Evaluate the positive impacts on the profitability of a food retail business operating from a cloud kitchen, by assessing the impact of rent reductions, improved productivity and the ability to pivot the business based on supply and demand.

The Nascent Concept of the Cloud Kitchen – A Business Model for the Maltese Food and Beverage Industry”

The research study will look at the validity of the concept of a cloud kitchen can have on the Maltese food and beverage market. The concept could have several possible value add outcomes that can positively impact the Maltese food and beverage offering by looking at how this model can evolve to be tailored to suit the Maltese business, in particular outcomes in relation to improved operational efficiency and better customer service offering. Data shows that there is an increased interest in the food home delivery market.
This type of business model set up is becoming increasingly popular in areas where rental rates are considered very high, thus rendering the business model of the restaurant untenable from a financial perspective. The rational of securing a prime location for a restaurant, which includes its own kitchen, that has enough frontage, visibility and is accessible to a volume of foot traffic, thus rendering the restaurant viable, often means that this comes at a premium rate.

Research is showing that there is potential for local investment in a cloud kitchen as this model is in a rapid growth stage. International markets are forecasting increased revenues, profitability and sustained growth well into 2027. This makes the study relevant and exciting to the researcher as the paper will look into developing a “live” business model for a dark kitchen in Malta that will evaluate the positive impacts on the profitability of a food retail business operating from a cloud kitchen, by assessing the impact of rent reductions, improved productivity and the ability to pivot the business based on supply and demand.