Track: Operations Management

Abstract

Cloud kitchens are non-conventional food businesses that do not offer dine-in services to its customers. In comparison to traditional food business, the setup offers higher profitability to business owners due to overall reduced costs, hence it is an advantageous model. It also has the potential to increase customer satisfaction since it can diversify the food options offered by the food industry. In the Philippines, these models are starting to grow in the hospitality industry. The subject of this study is a local cloud kitchen that has recently started – Lina’s Kitchen. It has a problem of not reaching the target profit per day. The study has utilized multiple tools, such as root cause analysis and process documentation, to identify the areas of improvement of business processes. From these tools, improvements on the end-to-end process are proposed. These include dissemination of sensing surveys and purchasing of ingredients weekly, early menu posting, more cost-efficient delivery methods, and hiring manpower. The actual implementation of some recommendations shows that the target is reached. Overall, as a business that operates in the food industry, the business must have customers considered as these points for improvement are addressed by the enterprise.