Cloud kitchens are no novel introduction to the Malaysian market. While they have yet to really mushroom across the city, Kuala Lumpur is already home to growing names such as Cookhouse and Pop Meals. Now it is home to another, COOX.
Founded by former youth and sports minister, Syed Saddiq Syed Abdul Rahman along with entrepreneurs, culinary and technology experts, Ken Lee, Stewart Leong, Siong Ong and Vinesh Sinha, COOX is the collective aim to help F&B players tap into the on-demand delivery model and make the right operation pivot.
They are commonly known as purpose-built spaces that function as shared cooking facilities without store fronts or dine-in options and are only used to solely produce food for delivery, but COOX however, is looking beyond than just becoming a typical cloud kitchen.
They want to offer players in the industry particularly younger players a supportive platform that essentially lowers the barrier of entry so they can thrive despite the difficult position left by the pandemic.
“We are looking to become an ecosystem that will offer an all-in-one platform for interested players who can enjoy similar benefits a franchise might enjoy,” co-founder Vinesh Sinha says.
Each founder also comes with their own set of expertise as well. Joining the former youth minister, Lee is a culinary entrepreneur and 18-year F&B industry veteran and consultant. Ong on the other hand is a serial entrepreneur and technology industry expert who has been instrumental in various startups.
Additionally, founder of FatHopes Energy and passionate environmentalist, Sinha is also in the team along with Leong, a construction industry expert, who has built an extensive professional network including consultants, architects, local municipal councils, and property developers.
These founders will each play a role in consulting with potential clients to achieve the best results they can during their time in COOX.
Not just another kitchen
Sinha highlights that brands on the site will be able to pool orders of ingredients and consumable on the COOX platform together, sourcing from suppliers with critical mass at the best possible prices. This in return will reduce the cost of goods and at the same time enhance profitability.
COOX also offers to be a central place for orders from all partnered delivery apps and tenants will be able to track their financial performance in real time as well.
“We will also help them to optimise their operations and product offering so they can capitalise on both delivery-based business opportunities and conventional sales channels,” Sinha says.
Potential tenants who are keen to try out the model will be able to do so for a month without a binding tenancy fee and only shares a six percent revenue sharing model with COOX.
“Low Capex, ideal location, labour optimisations, brand image, and more importantly data. These are the things that I believe will set us apart and which will definitely attract players,” he adds.
With the first location set up at Glo Damansara, TTDI, Sinha and his co-founders believe the demand is ever ready thanks to the mature residential surrounding the area and with delivery coverage right up to Sg Buloh, Selayang, Ampang, Cheras, Seri Kembangan, Puchong and Shah Alam.
COOX also offers 26 exclusive cooking suites that range from 88 to 132 sq ft with a variety of options to choose from which includes delivery, takeaway or even dine-in.
“Brands don’t have to also worry about pushing out huge promotions or matter of fact high delivery commissions. We understand the issues that have plagued the industry and we are also considering some of the concerns that have come up from the industry in the last couple of months,” Saddiq says.
The cloud kitchen is currently in discussions with major delivery players such as Grab and airasia to offer ideal and exclusive delivery fees applicable to tenants.
“We are ready to partner with F&B operators facing business challenges and can customise revenue sharing models suited to their business circumstances,” said Saddiq, adding that this is a vital step towards supporting entrepreneurs and lowering the barrier to entry so they can continue operations and thrive in despite this difficult period.
“This is the best effort put together by the 5 of us. Since there is not much regulation, we are able to work at a faster pace and attract investors to come try this new model with us. We are hoping what we are doing now will be able to trigger the rest of Malaysia and players abroad to adopt this move,” Sinha concludes.