Kitopi, the UAE-based leading cloud kitchen platform, has struck a partnership deal with Kuwait-based KLC Virtual Restaurants for fast forwarding the latter’s expansion plans in the GCC region, a move widely seen as the reflection of market players resorting to joining hands to catch up with the fast growing demand for online delivery of food in the region.
The partnership deal also envisages Kitopi using its smart kitchen operating system (SKOS) – its unique technology – with KLC to maximize its kitchen efficiency and its brand and customer experience.
Kitopi executives said the partnership deal will lead to KLC Virtual Restaurants expanding its operations across the UAE and in some of the territories in the GCC in a phased manner.
The specific GCC markets planned for the proposed expansion, however, are not disclosed.
“Our mission is to satisfy the world’s appetite, and partnering with KLC brings us one step closer to achieving that mission,” said Mohamad Ballout, CEO and co-founder of Kitopi.
The Kitopi top executive said the tie-up with KLC is in line with Kitopi’s business model of partnering with brands to help them scale beyond borders, in as little as 14 days.
“We achieve this by taking care of the operations – such as sourcing of ingredients, cooking, packaging – and also delivery by partnering with third-party aggregators.”
Mohamad Ballout, CEO and co-founder of Kitopi
On whether the partnership with KLC for expansion will have any impact on Kitopi’s own expansion plans in the GCC region, the Kitopi executive said it would be actually complimentary to their expansion plans, as the company enter these markets it can take KLC live in those kitchens.
“KLC will basically take their brands to markets they weren’t operating in before, by going live in Kitopi’s kitchens. Kitopi will operate KLC’s brands, the same way it does it other brands,” the Kitopi executive said
Founded by Nabil, Mohammed and Mubarak Jaffar in 2008, KLC Virtual Restaurants is the largest virtual restaurant group in the region, currently operating 15 cloud kitchens and over 50 virtual brands.
“While KLC is an existing leader in the Kuwaiti market, we believe that given Kitopi’s expertise in the region to expand brands, and their innovation in the space, this partnership is the right move to accelerate our growth in the region,” said Mubarak Jaffar, CEO and co-founder of KLC Virtual Restaurants.
Mubarak Jaffar, CEO and co-founder of KLC Virtual Restaurants
A senior Kitopi executive earlier told Arabian Business that the company was set to enter Bahrain and Qatar this quarter as part of its planned expansions into the wider GCC market.
It is also gearing up to enter the Southeast Asian market between July and September.
Cloud kitchens have lately garnered attention from global investors and international food brands, as consumers have been forced to turn online for food delivery due to the pandemic-induced lockdowns and movement restrictions.
On their part, FoodTech platforms have also been upping their game. Rebel Foods plans to enter into a partnership deal with Expo 2020 Dubai, slated to commence in October, and Kitopi moved to diversify into e-grocery business by launching Shop Kitopi in Dubai last March.
Kitopi raised $60 million last year, taking total investments in the venture to $120 million since it was founded in 2018.
The company currently operates over 60 kitchens across the region and partners with more than 170 brands globally.
The global cloud kitchen market, worth $43.1 billion in 2019, is estimated to reach $71.4 billion by 2027, according to a report by Allied Market Research.
The GCC region has also followed the trend, with recent reports suggesting that the UAE is emerging as a leading market for online food delivery with an annual market size of over $800 million.
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