Stock Commentary: Nube Kuxina Launches New “Cloud Kitchen” Venture

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Merkado Barkada

September 2, 2022 | 09:00

Fruitas Holdings [FRUIT 1.19 2.59%] [link] announced yesterday that she will be launching a cloud kitchen business called “Nube Kuxina”.

FRUIT believes this venture will allow the company to effectively reach more customers with a wider range of internal and third-party products.

This venture is a continuation of FRUIT’s pivot away from its original, siled, physical food kiosk business model, and toward something that is suited to changing pandemic/post-COVID era customer behavior and the associated increase of the use of delivery applications.

A “cloud kitchen” is where a business uses a central commissary to produce food for multiple brands, which is then delivered directly to customers without the need for a storefront.

Instead of developing individual kiosks for each of its brands (Babot’s Farm, Buko Loco, Buko ni Fruitas, De Original Jamaican Pattie, Johnn Lemon, Juice Avenue, Black Pearl, Friends Fries, The Mango Farm, 7 107 Halo Halo Islands, Tea Rex, Kuxina, SHOU La Mien Hand-Pulled Noodles, Sabroso Lechon, Soy & Bean, Ling Nam, etc.), the company is building a large central commissary to produce dishes for each of the brands as advertised on its own delivery app and the various third party delivery apps that dominate the space.

MB RESULTS

Cloud kitchens are a tantalizing thought experiment that challenges some of the traditional underpinnings of the restaurant business model.

They’re incredibly popular in India, where many big and small brands have moved to delivery-only setups around this cloud kitchen concept.

On the one hand, it can be refreshing to get food delivered from a source that specializes entirely in the food delivery game.

I can’t count the number of times I’ve ordered something for delivery (like tacos de Pobla), only to receive a completely mangled dish in crappy packaging, held together loosely with tape, dripping with random greasy sauces everywhere .

On the other hand, however, it makes sense to me when well-known brands move from the physical space to the digital space, but it feels less intuitive for brands that I’ve never experienced before “in the real world”. life “.

Cloud kitchens seem like a great way to get something I’m already familiar with, and from that perspective, FRUIT’s collection of in-house and well-known brands fits that really well.

Will FRUIT offer its cloud cooking capabilities, as a service, to other large and small brands that don’t have the capacity to operate a commissary?

It looks like the first step in a move by FRUIT to become the Amazon of branded food delivery in the Philippines.

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