By 2027, the MENA’s cloud kitchen market is expected to exceed $70 billion. It’s a sector rising in popularity thanks to a revolutionary approach to dining—but with competition increasing, innovation and novelty aren’t enough to stay in the game long-term. Ensuring your cloud kitchen’s future success relies on taking steps in the present. Every aspect of your operations could likely be enhanced, and in today’s blog, we’re discussing one all-encompassing way to go about improving cloud kitchens: advanced Enterprise Resource Planning (ERP) solutions.
Cloud Kitchens Are Primed to Thrive in the Middle East—But There’s a Catch
As the 2020 Consumer Insights Survey revealed, consumers in the Middle East value convenience, so much so that they’re more likely to use food delivery services than other global consumers. Three in five reported having restaurant-prepared food delivered at least once a week, which makes for fertile ground for cloud kitchens.
Focusing on operational excellence is especially important for these ventures, because without the draw of a physical presence, cloud kitchens are on the back foot when it comes to meeting the growing preference for phygital experiences—those that combine the ease and convenience of digital technologies with the sense of confidence a physical storefront provides. In order to stay competitive, establishing a reputation as a reliable dining service that customers can count on for a consistent stellar experience is paramount.
With that in mind, let’s look at three critical areas where businesses often struggle and how optimizing cloud kitchen operations with ERP systems can make the world of difference.
Issues with Inventory Management
One of the key advantages of being a cloud kitchen is the ability to experiment with new menu items. Since you don’t have the overhead of maintaining a physical storefront, you can introduce diverse and experimental offerings to attract different customer segments. But this flexibility can be a double-edged sword; managing such a wide variety of ingredients and supplies efficiently can become its own challenge.
Without proper inventory management, you could suffer from overstocking, understocking, or food waste, all of which can harm profitability. Advanced ERP systems for cloud kitchens—like LS Retail—can mitigate this problem:
- Predictive Analysis: ERPs provide predictive insights based on historical data and current trends. By forecasting demand accurately, you can avoid overordering or running out of key ingredients—particularly important for cloud kitchens in the Middle East, where demand can fluctuate dramatically based on seasons and events.
- Real-Time Tracking: With LS Retail solutions for cloud kitchens, you can track your inventory in real-time across multiple locations. Whether you operate one or several cloud kitchens, this feature ensures that your stock levels are always aligned with demand, preventing unnecessary wastage or last-minute supply shortages.
- Automated Replenishment: Automating replenishment orders can save you both time and money. ERP systems automatically trigger orders when stock levels hit a predefined threshold, reducing the risk of human oversights. This way, you maintain the quality of ingredients while keeping costs low.
By optimizing cloud kitchen operations with a comprehensive ERP solution, you can ensure that your kitchen runs like a well-oiled machine. You have the right ingredients available at the right time and the ability to experiment with new menu items as you wish without worrying about inefficiencies.
Obstacles in Order Processing
Elevated efficiency compared to traditional restaurants is a large part of cloud kitchens’ appeal. Unlike dine-in restaurants, where customers’ experience is more heavily influenced by their interactions with staff, cloud kitchens primarily rely on quick, accurate order fulfillment to keep customers happy.
The faster, easier, and more reliable a customer’s ordering experience is, the more likely they are to come back again and recommend you to a friend. However, as the number of orders increases, so does the potential for mistakes—incorrect orders, delays, or lost tickets—all of which can damage your brand and bottom line.
Advanced ERP systems streamline order processing, offering benefits including:
- Centralized Order Management: With ERP systems for cloud kitchens, you can manage orders from multiple delivery platforms (like Uber Eats, Zomato, and Deliveroo) in one place. This aggregation eliminates the hassle of switching between different systems, reducing the risk of errors and saving precious time. Overall, you’re able to accept orders more quickly, and serve your customers faster.
- Order Accuracy: Advanced ERPs can further help reduce errors by automating order input. This ensures that the kitchen receives accurate and clear instructions, improving the chances of correct and timely order fulfillment. With fewer errors, customers are more likely to have a positive experience and return to your cloud kitchen.
- Better Customer Experience: An ERP system like LS Retail for cloud kitchens is designed to integrate with various customer-facing platforms and contactless payment options, ensuring that customers receive updates on their orders in real-time. This transparency builds trust and encourages repeat business.
By using an ERP system to optimize cloud kitchen operations, you improve your kitchen’s speed, accuracy, and customer satisfaction, leading to higher profit margins and better overall performance.
Bringing Your Dark Kitchen Into the Spotlight with Advanced ERP Solutions
Cloud kitchens aren’t without their potential drawbacks. Delivery costs, especially when using third-party services, can add up. Additionally, the absence of a sit-in experience makes it harder to establish strong brand recognition. To succeed, dark kitchens must carefully choose menus and packaging that ensure food arrives in perfect condition, both in terms of temperature and presentation.
ERP solutions can:
- Centralize order management, streamlining coordination between delivery platforms and kitchen staff to reduce errors and optimize preparation times.
- Track inventory in real-time, preventing stock shortages and enabling accurate demand forecasting.
- Integrate with delivery services, managing costs and improving delivery efficiency.
- Provide data insights on sales trends, customer preferences, and performance to optimize menu offerings.
- Enhance overall operational efficiency by automating key processes and offering comprehensive reporting tools.
For entrepreneurs, investors, and industry professionals across the Middle East, the message is clear: adopting advanced ERP technology is more than a wise investment—it’s a necessity. By improving cloud kitchens with ERP systems, you not only increase operational efficiency but also position your business for long-term success in an ever-evolving market.
The next step is simple: evaluate your current operations and identify where an ERP system could make the most significant impact. Reach out to a trusted ERP provider and start the journey towards a more streamlined, efficient, and optimized cloud kitchen today.
ThinkTribe: Premium Microsoft D365 ERP and LS POS Partners for Dubai and the Middle East’s QSRs
Welcome to ThinkTribe, the platinum Microsoft D365 ERP & LS Partner. With a main office in the UAE, we serve clients across the Middle East, including the likes of Apparel Group’s F&B arm—with brands such as Jamie Oliver’s Pizzeria, Coldstone Creamery and Sushi Library. As seasoned specialists in system integration and ERP solutions, we excel in fostering profitable and scalable growth for businesses spanning various sectors, leveraging state-of-the-art technology solutions.
Whether you’re eager to harness the power of LS Retail for your enterprise in Dubai or any other part of the Middle East, seeking tailored advice to select the ideal solution, or requiring hands-on support throughout the implementation process, our dedicated team is here to support you at every turn. Reach out to us today, and let’s propel your business towards success together.
