Cloud kitchens closing across Singapore as demand drops among consumers, merchants

DROP IN DEMAND FOR Supply

This change in consumer behavior for Asian fried chicken chain Bonchon caused it to leave the cloud home category.

Although it has its own restaurant locations, there was a clear advantage to using shared kitchens right away. In order to draw in customers who use food delivery services, it occupied room in areas where it had no physical presence.

Bonchon’s income decreased, however, as the pandemic ended and customers stopped using the shipping service for food.

” We observed a decline in supply income, which I believe is related to people returning to dining establishments and meet friends. We also became aware that there were other factors at play, such as prices, that would have caused a lot more people to relocate abroad, according to Bonchon Singapore producer Jefferson Tandamu.

He furthermore cited higher supply income as a hindrance to maintaining their sky home. For example, if the eatery sold fried chicken for S$ 10 ( US$ 7.60 ), about 40 per cent– or S$ 4 – would go to the delivery company.

” We are constantly looking forward to expanding our footprints, our business in Singapore. However, I believe this time due to the downward pressure I’ve mentioned, we are looking to really concentrate on what we do best, namely, to return to strengthening our operations,” Mr. Tandamu said.

Ms. Ho, who is still one of Singapore’s some female smoked meat experts, now has her own, private space where she can spend her free time.

She claimed that the larger area and fewer problems justify the higher rent and staff costs.

” I realised that protection and security is my number one when I’m in this F&amp, B discipline”, she added.