportunity Creation Theory (OCT), where there are no opportunities in the market waiting to be
recognized but is created through actions by entrepreneurs (Alvarez & Barney, 2007). ODT requires
entrepreneurs to actively seek for solutions to solve existing issues, while the potential outcomes and
probabilities are completely unknown with OCT. The online food delivery market is already a mature market in
countries like China, India and USA, there are many existing solutions that can be used as references to solve
issues faced in Malaysia. Hence, this paper will use ODT to seek for existing solutions in other markets that can
potentially minimize the weaknesses of the Malaysian online food delivery market. The opportunity that this
paper will study is the use of virtual kitchens in Malaysia to increase the overall effectiveness and efficiencies in
the online food delivery market.
Virtual Kitchens
Virtual kitchens are essentially delivery-only kitchens, that do not serve customers in-house, but is a premise
where food is prepared and delivered directly to the end consumer (Roy, 2020). As the online food delivery
industry evolves, one of the supply chain trends include utilizing virtual kitchens, sometimes known as ghost
kitchens or cloud kitchens (Patton, 2019). Swiggy, one of the success stories in India has established 1,000
virtual kitchens in India across 14 cities as of November 2019 (Singh, 2019). Uber’s former CEO Travis
Kalanick has established CloudKitchens, while Kitchens United has been backed by Google Ventures, both
operating in the United States (Canales, 2019). These are just a few out of many examples of companies
venturing into this industry as well as the funding flowing into these companies. Many firms believe that virtual
kitchens are the next step for the online food delivery industry as the supply chain evolves (Roy, 2020).
There are currently a few types of virtual kitchens operating in the market. One of them is the independent cloud
kitchen model, which is operated by one company, selling products of one single brand in one kitchen and with
no storefront for customer takeaway or dining in (Maggo, 2020). DahMakan in Malaysia operates this model,
where customers can only order online, and their own delivery fleet will deliver the food at fixed time slots.
Virtual kitchens can also use one single kitchen to sell multiple cuisines from multiple brands. Rebel Foods use
this model to keep operation cost low because each brand serving their respective cuisines can cater to their own
group of customers while sharing one kitchen (Maggo, 2020). However, they are typically owned by the same
mother brand. Some companies offer both online food deliveries while providing a storefront for take-away
customers, such as Domino’s Pizza (Maggo, 2020). This also allow customers to see how their food is being
prepared. In India, Swiggy’s model is slightly different as they act as an aggregator, renting out co-working
kitchens to multiple restaurant brands without having a storefront (Maggo, 2020). The aggregator typically
provides a functional kitchen, an online ordering platform and delivery services. This model allows business
owners to focus on their core competencies, which is food preparation. The same business model can be altered
to have a storefront for customers to walk-in and order or collect food, such as The Hatchery in Chicago where
they also act as incubators for new chefs (The Hatchery, 2020).
For high traffic areas like London’s high street, is it difficult to find new locations to open new stores. Even if
there were, rental rates might be too high for new startups (Malay Mail, 2019). Virtual kitchens can benefit such
food outlets because they do not need to be in high traffic areas to attract the crowd. Such establishments can
look for a nearby location with lower rental rates and higher availabilities. On the other hand, this phenomenon
can boost the economy of real estate prices in lower demand areas (Malay Mail, 2019).
Furthermore, restaurants or established food outlets that want to expand their brand to other locations at a lower
cost can opt for virtual kitchens as well. Without investing in a brick-and-mortar store, they can add a physical
presence in a certain location (Malay Mail, 2019). Brands such as Chick-fil-A, Wendy’s and The Halal Guys
have also invested in virtual kitchens in areas with projected high delivery sales or areas with high real estate
costs (Taylor, 2019).
Generally, virtual kitchens reduce the pressure placed on the food outlet because it warrants less expenditure in
terms of capital investment, labour, rental, and even dishwashing (Hennessy, 2020). Food establishments can
also rent a co-kitchen space during seasonal peaks to cater to demand that their existing kitchens cannot support.
Frato’s Pizza in New York which already has its own food outlet has also installed a virtual kitchen in its
existing restaurant. From the outside it still looks like a basic Frato’s Pizza outlet, but the kitchen insources
other brands to use their kitchen and labor to serve their respective customers (Olson, 2019). Virtual kitchens
also reduce the cost of compliance as restaurants that serve customers may require other health and fire
compliance on top of the kitchen compliance and licensing fees (Cheema, 2020).
Another advantage of a virtual kitchen is that it is easily scalable in the future. If the first virtual kitchen sees
success, the company can use the same concept in another carefully selected location, together with all the other
restaurant partners, if any (Pancal, 2020). This allows the partners, such as other brands, to expand their
business to other locations as well.
363JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
However, there have been some challenges being identified in this early stage of the industry. The low operating
costs lower down the barriers of entry and may increase competition, even between brands in the same kitchen.
In the long run, there might be low business sustainability (Cheema, 2020).
Since virtual kitchens are delivery-only establishments, they need to invest in their own delivery fleet or risk
being too dependent on third-party delivery companies such as Uber and Grab (Cheema, 2020). They have no
revenue from dine-in or walk-in customers and might be susceptible to high commission rates by delivery
companies.
Besides, companies need to carefully weigh the risk and rewards of engaging in the use of virtual kitchens. The
concept might sound simple compared to conventional models of food outlets, but staff training, brand
management, packaging and delivery-only menus need to be reconsidered (Olson, 2019). It is more difficult to
manage their brand since most of the customer engagement is done through a third party, such as marketing,
order placing and fulfilment, payment and delivery.
Another disadvantage for virtual kitchen owners is that tenants renting a kitchen space can easily switch to
another virtual kitchen for reasons such as lower rent or any form of workplace conflict. The switching cost is
relatively low compared to brick-and-mortar shops (Crichton, 2019). Besides, it is also difficult because
customers might be loyal to a certain brand, not just a type of cuisine. Hence, if the tenant moves to another
virtual kitchen, so does the customers (Crichton, 2019).
Virtual kitchens have started to pop up in South East Asian countries as well, such as Indonesia, Singapore and
Malaysia (Kaushik, 2019). Hence the following section will examine the feasibility of having virtual kitchens in
Malaysia.
Conceptual Framework
Fig 1 Adapted from (Ojala, 2016).
As the existing supply chain model is running, external factors such as technological advancements or market
requirements will change. According to the Opportunity Discovery Theory, supply chain entities need to
reassesses their supply chain model according to the market changes, or anticipate the upcoming changes. The
reassessment process will enable the development of a new supply chain model, which will be accelerated and
more effective with requisite variety, balanced redundancy, and cognitive discretion. After that, the new supply
chain model with new products, services or value delivery strategies will be executed. Successful supply chains
should adopt an ongoing cycle to remain relevant and competitive in the market. The conceptual framework
above was originally assessing business models, but for the purpose of assessing the sharing economy, adjusting
one business model of one supply chain entity is not sufficient for effective change. Hence, the model was
amended to reflect supply chain evolution. Virtual kitchens are a product of the evolution in the online food
delivery market (Kaushik, 2019). As the online food delivery market continues to grow and evolve, supply
chains need to evolve accordingly.
III. MANAGERIAL IMPLICATIONS
South East Asian countries (ASEAN) have also bred some prominent virtual kitchens. Grain, based in
Singapore, have achieved profitability after a mere 4 years upon establishment in 2014. DahMakan, based in
Malaysia is already planning to expand to neighboring countries such as Indonesia and Thailand (Kaushik,
2019). The online food delivery market in ASEAN is projected to quadruple from 2018 to 2025 into an RM32
364JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
billion market (Kaushik, 2019). This projection gives interest to many venture capitalists due to the good growth
potential. For example, Rebel Foods plan to open 100 virtual kitchens across Indonesia by 2021 (Kaushik,
2019). Many companies want to take advantage of this trend. Hence, this can be a good opportunity for many
businesses and supply chains to evolve according to the market requirements. Evolving into or starting up a
virtual kitchen can be one of the methods to do so. DahMakan markets healthy food options and is operating in a
relatively niche market due to the limited menu variety. But compared to brick-and-mortar stores selling similar
items, the establishment managed to cut down 30% of operating cost while adding delivery services and
maintain food quality (Hasnan, 2020).
Grab has built 10 virtual kitchens in Indonesia and is 100% focused on food delivery (Chan, 2019).
GrabKitchen, their virtual kitchen subsidiary scans the country where there is a gap between demand and supply
in terms of the availability of food variety. The kitchens from GrabKitchen can host 8-15 merchants/tenants
each at the same time. GrabKitchen is fully furnished and merchants only need to focus on food preparation.
GrabKitchen even support the merchants to promote their products. Since Grab is in the ride-hailing business
and food delivery market, it is easier for them to integrate this into their existing business model. They have an
advantage as they operate the food delivery internally and will not be exposed to high commission rates by third
party delivery companies (Chan, 2019). Grab is also planning to scale this business model in Malaysia. This is a
positive sign that there is potential for this model in Malaysia.
According to (Roy, 2020), the virtual kitchen concept is still new and evolving irrespective of their current state,
but the core of any model should still be customer experience. Through online food delivery, there is less direct
contact between the brand and the consumer, but the whole experience from the perspective of the customer
need to be taken into consideration. The customer experience in every location differs in different aspects and
needs to be analyzed carefully before rolling out a supply chain model. LetsVenture founder Shanti Mohan
emphasized that food offerings need to be localized to be sustainable. Customers enjoy foreign brands or
established food chains, but this is most probably not their lifestyle. Majority of meals are still localized meals.
This presents an opportunity for companies and supply chains to move into this industry, or for current players
to expand their product offerings.
Every country has different characteristics that differ them from each other. For India, there is fragmentation,
low delivery cost and lack of brand penetration. This has allowed virtual kitchens such as Swiggy and Zomato to
scale their business quickly throughout the country (Roy, 2020). For Malaysia to implement this, there must be
certain enablers as well.
Timing of implementation is essential as this market is considered a complex market in Malaysia (Axelson &
Bjurstrom, 2019). The online food delivery market in Malaysia, like cashless payments in Malaysia is still not
fully appreciated by consumers. As customer demand is developing, supply chain relations, organizational
competence and customer relations need to be examined continuously before a workable value proposition can
be launched. If supply chains can identify the right timing to enter the market with their evolved supply chain
model, risks can be minimized while opportunities are maximized. Currently food aggregators such as Grabfood
and Foodpanda are aggressively attracting customers to adopt the food delivery lifestyle. Hence this might be a
good time to develop virtual kitchens, and then launch them just as online food delivery matures.
There are a few reasons why the Malaysian market is ready for virtual kitchens. There are many areas with
rising real estate prices, especially urbanized areas such as Kuala Lumpur and Petaling Jaya (Kumar, 2019). For
example, a typical outlet around 1,800 square feet can cost around RM7,500 per month (iMoney, 2020). High
real estate price can be a reason for food outlet owners to operate in cloud kitchens and serve customers through
delivery instead of coming up with an initial investment capital to book a storefront in a prime real estate region.
In addition, traffic conditions are usually bad in these areas especially during peak hours, which further
promotes the use of online food delivery services.
The food and beverage industry in Malaysia is already a very competitive industry. However, cloud kitchens can
serve consumers that traditional food outlets are unable to serve. This expands the food and beverage retail
market and the cloud kitchen concept is not directly taking away market share from traditional outlets, creating a
win-win scenario as customers generally spend more and eat out more often (Kumar, 2019). In addition, cloud
kitchens can save on advertising cost because it is more appropriate for online companies to advertise through
social media instead of physical billboards in prime locations, and social media advertising is relatively cheap in
Malaysia (Kumar, 2019).
(JLL, 2019) mentioned that the market is very bullish towards virtual kitchens, but the chances are that larger
and more established firms with the financial ability will capitalize on this opportunity and can do it more
effectively compared to individual virtual kitchens. For example, in Malaysia, Grab has already signaled to the
media that they intend to expand GrabKitchen to Malaysia soon. Since such companies already have an
365JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
established network in the country, it is easier for them to scale their business if they are interested (Straits
Times, 2019). It is also less costly for companies such as Grab and Foodpanda because they have their own
delivery fleet and can eliminate the commission.
Another possible version of a virtual kitchen that can be executed in Malaysia is the use of home kitchens. This
has been done in India where companies such as Curryful and Homefoodi have worked with mainly Indian
women to prepare food from their home kitchen and delivery it directly to consumers using a third-party
delivery company (Manve, 2020). This can be executed in Malaysia as well. Malaysia has a large disparity
between male and female percentages in the workforce. As of 2018, male workers represent an 80%
participation rate compared to women participation rate of 54%. One of the government initiatives is to increase
this rate to 59% by 2020 (IMF, 2018). Hence, encouraging housewives to engage in this business model can aid
in achieving that percentage. Generally, the women will go through simple business planning courses, food
preparation training, sanitization, packaging, cooking and preparation time training before they start selling on
the platform (Manve, 2020). However, regulation in this industry might be a barrier for the growth of this plan
because houses are not allowed to conduct business activities.
Having virtual kitchens increases the food variety found on existing food aggregator apps such as Grabfood and
Foodpanda. The lower barriers to entry encourage smaller food owners to offer their products to end consumers,
which expands the online food delivery market. Currently, most of the collaborations with food aggregators are
well-known brands where consumers might have already heard of the brand before. The online food delivery
only provides them an option to eat the same food at home instead of travelling to that outlet to eat. Virtual
kitchens allow for local food products to be offered. In this case, the brand is not prioritized, but the product
offering is further localized an expanded. For example, consumers may not visit famous restaurants every time
they eat out. Sometimes they might just be looking for a type of food rather than a specific brand. Virtual
kitchens can offer this to the consumer as they can hire chefs to cook each cuisine in a co-kitchen space. This
supports the point mentioned in the previous section indicating that the offered products need to be localized for
the business to be sustainable.
IV. CONCLUSION
Many scholars have addressed that the effectiveness of BMI can depend on the type of industry a company
operates in. The dynamic yet competitive food industry in Kuala Lumpur is one of those industries where
adequate innovative activities and collaborative activities can benefit the companies. The Dynamic Capabilities
Theory can be applied in this scenario as different cuisines and lifestyles penetrate this multi-cultural society. At
this stage, companies must adapt to customer lifestyles as the dining trend slants towards home-delivery and
office-delivery. However, food outlets need to ensure profitability is accounted for throughout the process of
innovating the business model. Hence, engaging in third party collaboration can be a viable alternative.
There were certain limitations in this study. The data might be different from other cities in Malaysia, such as
cities with lesser cultural diversification or cities with older populations. Besides, further complexity can be
used in this study to gain a more detailed picture of the market. As this market is relatively new and is still
growing, there are many areas to be researched, such as rider/employee sustainability, customer perceptions and
management changes.
V. REFERENCES
[1] Alvarez, S. A., & Barney, J. B. (2007). Discovery and creation: alternative theories of entrepreneurial
action. Strategic Entrepreneurial Joural , 11-26.
[2] Axelson, M., & Bjurstrom, E. (2019). The Role of Timing in the Business Model Evolution of Spinoffs:
The Case of C3 Technologies. Research Technology Management, 19-26.
[3] Canales, K. (2019, November 1). Travis Kalanick just announced he’s leaving Uber’s board to focus on
his business pursuits. Here’s a look at his secret ‘ghost kitchen’ startup that’s backed by $400 million
from Saudi Arabia. Retrieved from Business Insider: https://www.businessinsider.my/cloud-kitchens-
travis-kalanick-san-francisco-location-address-pictures-2019-11/?r=US&IR=T
[4] Chan, V. (2019, January 27). GrabKitchen: Grab's cloud kitchen concept dissected. Retrieved from
Vernon Chan: https://vernonchan.com/what-is-grab-cloud-kitchen-concept/
[5] Cheema, K. (2020, January 27). With food delivery startups backing cloud kitchens, do restaurants stand
a chance? Retrieved from INC 42: https://inc42.com/features/with-food-delivery-apps-backing-cloud-
kitchens-do-restaurants-stand-a-chance/
[6] Crichton, D. (2019, October 17). Cloud kitchens is an oxymoron. Retrieved from Tech Crunch:
https://techcrunch.com/2019/10/17/cloud-kitchens-is-an-oxymoron/
[7] EC Insider. (2019, May 20). The food delivery battle has just begun in Malaysia. Retrieved from EC
Insider: https://www.ecinsider.my/2018/02/food-delivery-companies-malaysia.html
366JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
[8] Haddon, H., & Jaggon, J. (2019, March 12). As Food-Delivery Firms Court Smaller Markets, New
Hurdles Emerge. Retrieved from Wall Street Journal: https://www.wsj.com/articles/food-delivery-
companies-acquire-a-taste-for-smaller-markets-11552383000
[9] Hamari, J., Sjoklint, M., & Ukonnen, A. (2016). The sharing economy: why people participate in
collaborative consumption. Journal of The Association for Information Science and Technology, 2047-
2059.
[10] Hasnan, L. (2020, January 27). Cloud kitchens serving healthier options. Retrieved from The ASEAN
Post: https://theaseanpost.com/article/cloud-kitchens-serving-healthy-options
[11] Hennessy. (2020, January 26). Are ghost kitchens the future? Retrieved from QSR Magazine:
https://www.qsrmagazine.com/technology/are-ghost-kitchens-future
[12] IMF. (2018, April 2). Chart of the week, Malaysia needs more women in the workforce. Retrieved from
IMF blog: https://blogs.imf.org/2018/04/02/chart-of-the-week-malaysia-needs-more-women-in-the-
workforce/
[13] iMoney. (2020, January 28). The real cost of starting a business. Retrieved from iMoney:
https://www.imoney.my/articles/the-real-cost-of-starting-a-business
[14] JLL. (2019, January 28). Cloud kitchens heat up in Asia Pacific. Retrieved from JLL:
https://www.jll.co.th/en/trends-and-insights/cities/cloud-kitchens-heat-up-as-food-delivery-booms
[15] Kafri, R., Springer, M., & Pilpel, Y. (2009). Genetic redundancy: new tricks for old genes. . Cell , 389-
392.
[16] Kaushik, P. (2019, October 1). Clear skies for cloud kitchens in the ASEAN region? Retrieved from
ASEAN Today: https://www.aseantoday.com/2019/10/clear-skies-for-cloud-kitchens-in-the-asean-region
[17] Kedah, Z., Ismail, Y., Haque, A. K., & Ahmed, S. (2015). Key success factors of online food ordering
services: an empirical study. Malaysian MAnagement Review, 19-36.
[18] Kumar, P. C. (2019, May 11). Malaysian property market: wake up and smell the coffee. Retrieved from
The Star: https://www.thestar.com.my/business/business-news/2019/05/11/malaysian-property-market-
wake-up-and-smell-the-coffee
[19] Maggo, N. (2020, January 25). The 6 cloud kitchens business models and how they work. Retrieved from
Limetray: https:// limetray.com/blog/cloud-kitchen-business-model/
[20] Malay Mail. (2019, October 8). New on the menu: could dark kitchens gobble up Britain's high street
restaurants. Retrieved from Malay Mail: https://www.malaymail.com/news/eat-drink/2019/10/08/new-
on-the-menu-could-dark-kitchens-gobble-up-britains-high-street-restaura/1798172
[21] Manve, V. (2020, January 28). India's gig economy chef turn their homes into cloud kitchens. Retrieved
from Arab News: https://www.arabnews.com/node/1618096/business-economy
[22] Mentzer, J. T., Foggin, J. H., & Golicic, S. L. (2000). Collaboration: the enablers, impediments, and
benefits. Supply Chain Management Review, 52-58.
[23] Nadkarni, S., & Narayanan, V. K. (2007). Strategic schemas, strategic flexibility, and firm performance:
the moderating role of industry clockspeed. Strategic Management Journal, 243-270.
[24] Nasir, Z. S., & Ahmad, H. (2015). Innovation in Malaysia food and beverage manufacturing SME.
International Journal of Management Research, 604-612.
[25] Neuburger, H. (2019, February 2). The ever-growing sharing economy: Pros and cons. Retrieved from
EU Startups: https://www.eu-startups.com/2019/02/the-ever-growing-sharing-economy-pros-and-cons/
[26] Ojala, A. (2016). Business models and opportunity creation: How IT entrepreneurs create and develop
business models under uncertainty. Information Systems Journal, 451-476.
[27] Olson, A. (2019, October 21). The rise of ghost kitchens: Here's what the online food ordeing boom has
produced. Retrieved from USA Today: https://www.usatoday.com/story/tech/2019/10/21/ ghost-kitchen-
virtual-restaurant-heres-how-works/405 3659002/
[28] Pancal, M. (2020, January 26). Is cloud kitchen a new future of food industry. Retrieved from Your
Story: https://yourstory.com /mystory/cloud-kitchen-new-future-food-industry
[29] Patton, L. (2019, May 16). Ghost kitchens give chefs the speed to feed the delivery beast. Retrieved from
The Star: https://www.thestar.com.my/tech/tech-news/2019/05/16/ghost-kitchens-give-chefs-the-speed-
to-feed-the-delivery-beast
[30] PYMNTS. (2019, July 2). How restaurants can one-up the aggregators. Retrieved from PYMNTS:
https://www.pymnts.com/news/delivery/2019/restaurant-aggregator-digital-food-order-marketplace
[31] Rahim, S. (2019, October 2). Foodpanda says new regional payment scheme rewards efficienct riders.
Retrieved from New Straits Times: https://www.nst.com.my/news/nation/2019/10/527726/foodpand a-
says-new-regional-payment-scheme-rewards-efficient-riders
[32] Roy, D. (2020, January 25). Bright side of cloud kitches. Retrieved from Entrepreneur:
https://www.entrepreneur.com/article/344849, viewed 25 January 2020
367JOURNAL OF CRITICAL REVIEWS
ISSN- 2394-5125 VOL 7, ISSUE 16, 2020
[33] Segaran, R. (2017). The sharing economy. Malaysia Digital Economy Corporation, Kuala Lumpur.
[34] Singh, M. (2019, November 19). India's Swiggy bets big on cloud kitchens. Retrieved from Tech Crunch:
https://techcrunch.com/2019/11/19/swiggy-cloud-kitchen-india/
[35] Statista. (2020, January 22). Food and beverages. Retrieved from Statista:
https://www.statista.com/outlook/253/122/food-beverages/malaysia
[36] Statista. (2020, January 22). Online food delivery. Retrieved from Statista:
https://www.statista.com/outlook/374/122/online-food-delivery/malaysia
[37] Straits Times. (2019, January 28). Rebel Foods, Gojek to open 100 Indonesian cloud kitchens. Retrieved
from Straits Times: https://www.straitstimes.com/business/companies-markets/rebel-foods-gojek-to-
open-100-indonesian-cloud-kitchens
[38] Taylor, K. (2019, October 1). Ghost kitchens are taking over fast food chains from Chick-fil-A to
Wendy's. Retrieved from Business Insider: https://www.businessinsider.my/chick-fil-a-wendys-ghost-
kitchens-growth-2019-10/
[39] Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic
Management Journal, 509-533.
[40] The Hatchery. (2020, January 25). Who we are. Retrieved from The Hatchery:
https://thehatcherychicago.org/who-we-are/
[41] The Star. (2019, May 20). Malaysia's F&B shows steady growth . Retrieved from The Star:
https://www.thestar.com.my/business/business-news/2017/08/30/malaysia-food-and-beverage-sector-
shows-steady-growth/
[42] Velu, C. (2017). A systems perspective on business model evolution: The case of an agricultural
information service provider in India. Cambridge Service Alliance.
368You can also read
