KARACHI: Pakistan entered the $1 trillion global cloud kitchen market amid rising coronavirus infections this year, generating significant interest among restaurant owners as the world was forced to rethink its passion for dining.
A cloud kitchen restaurant, also known as dark kitchen, ghost kitchen, and satellite or franchise restaurant, is a delivery-only concept. It receives orders from multiple brands and retains their unique taste while preparing food.
“The concept was conceived during the outbreak of COVID-19, and it was also during this period that we decided to introduce it in Pakistan,” Abdus Samad Rashid, founder and CEO of Hotpod, Pakistan’s first cloud kitchen, told Arab News on Saturday. “Cloud kitchens help food brands discover themselves digitally. The coronavirus situation has also acted as a steroid to the idea which was already gaining popularity due to the mounting costs of restaurants.”
Cloud kitchens are expected to create a $1 trillion global opportunity by 2030. At present, more than 13,000 of these facilities operate around the world, according to Euromonitor International, with 7,500 in China and 3,500 in India.
Backed by Singapore-based High Output Ventures and strategic local investors, the Hotpod introduced cloud kitchen concept only two months ago, enabling restaurants to expand their network through a managed kitchen infrastructure with minimum capital risk, zero hassle, and effective customer service.
“Cloud kitchen is a new concept in our market,” Rashid explained. “These are hidden kitchens that serve food at lower rates since they reduce the operating costs of restaurants significantly. It also makes it possible for them to offer services in new geographies by simply maintaining their digital presence.”
“These kitchens not only promise greater economies of scale to different brands but also generate more employment opportunities, increase tax revenues, and enable home chefs to set up and operate professional food chains,” he said.
Hotpod plans to establish about 50 cloud kitchens in the next four years across the country and hopes to branch out in the Middle Eastern markets.
“We started with two kitchens and are trying to add one every month,” he informed. “Pakistan is a growing market and we have witnessed it during the pandemic. Our intention is to expand in the Pakistani market first before moving to the Middle East and North Africa. Dubai and Saudi Arabia will also be our preferred markets.”
In Pakistan, there are more than 100,000 food outlets across the country. The food and beverage processing industry is also the largest in the country after the textile sector, accounting for 27 percent of the value-added production and 16 percent of employment in the manufacturing sector, according to Pakistan’s Board of Investment.
Adeel Hashmi, Chief Growth Officer at Hotpod, estimated that the potential of cloud market in Pakistan was roughly about Rs7.5 billion ($47 million) per year. He added that major drivers behind the success of cloud kitchen business included high demand for online food delivery, rising real-estate costs, and coronavirus infections.
“Cloud kitchens are the future of the restaurant business, especially after the pandemic. When 50-year-old people and children below the age of 15 place online orders, it implies a big change,” Hashmi said. “Our volumes in terms of transactions and brands have doubled since we started the kitchen in September 2020.”
Hashmi said the cloud kitchen was currently serving nine local brands and targeting at least 20 businesses per kitchen.
“Opening a new restaurant requires an investment of millions of rupees,” Hashmi noted as he highlighted how cloud kitchens could help new entrants in the market.
Stakeholders say the concept can cut down costs and increase outreach of restaurant businesses, especially amid COVID-19.
“This is a good concept and more people should focus on it. The idea helps reduce input costs and enables food chains to cater to a much larger segment of customers,” Tania Faheem, partner of 3 Sisters Cuisine, a homebased eatery that caters to online orders, told Arab News.
The market size of Pakistan’s food industry is estimated to be somewhere near Rs20 billion per year, while the global food and beverage market size is thought to be $7 trillion, according to various sources.
Pakistan enters $1 trillion cloud kitchen market as pandemic rages on
https://arab.news/nnjpv
Pakistan enters $1 trillion cloud kitchen market as pandemic rages on
- Estimates suggest the global cloud kitchen market can reach $1 trillion by 2030
- The business has found traction in Pakistan due to growing demand for online food delivery and rising real-estate costs
Perpetrators of Bishkek mob violence will be punished, Kyrgyz FM assures Pakistani counterpart
- Frenzied mobs targeted hostels of medical universities and private lodgings of international students, including Pakistanis, in Bishkek last week
- FM Ishaq Dar told his Kyrgyz counterpart Pakistan’s main concern was the safety of its nationals, especially students, affected by Friday’s violence
ISLAMABAD: Kyrgyzstan’s Foreign Minister Jeenbek Kulubaev on Monday met Pakistan’s deputy prime minister and foreign minister, Ishaq Dar, in Astana and assured him the Kyrgyz government would bring to justice perpetrators of last week’s mob attacks on foreign students in Bishkek, Pakistani state media reported.
Frenzied mobs targeted hostels of medical universities and private lodgings of international students, including Pakistanis, in Bishkek last week after videos of a brawl between Kyrgyz and Egyptian students went viral on social media.
Pakistan has since then ramped efforts to repatriate its students from the city and more than 600 Pakistani students have returned home via three different flights. According to official statistics, around 10,000 Pakistani students are enrolled in various educational institutions in Kyrgyzstan, with nearly 6,000 residing and studying in Bishkek.
The meeting between Dar and his Kyrgyz counterpart was held in Astana, Kazakhstan on the sidelines of a meeting of the Shanghai Cooperation Organization’s (SCO) Council of Foreign Ministers, the state-run Radio Pakistan broadcaster reported.
“Kyrgyz government has taken swift action to restore law and order in the country, and the perpetrators of the mob riots would be punished under the Kyrgyz law,” the report quoted FM Kulubaev as telling his Pakistani counterpart.
During the meeting, Dar shared concerns about Pakistani students in Kyrgyzstan and requested Foreign Minister Kulubaev to ensure their security, according to the report.
He underlined that Pakistan’s main concern was the well-being of its nationals, especially the students who were primarily affected by last week’s violence.
“Bilateral relations between Pakistan and Kyrgyz Republic, especially in the domains of energy, connectivity, trade and people-to-people contacts also came under discussion,” the report read.
“Both the dignitaries expressed satisfaction at the progress of established bilateral institutional mechanisms.”
Dar arrived in Kazakhstan on Monday to represent Pakistan at the two-day meeting of the SCO Council of Foreign Ministers. He will also hold bilateral meetings with his counterparts on the sidelines of the summit.
Founded in 2001, the SCO is a major trans-regional organization spanning South and Central Asia, with China, Russia, Pakistan, India, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan as its permanent members. The SCO member states collectively represent nearly half of the world’s population and a quarter of global economic output.
The organization’s agenda of promoting peace and stability, and seeking enhanced linkages in infrastructure, economic, trade and cultural spheres, is aligned with Pakistan’s own vision of enhancing economic connectivity as well as peace and stability in the region.
Since becoming a full member of the SCO in 2017, Pakistan has been actively contributing toward advancing the organization’s core objectives through its participation in various SCO mechanisms.
Pakistan seeks ‘viable business plan’ for state-owned broadcasting corporations
- A cabinet committee recognized ‘strategic nature’ of Pakistan Television Corporation, Pakistan Broadcasting Corporation
- The development comes amid Pakistan’s push for privatization, reforms in loss-making state enterprises for IMF bailout
ISLAMABAD: The Pakistani government on Monday sought a “viable business plan” for two state-owned broadcasting corporations, the Finance Division said, amid the South Asian country’s push for reforms in loss-making state entities.
The statement came after a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) in Islamabad, which was presided over by Finance Minister Muhammad Aurangzeb.
The development comes amid Pakistan’s push for privatization and reforms in state-owned enterprises (SOEs) as it negotiates with the International Monetary Fund (IMF) a fresh bailout program.
The cabinet committee reviewed a proposal of the information ministry regarding the Pakistan Television Corporation (PTVC) and the Pakistan Broadcasting Corporation (PBC).
“The CCoSOEs recognized the strategic nature of Pakistan Television Corporation (PTVC) and Pakistan Broadcasting Corporation (PBC) and directed the Ministry of Information & Broadcasting (MoIB) to present a viable business plan to the committee for efficient management of these enterprises,” the Finance Division said in a statement.
Under the last $3 billion IMF program that helped Pakistan avert a debt default last year, the lender said SOEs whose losses were burning a hole in government finances would need stronger governance.
To negotiate a fresh bailout with the IMF, Pakistan must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.
Among the main entities Pakistan is pushing to privatize is its national flag carrier, the Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.
Pakistan PM prays for recovery of Saudi Arabia’s King Salman
- Saudi king is due to undergo treatment for lung inflammation, SPA reported
- Shehbaz Sharif says King Salman sincere friend of Pakistan, guide for Muslim world
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Monday extended prayers for the recovery of Saudi Arabia’s King Salman, who is due to undergo treatment for lung inflammation.
The treatment will consist of a course of antibiotics at Al-Salam Palace in Jeddah, the state-run Saudi Press Agency reported on Sunday.
The king underwent medical tests at the royal clinics at the palace earlier on Sunday after he suffered from a high temperature and joint pain.
“I have learnt with grave concern about the health of His Majesty King Salman bin Abdulaziz. His Majesty is not only a sincere friend of Pakistan but as the Custodian of the Two Holy Mosques, a leader and guide for the entire Muslim ummah,” Sharif said on X.
“The people of Pakistan join me in praying to the Almighty for His Majesty’s complete recovery and swift return to full health.”
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to a large number of Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian country.
Saudi Arabia has also often come to cash-strapped Pakistan’s aid by regularly providing it oil on deferred payment and offering direct financial support to help stabilize its economy and shore up its forex reserves.
Net-metering, tax controversies cloud future of solarization in Pakistan despite government clarification
- Government says it won’t end net-metering policy for solar power producers, promises to honor commitments made by companies
- Pakistan’s energy woes stem from high capacity charges consumers pay due to long-term government contracts with power producers
KARACHI: Controversies about net-metering and imposition of a new tax have cast a cloud over Pakistan’s transition to solar energy despite the government’s ambitious plans, stakeholders said on Monday, adding the situation has left them in a state of uncertainty.
Pakistan approved the net-metering policy in 2017 that allows consumers to sell excess electricity produced by their solar systems to power distribution companies, resulting in significant savings in their monthly bills.
However, the energy ministry stirred a controversy last month by declaring that net-metering was promoting “unhealthy investments” in installation of solar power by affluent domestic and industrial consumers, hinting at cutting the buyback rates.
“Before this [controversy], people were shifting to solar [energy] in such a way that we thought that 100 percent Pakistan embraced solar energy,” Zulfiqar Ali, an importer, supplier and installer of solar panels, told Arab News on Monday.
“Now, we’re witnessing a stark contrast, a slowdown in inquiries, stagnation in projects, all amidst a talk of governmental reconsideration of solar energy policies.”
Ali said the net-metering issue had a lot of effect on the market as the purchasing groups suddenly went silent and the deals that were going on became stagnant. “The planned projects have gone into an idle position, people are neither saying yes nor no,” he added.
Recent reports published by local media about new taxes and an end to net-metering policy further compounded the situation and prompted Energy Minister Awais Leghari to explain the government’s position on the matter.
“We completely reject these stories. The agreements our companies have made with net-metering users, whether they are for five years, six years, or seven years, will not be altered in any way and the government will not damage its reputation, nor will it cause any inconvenience to those investors,” Leghari said at a press conference in Lahore on Sunday.
He said the government was fully committed to renewable energy and solarization and was in favor of continuing the net-metering policy.
“If, after studying it over the next few months, there is a need to revise it, it will be done very responsibly and in consultation with stakeholders,” Leghari said.
“After the approval of the entire government, if necessary, we will rationalize this. At this moment, we are committed to fulfilling all the contracts we have signed with various people. We will uphold the integrity of the entire government and move forward together.”
But despite the government’s assurances, an atmosphere of uncertainty prevails in the South Asian country with regard to solarization.
“I wanted to install solar panels at my rooftop to mitigate the impact of high electricity bills but now I am unable to take a decision because of the government’s intended moves of either taxing panels or curtailing net-metering benefits,” said Khalid Abbas, a resident of Karachi, adding that he would wait for clarity on the subject.
Solar panel suppliers said people, who were buying solar panels by selling their cars or jewelry, had stopped purchasing the equipment.
“Residential consumers who wanted to install 5-20KW panels have stopped and are waiting for clarity,” Zulfiqar said.
Pakistan’s energy woes stem from the substantially high electricity bills, mainly due to the capacity charges that are as high as 65 percent and the nation is bound to pay these to power producers, even though their plants stand idle.
The power purchase price (PPP), or the average per unit price based on the generation cost, is Rs20.60, which includes Rs14.09 capacity charges, and Rs6.21 fuel and variable charges, according to Pakistan’s reference tariff for fiscal year 2023-2024.
Pakistani energy experts believe the volume with which solar energy is increasing is still “insignificant” and does not even make 1 percent of the total power generation in the country.
“But the way it is going on in Pakistan, perhaps a significant portion of our net-metering will be done from it,” Dr. Khalid Waleed, an expert on energy economics, told Arab News. “Around 2,000MWs will be coming from net-metering. So, it should not be discouraged at all.”
When consumers switch to solar power, Waleed said, capacity charges are borne by other consumers that ultimately increases their power burden.
Experts say the country won’t be able to get rid of the capacity charges before 2050 due to long-term contracts made with power producers.
Pakistan Deputy PM arrives in Kazakhstan to attend SCO Foreign Ministers’ meeting
- The SCO is a major trans-regional organization and its member states collectively represent nearly half of world population
- Deputy PM Ishaq Dar will meet Kyrgyz FM Jeenbek Kulubaev tonight to discuss the latest situation after Bishkek mob violence
ISLAMABAD: Ishaq Dar, Pakistan’s deputy prime minister and foreign minister, on Monday arrived in Kazakhstan to attend a meeting of the Council of Foreign Ministers of the Shanghai Cooperation Organization (SCO), the Pakistani foreign ministry said.
Founded in 2001, the SCO is a major trans-regional organization spanning South and Central Asia, with China, Russia, Pakistan, India, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan as its permanent members. The SCO member states collectively represent nearly half of the world’s population and a quarter of global economic output.
The organization’s agenda of promoting peace and stability, and seeking enhanced linkages in infrastructure, economic, trade and cultural spheres, is aligned with Pakistan’s own vision of enhancing economic connectivity as well as peace and stability in the region.
Upon arrival at the Astana airport, Dar was received by Director of the Kazakh Ministry of Foreign Affairs Nursalimuly Yergalym, Pakistan’s Ambassador in Astana Nauman Bashir Bhatti and Pakistan’s National Coordinator for the SCO, Ambassador Marghoob Saleem Butt.
“In Astana, a meeting has been arranged between the Deputy Prime Minister Dar with the Foreign Minister of Kyrgyz Republic, Jeenbek Kulubaev, this evening in order to discuss the latest situation in Bishkek with a view to ensure the well-being of Pakistani students,” the Pakistan foreign ministry said in a statement.
Frenzied mobs targeted hostels of medical universities and private lodgings of international students, including Pakistanis, in Bishkek last week after videos of a brawl between Kyrgyz and Egyptian students went viral on social media.
Pakistan has since then ramped efforts to repatriate its students from the city and more than 600 Pakistani students have returned home via three different flights. According to official statistics, around 10,000 Pakistani students are enrolled in various educational institutions in Kyrgyzstan, with nearly 6,000 residing and studying in Bishkek.
In Astana, Dar will represent Pakistan at the two-day meeting of the SCO Council of Foreign Ministers. He will also hold bilateral meetings with his counterparts on the sidelines of the summit.
Since becoming a full member of the SCO in 2017, Pakistan has been actively contributing toward advancing the organization’s core objectives through its participation in various SCO mechanisms.
During his visit to China last week, Dar also met SCO Secretary-General Ambassador Zhang Ming and reiterated Pakistan’s commitment to the organization’s charter and its ideals, the Pakistani foreign ministry said in a statement.
“He expressed Pakistan’s strong commitment to advancing SCO’s security and development cooperation agenda,” the statement said.
