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Explain how the cloud kitchen platform can benefit

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Question: Common issues with online food delivery platforms apart from the technology side of things are always issues with logistics, inventory management as well as delivery operations. GrabFood - as the market leaderfor food deliveryplatform in Malaysia- will be launching its first GrabKitchen which allows for a reduction of logistics, inventory and deliveryoperational costs, where it allows business operators to operate in its 'cloud kitchen' concept (shared kitchen space), as well as allowing consumers to order food from multiple merchants while only paying for one delivery fee.

The 'cloud kitchen' concept was first introduced in Western and European markets, where it encourages merchants to partake in this uniqueplatform as a way to lower their own operating costs, and at the same time allowing for multiple orders from various brands and merchants from the consumer's end, creating a more wholesome experience in the online food delivery segment.

'Kitchen Bros' - inspired by the same direction and business model of GrabKitchen - aims to do just that in the heart of Kuala Lumpur, offering a similar "pay-as you-operate" cost and fee toits merchants, with a similarconcept of reducingoperational costs on the merchant's end, as well as opening up more opportunities for consumers to order from a centralised kitchen concept.

Using the FIVE (5) 'S' of Digital Marketing, explain how the 'cloud kitchen' platform can benefit the food merchants for Kitchen Bros.

Reference no: EM133294086

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