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
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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
Peace talks to continue in Pakistani district wracked by sectarian feuding as two more killed
- Clashes between Sunni and Shia tribes have killed over 130 people in Kurram since last month
- Violence has triggered road closures, disrupting access to medicine, food, fuel, education, work
PESHAWAR: A government-backed council of tribal elders leading peace talks in a Pakistani district where at least 136 people have been killed since last month in sectarian clashes will resume meetings in two days and expects to sign a “durable” peace agreement, a government official said on Monday.
Kurram, a tribal district of around 600,000 in Khyber Pakhtunkhwa province where federal and provincial authorities have traditionally exerted limited control, has frequently experienced violence between its Sunni and Shia Muslim communities over land and power. Travelers to and from the town ride in convoys escorted by security officials.
The latest feuding started on Nov. 21 when gunmen ambushed a vehicle convoy and killed 52 people, mostly Shias. Nobody claimed responsibility for the assault, which triggered road closures and other measures that have disrupted people’s access to medicine, food, fuel, education and work.
Earlier this month, the provincial government of the Pakistan Tehreek-e-Insaf party formed a ‘grand jirga’ of political and tribal heavyweights to convince rival tribes to shun violence.
“The jirga will resume meetings after two days and is expected to sign a durable peace agreement to the dispute,” Khyber Pakhtunkhwa (KP) government spokesman Muhammad Ali Saif said in a statement, which came after two Shias were killed in the Ochat area of Kurram on Sunday night.
“The two persons were coming to their villages but on the main road unidentified men shot them dead at around 8pm,” Kurram police spokesman Riaz Khan told Arab News on Monday.
“One of the victims was from Alam Sher village and the other was from Zerran, Parachinar.”
Khan said at least 136 people had been killed in the violence since last month. If you added those who had died due to lack of access to hospitals and medicines following the road closures, the number reached at least 200, the police officer said.
Last week, Saif said authorities had decided to dismantle private bunkers, observation posts used in the fighting by both sides, and given a deadline of Feb. 1 for tribesmen in Kurram to handover heavy weapons. Local tribesmen have so far reportedly refused to surrender their weapons, citing concerns about their safety.
A tribal elder who is part of the jirga, however, said most tribes had agreed to the council’s recommendations.
“The jirga faces no big hurdles because both the sides have expressed willingness to abide by the jirga decisions, including removal of bunkers and surrendering of heavy weapons,” jorga member Muneer Bangash told Arab News on Monday.
“Once there are no heavy weapons, I’m sure there will be no mass killings at the scale that we have recently witnessed.”
He said both the sides wanted “communal coexistence and harmony” and realized that the decades-old clash had only brought destruction.
“We will give good news very soon. Half of the threat will be gone once the heavy weapons are collected. Peace will gradually take root,” Bangash added.
Meanwhile, the KP government has launched a helicopter service to evacuate people and transport aid and medicines to Kurran as a major highway connecting Kurram’s main city of Parachinar to the provincial capital of Peshawar has been blocked since last month, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages.
On Sunday, two flights evacuated 27 individuals and 16 government staffers and jirga members, according to KP chief minister’s office. Since last week, over 180 people, including women, children and patients, have been transported via helicopter, with priority given to those in need of urgent medical attention.
In a meeting on Monday, the KP cabinet decided to establish a special police force to secure the Peshawar-Parachinar road, for which 399 people would be recruited.
Shia Muslims dominate parts of Kurram, although they are a minority in the rest of the country. The area has a history of sectarian conflict, with militant groups like the Pakistani Taliban and Daesh also previously targeting the minority group.
Fam Jam: Husband succeeds wife as chief traffic officer in Pakistan’s Lahore
- Amara Athar was appointed first women head of Lahore traffic police last year
- She handed over the reins last week to her hudband DIG Athar Waheed
ISLAMABAD: The incoming Lahore Chief Traffic Officer is no stranger to Amara Athar, the Pakistani cultural capital’s first women head of traffic police, who handed over the reins this month to her successor.
In a twist that has led to widespread social media commentary, DIG Athar Waheed, who was appointed as Lahore CTO on Saturday, is the husband of Amara. His appointment has also led to the upgrade of the CTO position to the rank of Deputy Inspector General (DIG).
“It was an honor to be your Chief Traffic Officer for the year 2024,” Amara said on X. “May you all continue to work with dedication and professionalism for the safety of road users.”
BS-19 police officer Amara was appointed Lahore CTO last December, making her the first woman police officer to hold the key traffic control assignment in the provincial capital of Punjab.
“Ms Athar replaced retired Capt Mustansar Feroz, who had been holding the the Lahore CTO post for the last one year,” Punjab police said in a statement at the time, adding that there were many male contenders for the top slot of the Lahore traffic police, but Punjab Inspector General of Police (IGP) Dr. Usman Anwar preferred the decorated woman officer.
Amara was the fourth woman police officer posted in Lahore under Anwar, showing the Punjab Inspector General’s “policy of prioritising female officers for the field assignments in a bid to change the decades-old tradition of ‘male dominant’ policing in the province,” Punjab police said.
Pakistan stock market registers second highest single-day gain on ‘easing political noise’
- The benchmark KSE-100 index surged by 4,411 points, or 4.3 percent, to close at 113,924 points on Monday, according to stock traders
- The development came as Pakistan’s government holds talks with ex-PM Imran Khan’s PTI opposition party to address political polarization
ISLAMABAD: The Pakistan Stock Exchange (PSX) began the week on a strong note and gained more than 4,000 points on Monday, stock analysts said, attributing the rally to “easing political noise” and upbeat economic indicators.
The benchmark KSE-100 index surged by 4,411 points, or 4.3 percent, to close at 113,924 points on Monday, according to stock traders. The market saw the trading of 424,809,788 shares and registered the second highest single-day gain from Friday’s close of 109,513 points.
Stock analysts said upbeat economic indicators on surging exports, remittances and foreign exchange reserves as well as the government’s talks with the opposition Pakistani Tehreek-e-Insaf (PTI) party played a catalyst role in the rally.
“Stocks’ bullish record led by scrips across the board as investor weigh falling lending rates after fall in government bond yield and easing political noise,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.
Mehanti’s comments came hours after the Pakistani government held a first round of talks with jailed former prime minister Imran Khan’s PTI party to address political polarization in the country.
Pakistan has remained gripped by political unrest and uncertainty since Khan’s ouster from power through a parliamentary no-confidence vote in April 2022, which has also exacerbated Pakistan’s economic hardships.
However, Pakistan’s economic indicators have improved and the stock market has surged significantly, reaching a historic high of 117,039 points this month. Though the market shed around 9,000 points last week, but it recovered on Friday by registering a sharp increase of more than 3,000 points.
Pakistan’s central bank this month cut its key interest rate by 200 basis points to 13 percent, marking the fifth straight reduction since June. The country’s annual consumer inflation also slowed to 4.9 percent in November, lower than the government’s forecast and the lowest in nearly six years. This was down from 38 percent last year.
Data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.
Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.
Pakistan recorded an increase of 29.1 percent year on year in workers remittances, which amounted to $2.9 billion in November, according to the central bank data. The inflows rose by 33.6 percent to $14.8 billion from July till November, compared to $11.1 billion received during the same period last year.
PM hails Pakistan for ‘unstoppable, unbeatable’ performance in South Africa ODI series
- Green Shirts thrashed South Africa 3-0 after losing Twenty20 series 2-0
- Pakistan will now play three Tests against South Africa later this month
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday praised the Pakistan cricket team for winning a three-match One Day International (ODI) series against South Africa, describing their performance as “unstoppable and unbeatable.”
The Green Shirts completed a series clean sweep over South Africa in the third ODI at the Wanderers Stadium on Sunday, with rising star Saim Ayub smashing his second century of the series and his third from five innings.
The left-handed opening batsman made a sparkling 101 off 94 balls in a Pakistan total of 308 for nine. Heinrich Klaasen thrashed 81 off 43 balls for South Africa, but the hosts were beaten by 36 runs chasing an adjusted target of 308 because of rain.
“Unstoppable and unbeatable!” Sharif remarked in a post on X. “Congratulations to Team Pakistan on an outstanding 3-0 ODI series victory against South Africa.”
The prime minister also praised the Pakistan Cricket Board chairman for the team’s performance.
“Well done, boys! Your determination, skill, and teamwork under the leadership of the PCB Chairman Syed Mohsin Raza Naqvi have made the entire nation proud,” he said.
“Keep raising the green flag high!“
South Africa won the T20I series 2-0 after the third match was washed out on Dec. 14. The ODI series win comes ahead of the upcoming International Cricket Council (ICC) Champions Trophy, which Pakistan will hosting in February and March 2025.
Pakistan will also play three Tests against South Africa later this month.
Government, Imran Khan party hold first round of formal talks, next session on Jan. 2
- Negotiations began after Khan threatened civil disobedience, seeking the release of political prisoners
- There are growing concerns among PTI that Khan may face military trial for 2023 riots involving followers
ISLAMABAD: The government and the opposition Pakistan Tehreek-e-Insaf (PTI) party of former Prime Minister Imran Khan held the first round of formal negotiations on Monday in a bid to ease prolonged political tensions, with the PTI asked to present its demands in writing at the next session on Jan. 2.
Khan’s ouster in a parliamentary vote of no-confidence in 2022 has plunged the country into long-term political crisis, particularly since the PTI founder was jailed in August last year on corruption and other charges and remains behind bars. His party and supporters regularly hold protests calling for his release, with many of the demonstrations turning violent, including one last month in which the government says four troops were killed and the PTI says 12 of its supporters died.
Khan has previously rejected talks with the government, saying his party would only talk to the ‘real powerbrokers’ in Pakistan, the all-powerful army, but earlier this month he set up a negotiating committee of top party leaders to open dialogue with the government for the fulfilment of two demands: the release of political prisoners and the establishment of judicial commissions to investigate protests on May 9 last year and Nov. 26 this year, which the government says involved his party supporters, accusing them of attacking military installations and government buildings.
The talks open as Khan has threatened a civil dissidence movement and amid growing concerns he may face trial by a military court for allegedly inciting attacks on sensitive security installations during the May 9 protests.
“Since some members of the opposition could not join the talks today, we have decided to hold the next meeting on Jan. 2,” National Assembly Speaker Ayaz Sadiq, who was chairing the meeting, said at the end of the first round of negotiations. “The opposition will also present a charter of demands in the meeting.”
He said the talks were held in a “cordial” environment, calling them vital to end “political polarization” in the country.
Senator Irfan Siddiqui, also from the government side, said both sides agreed parliament was the appropriate forum to resolve political differences and emphasized that the negotiation process should continue.
Speaking to the media after the talks, Khan’s close aide, Asad Qaiser, said the PTI team had asked the government to release all political prisoners, including the former prime minister, and form a judicial commission chaired by senior Supreme Court judges to probe the May 9 and Nov. 26 protests.
“We should be allowed to hold a meeting with Imran Khan,” Qaiser said. “He is our leader. We will move forward with his instructions.”
He said the government had said it would arrange the meeting but it was not clear when.
The negotiations came days after Pakistan’s military announced prison sentences for 25 people involved in the May 9 protests, which PTI has demanded be investigated. The PTI has also repeatedly said it fears the government and military will try Khan in army courts for the May 9 violence. He is already being tried for the violence in a civilian court.
