Feasibility Study to Establish a Cloud Kitchen in West Bank

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Aseel Mayaleh
Rawan Yasser
Linda Othman
We’am Moneer
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abestract The restaurant sector in the West Bank is constantly increasing, as there are more than 5,000 restaurants and cafes in Palestine, and the reason for this increase is that the capital to establish the restaurant returns quickly, due to the increasing demand for this service investors prefer to invest in the restaurant sector, in addition to the fact that this sector has become linked Significantly to the delivery sector, where most restaurants provide takeaway service. Customers go to restaurants not only for the purpose of food, they also go to enjoy the place, which makes the owners choose places for their restaurants with a distinctive location, well-known in the area, and a comfortable interior decoration which increases the fixed cost. With the increase in delivery requests and the lack of coordination between restaurants, as meals from different restaurants going to the same area are not delivered together, this leads to pressure on the traffic system and thus the delay in food delivery. Because the two types of customers (restaurant customers and delivery customers) share the same kitchen that prepares the food for them, they face the problem of delays in receiving food; i.e. longer lead time. The solution is to establish a central cloud kitchen divided into small spaces; each space is allocated for certain restaurant name to prepare the requests of delivery customers. The proposed kitchen is based on the idea of having all the restaurants in this cloud sharing one mobile application; so that customer orders can be received simultaneously by the different member restaurants, orders are then to be prepared by the corresponding member restaurants in the cloud kitchen, then orders sharing nearby address are to be delivered together by a delivery company; which of course reduces the pressure on the traffic system. The presence of such a cloud kitchen reduces the load on the main restaurant branch, as well as reducing the fixed cost in the delivery branch located in the Cloud Kitchen, thus reducing the price of the meal for delivery customers; this leads to an increase in sales and productivity. On both branches, main and cloud, the time between ordering and receiving the meal (i.e. lead time) will be reduced.