This research paper aims to study the business opportunities with respect to cloud kitchens. Cloud kitchens is a new form of food service which can be a natural expansion of new business units following the rise of food delivery applications like LINE-MAN, Grab Food and Foodpanda. Statista reported an estimated 249M of revenue generated from online food delivery applications in 2020. My belief is that the actual number far outweighs the initial estimates due to the onset of COVID-19 and the shift in consumer behaviour favouring food delivery on demand to minimize risk of exposure to the virus and with the added convenience of not having to leave your house or apartment. The acceleration of technology due to COVID-19 has meant that the speed with which players in the market are keen to adopt cloud kitchens has been rapidly accelerated in 2020 and 2021.
This paper recommends relevant marketing strategy based on qualitative and quantitative research conducted. The online food delivery industry has shown immense growth potential in the ASEAN region along with the rise of disposable income of the middle-class population and their subsequent desire to eat on demand and at their own convenience.
The online delivery food business is a highly competitive one with unicorns like Foodpanda, GrabFood, LINE-MAN all vying for market share in Thailand. Since these services have established their presence in developed markets like the USA and Singapore, they have, in recent years, been turning their attention to ASEAN and particularly Thailand as they see the opportunity to expand their business here.
Online surveys were conducted with a sample size of 400 pre-screened respondents in Bangkok, Thailand. The results from my research showed that there is a strong relationship between customer behavior and the 7Ps Marketing Mix. In terms of marketing mix importance, respondents voted in favour of Product and Physical Evidence and Price. To conclude from this study, the target market for online food delivery business should be upper-middle class young adults, who are in the age range of 20 – 29 years old and have an average monthly income of 60,000 THB respectively.