Top Cloud Kitchen Delivery Services in Malaysia: GrabFood, Foodpanda & More

What is a Cloud Kitchen in Malaysia?

A cloud kitchen in Malaysia, often referred to locally as "dapur awan," is a professional food-production facility set up exclusively for preparing delivery-only meals. Unlike traditional restaurants, these establishments do not offer dine-in services, focusing entirely on fulfilling orders placed through online food aggregators, websites, or mobile apps. This business model has gained significant traction due to its operational efficiencies and adaptabilit.

Many operators report that, by foregoing dine-in space and front-of-house staff, their initial capital and monthly operating expenses can be lower than those of traditional restaurants—but exact savings depend on location, menu complexity, and scale. According to Euromonitor International’s 2023 Cloud Kitchen Market Report, cloud kitchens can reduce startup costs by up to 45% compared to traditional dine-in concepts.

Cloud kitchen models in Malaysia generally fall into two main categories:

• Shared Kitchens: Also known as commissary kitchens, these are large kitchen spaces equipped with commercial-grade facilities that are rented out to multiple F&B brands simultaneously. Each brand operates within its designated station but shares common areas like storage and washing stations. This model is particularly attractive for new entrants or concept tests due to lower initial investment.

• Dedicated Kitchens: A single brand or company operates its own private, delivery-only cloud kitchen facility. This offers more control over operations, branding, and kitchen layout customization, though it requires a higher upfront investment than a shared space.

Various surveys pointed to double-digit growth in urban online food orders, suggesting strong potential for cloud kitchens, though figures vary by city and platform.

What makes the cloud kitchen model so appealing to Malaysian F&B entrepreneurs in the current market? According to JLL’s report, operators benefit from lower startup costs and rapid scalability. For instance, a brand can launch delivery-only nasi lemak or Hainanese chicken rice concepts via a cloud kitchen, test demand on aggregators, and then decide on broader expansion without the capital intensity of a traditional dine-in location.

Read more: Cloud kitchens heat up in Asia Pacific (jll.com.tw)

Registration, Licensing & Permits of Cloud Kitchens in Malaysia

Launching a cloud kitchen in Malaysia involves several critical steps, ensuring compliance with local regulations and setting a strong foundation for your delivery-only F&B business.

Business Registration

Register your business with the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia – SSM) as a sole proprietorship, partnership, or private limited company (Sdn. Bhd.) (SSM).

Licensing and Permits

• Food Handling Certification: Food handlers are required to complete an MOH-approved course (see MOH’s official training listings) before starting operations.

• Business Premise License & Signboard License: Obtain a business premise license from the local council (e.g., DBKL for Kuala Lumpur, MBPJ for Petaling Jaya). A signboard license is needed only if you plan external signage.

• Halal Certification (Optional but Recommended): If targeting the Muslim market, seek Halal certification from JAKIM (JAKIM).

Food safety regulations are stringent. Beyond certification, ensure proper hygiene, temperature control, pest management, and waste disposal in compliance with the Food Act 1983 and Food Hygiene Regulations 2009. Inspections by the Ministry of Health cover separate handling of raw/cooked items, refrigeration standards, and grease traps; non-compliance can result in fines or closure.

Leading Cloud Kitchen Partners: GrabFood & Foodpanda

For cloud kitchen operators in Malaysia, partnering with platforms like GrabFood and Foodpanda offers access to large customer bases and established delivery networks. Comparing their offerings helps you choose the best fit.

GrabFood: Malaysia’s Super App Advantage

GrabFood is part of Grab’s all-in-one ecosystem, making it a popular choice for urban consumers in Malaysia. For cloud kitchens, partnering with GrabFood means tapping into a massive user base that already uses Grab for transport, payments, and deliveries. Merchants gain access to a robust portal, marketing tools like "Grab Signatures," and seamless POS/API integration. Its wide delivery radius and account manager support make it ideal for scaling brands in dense city areas. Grab often offers seasonal promotions and incentives for new partners—especially during food festivals or campaign launches.

Foodpanda: Fast, Flexible & Expanding

Foodpanda remains a strong competitor in Malaysia’s food delivery market with a stronghold in key urban zones like Kuala Lumpur and Penang. Its platform emphasizes speed, variety, and customer experience. For merchants, Foodpanda offers customizable marketing campaigns, its own curated “Pandapicks” feature for top performers, and a streamlined Partner Hub for onboarding. POS integrations and automation tools help cloud kitchens handle high-volume orders efficiently. Foodpanda is especially attractive for new players thanks to its ease of setup and active support in emerging towns and regions.

Many Malaysian cloud kitchens list on both platforms to gather market data, test marketing outcomes, and then optimize operations based on performance and customer behavior. However, demographic differences also affect user preferences. For example, university districts or areas with high footfall (e.g., tech hubs, office districts) may show better performance on one platform over the other. For example, younger users may prefer Foodpanda’s UI and promos, while office professionals may favor GrabFood for convenience.

Read more: 5 Benefits Restaurants Can Enjoy with QR Code Ordering Systems (eats365pos.com)