Dividend Gate Capital and its partners invests $2 million in "Cloud Kitchens"

Al Hammadi: Cloud kitchens achieve the highest standards of hygiene and sterilization during Covid-19 pandemic.

Dividend Gate Capital, the pioneer investment firm has committed a sizeable $2 million to invest in the first major cloud kitchen concept in Bahrain. Globally, cloud kitchens have been attracting institutional capital as the world has seen a shift in consumer trends away from dine-in and more towards delivery or take-out. In this regard, CEO of Dividend Gate Capital, Mr. Khaled Al Hammadi stated, “Given our longstanding experience in the food & beverage industry, we believe that the disruption to the traditional dine-in model is inevitable and has already taken place to a certain extent with the rise of the centralized delivery platforms. Bahrain today remains a center for regional innovation and leadership and hence we believe that we are situated in the right market today for this project to be a major success. We are targeting the establishment of three cloud kitchen hubs over the next two years as the first phase of the plan. “

He added: “At Dividend Gate Capital, we strive in investing in unique and innovative opportunities in the region. Cloud kitchens have been on our radar for a while and the COVID-19 pandemic has only heightened the demand for such a concept. We have imposed the highest standards of hygiene across all our businesses and our centralized kitchens are going to be built with these fundamental hygiene standards in place and will continue even after the pandemic eventually passes.

“The idea behind ​​cloud kitchens is to serve customers through delivery service only, without opening its doors for dine in,” Al Hammadi explains. “This concept allows a group of different restaurants and brands to serve their meals through one centralized kitchen capitalizing on the technology available in the market today to achieve maximum efficiency and deliver a high quality product to our consumer at the lowest price due to the cost savings of running a lean operation. “

He added: “Since delivery accounts for the majority of sales in many restaurants today, we’ve decided to build a concept centered around state-of-the-art kitchen which will allow restaurants to focus on the food without the hassle of running a traditional dine-in restaurant, such as HR management for example. The funny thing is that the people who order their food through the existing delivery platform may not even be aware restaurant does not physically exist! These virtual restaurants have the ability to increase the effectiveness and efficiency of their operations and improve revenues and profits by up to ten percent through operating multiple brands under one roof, using one platform and an outsourced delivery fleet. ”