BUSINESS MODEL AND KEY LEGAL ASPECTS OF CLOUD KITCHEN AS A RESULT OF COVID-19 DYNAMICS IN FOOD & BEVERAGE INDUSTRY (CASE STUDY: KITCHEN HUB)

• Main Author: Chairmanda Afla, Edwina
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68231
• Institution: Institut Teknologi Bandung

The partial lockdowns as well as the large-scale social restriction and limitations due to COVID-19 pandemic have resulted in shifting the consumer’s shopping behavior to digital media and e-commerce platforms. Specifically in the F&B industry, online food delivery segment in Indonesia is also projecting continuous growth. Seeing the indications in this situation, the concept of a cloud kitchen business emerged naturally within the last few years and got widespread acceptance in the market. Cloud kitchen is a centralized licensed food production facilities where more than one restaurant or brand share space to cook and process their product and offers delivery services to their customer. Kitchen Hub was established in 2020 to provide a multi-services and accelerator for F&B ecosystem by providing a leased kitchen, or kitchen cloud services that is accompanied by numerous business consultancy for its merchant tenant to grow their business. This thesis will analyse whether the current business model that is implemented by Kitchen Hub, with a close look towards several business and legal analysis such as PESTEL, Porter’s Five Forces, and VRIO, as well as to analyze the key legal aspects in Kitchen Hub and in cloud kitchen industry. The methodology that will be used in this research is qualitative methods. This research will use primary and secondary data. The primary data will be gathered by having an in-depth interview. This study found that despite Kitchen Hub’s rational consideration of adopting lease-based legal relation between them and their tenants, this offers commercial risk that restricts the amount of revenue base on a fixed leasing price, as opposed to revenue-sharing models. By keeping the legal relations on lease-based relation, Kitchen Hub is losing the chance to capture a larger revenue stream, compared to the growth offers by revenue-sharing.