The world has experienced severe economic turmoil as a result of the coronavirus pandemic, with many businesses struggling to keep up with the sharp lifestyle changes that have occurred (Lee & Trimi, 2021). One such adjustment is adapting to various online food delivery services. Ordering food online has substantially revolutionized restaurant culture and provided people worldwide substantially revolutionized restaurant culture and provided people all over the world with a new, unbelievable level of comfort (Gupta, 2019). This change paved the way for acceptance of the new cloud kitchen business model. Only food is produced in cloud kitchen locations. Kludio was the first to launch a cloud kitchen company in 2019 (Gomes, 2020). Being Bangladesh's first multi-brand cloud kitchen, they take pride in operating four different food brands—Dough on the Go, Hero Burger, Frybox, and Deshio—within the same structure and using their own designed software (Startup, 2021-07-05). Since the pandemic, online delivery services have become more popular (Gomes, 2020), and trend is projected to continue. Indeed, it is predicted that cloud kitchens will continue to gain popularity in Bangladesh because customers may find it appealing to obtain whole meals from the comfort of their homes.

In Bangladesh, a significant portion of the population follows halal dietary norms, which permit the consumption or use of a product or service under Islamic law (Alam et al., 2024). As such, food services, including cloud kitchens, are halal by default, making halal cloud kitchens very popular. However, despite their growing popularity, existing studies have not adequately explored how various factors, such as food quality, pricing, packaging, and delivery, affect the success of halal cloud kitchens in Bangladesh. This study addresses this gap by identifying the critical success factors and providing actionable insights for industry practitioners and stakeholders.

Due to the compulsory adoption of lockdowns and social isolation measures during the pandemic, there has been a boost in online food delivery businesses (Bender et al., 2022). As consumers became increasingly cautious about dining out, cloud kitchens gained popularity owing to their focus on contactless delivery and hygiene (Bender et al., 2022). Each innovative idea or business strategy requires time to develop. Traditional restaurants with physical locations compete globally with cloud-based restaurants (McCarthy, 2023-08-29). The business model of cloud kitchens has great potential in Bangladesh, although it is still a relatively new concept (Ahmed Khan et al., 2022).

Price

Consumer purchase decisions are influenced by various variables, including personal, social, economic, and psychological ones (Kholis & Ma'rifa, 2021). Consumers select the desired product price according to their means, and the appropriate price entices customers to purchase a specific product. Price is a unit of measurement used to purchase various goods and services (Supriatna et al., 2019). Hence, the value of a good or service can be expressed in terms of its price. Correct pricing usually encourages customers to buy a product. However, if customers assume that the price set for a specific product is unfair, they lose interest in the product (Supriyanto et al., 2021). (Kotler et al., 2018) stated that consumers consider price before the value of a good or service is expressed in terms of its price (Kotler et al., 2018). Hence, when purchasing a product, consumers are concerned about the price when evaluating a product’s value. Given that people frequently compare their transactions with those of comparable reference parties using relative outcomes, price differences are considered unfair (, 2019). As seen in various studies, price is a very sensitive and influential variable for making purchase decisions for any individual product; therefore, it can be assumed that price can also be a potential influential variable for ordering food. Hence, it can be considered as a variable that influences the success of restaurants and halal cloud kitchens in Bangladesh.

Food Delivery Time

Consumers are increasingly embracing online services for a variety of reasons, such as more disposable funds, growing trust in electronic payments, and a surge in the number of sellers and the size of their distribution networks (Charlene Li et al., 2020). Charlene Li et al. (2020) conducted an interdisciplinary evaluation that combines several studies on a wide range of topics affected by the growing popularity of online meal delivery services to examine the opportunities and problems associated with the increasing use of online services. This study also identified potential actions for all stakeholders, including practitioners in the online meal delivery industry, policymakers, consumers, and academics, to maximize the positive and mitigate the negative impacts. Technological advancements have a significant impact on how restaurants operate ("The Importance of online ordering and delivery for restaurants," 2021). Most people spend significant amounts of time on different online platforms. Consequently, customers are highly engaged in ordering food online ("The importance of online ordering and delivery for restaurants," 2021). Therefore, the next issue after online ordering is the timely delivery of food. In this case, the delivery time might have a significant effect on customer satisfaction. In the e-commerce industry, delivery time is a critical variable for maintaining and increasing customer satisfaction (Zulkarnain et al., 2015). Fast deliveries usually result in satisfied customers who are more likely to make subsequent purchases ("Why is quick delivery important for your e-commerce business," 2022). Regardless of the transportation system or weather conditions, customer satisfaction is affected if the delivery takes longer than expected (Dholakia & Zhao, 2010).

Similarly, Internet food delivery services have a significant impact on how customers perceive restaurant businesses (Nayan & Hassan, 2020). Delivery issues are the main barriers to food e-commerce. Since foods may deteriorate in quality if they take longer than the usual delivery time, they must be delivered quickly (Morganti et al., 2014). The relationship between food quality and satisfaction among consumers is also seen in fast-food restaurants (Law et al., 2004). Therefore, when restaurants plan to provide satisfactory service to consumers, they must ensure satisfactory food quality and delivery time (Morganti et al., 2014). Consequently, considering the repercussions of delivery time is critical for the success of both online food delivery and halal cloud kitchen businesses.

Food Quality

Customers view restaurant food quality as mediated by menu content, appearance, dimensions, and selection (Liu et al., 2017). Using food qualities such as flavor, nutrition, and diversity, (Ha & Jang, 2010) assessed the effects of customers' food experiences on their pleasure and inclination to return to restaurants. In addition, (Sulek & Hensley, 2004) claimed that visual appeal, assurance, and dietary parameters are the most frequent characteristics customers use to evaluate food quality. They also found that customer satisfaction with a restaurant is closely related to the overall quality of the food, which, in turn, affects customers' propensity to make repeat purchases. In this manner, customers become loyal to restaurants that serve high-quality food. (Namkung & Jang, 2007) conducted explored customer behaviors in a restaurant environment and also found that food quality is essential for influencing customer satisfaction, purchasing intention, and restaurant recommendations, as well as for building a loyal customer base. Thus, food quality is not only a crucial condition for traditional restaurants but also highly influential for online food delivery businesses (Suhartanto et al., 2019).

Packaging

To remain competitive and sustain themselves in an environment of competitive pressure, businesses must focus on creative marketing tactics (Rundh, 2013). Consequently, companies are starting to consider packaging as an effective means to set their product offerings apart from those of their competitors (Rettie & Brewer, 2000). As it is the first thing a buyer perceives before deciding whether to purchase a product, packaging has become even more important from the consumer's perspective (Rundh, 2013). Owing to its expansiveness in developing new products, the food industry has introduced new performance standards into the packaging market (Wyrwa & Barska, 2017). Similarly, environmental friendliness has gained popularity among businesses and customers, which is primarily reflected in product packaging ("How important is eco-friendly packaging," 2020). Commitment to environmental friendliness suggests that a person or organization makes adjustments to have a less detrimental effect on the world. Owing to the increased interest in ethical and environmental issues in consumer behavior, many studies have examined various aspects of environmentally conscious consumption (Rokka & Uusitalo, 2008). To appease environmentally-concenred consumers, developing eco-friendly food packaging has become popular in the market (Ketelsen et al., 2020). Eco-friendly packaging is made from recycled materials, is risk-free for both people and the environment, and is simple to recycle. It uses components and manufacturing techniques that consume minimal energy and renewable resources ("What is eco-friendly packaging? and why it's important for your sales", 2019). (Rokka & Uusitalo, 2008) found that many consumers preferred packaging with an environmental label as an essential component of their purchase decisions. Hence, packaging influences consumer purchase decisions. Therefore, to assess the influential success variables of halal cloud kitchen businesses, packaging-related concerns, especially those regarding new trends in eco-friendly packaging, must be carefully observed.

Creative Advertisement

Currently, advertising is a crucial component of every business (Tray, 2019-08-28). (Jim & Alam, 2023) found that advertisements play a significant role in changing customers' purchasing behavior. Any restaurant that seeks to grow and generate consumers must invest in advertising (Scerbacov n.d.). One of the most critical implications of globalization in the business sector is the immense independence of consumers as global citizens. In contrast to the previous centuries, buyers have become increasingly important (Terkan, 2014). Therefore, to impress consumers, individual companies and brands continuously use various advertising methods. However, attracting the right customers is difficult; advertisements are frequently avoided by consumers because they are perceived as boring and repetitive (Hutter, 2015). It is undeniably true that creative ads can produce stronger changes in behaviors towards the advertisement, brand, or product, and attitudinal loyalty (Baack et al., 2016), despite some studies claiming to the contrary (Ang et al., 2007).

Creative advertisements feature unique ideas (Singam et al., 2014). Innovative advertisements draw consumers' attention more readily. Creativity is crucial in capturing people's interests and transmitting information in a compelling or challenging manner (Smith et al., 2008). Usually, consumers are more receptive to creative messages and advertisements (Baack et al., 2016). Therefore, manufacturers and retailers must develop fresh, innovative advertising ideas that capture and hold consumers' attention if they want to increase advertising effectiveness and, consequently, sales (Sameti & Khalili, 2017).

Based on the above discussion, restaurants must plan their advertising strategies carefully and aim to create new advertising strategies with innovative ideas that have the potential to capture customers' attention.

Discounts

Advertising for sales is a vital part of the overall marketing strategy and one of the most influential aspects of beating competition (Andriany & Arda, 2021-01). Discounting is a type of promotion that involves cutting the price of an item below its regular retail price to increase purchases (Pratt, n.d.). A price discount is a temporary decrease in a product's price relative to its regular price (Halik & Nugroho, 2022). Currently, online retailers offer customers a variety of purchase options, many of which frequently include discounts (Sheehan et al., 2019). Providing consumers with savings over a product's standard price, which is displayed on its packaging or label, is the goal of a price discount (Amanah & Harahap, 2018). Price cuts have been observed to significantly affect the target customers' propensity for impulsive purchases (Andriany & Arda, 2021-01). Discounts can encourage consumers to make major purchases, predict the promotion of rival businesses, and support volume trading (Belch & Belch, 2007). However, (Rosmaniar et al., 2020) found that while discounts influence purchases in a favorable way, its effects are not very significant. (Ittaqullah et al., 2020) also found that discounts have no noticeable impact on impulsive purchasing, suggesting that an increase in impulsive purchasing does not occur when numerous discounts are offered on certain goods at particular times.

The above discussion shows that while discounts influence consumer purchase decisions, additional verification is needed to determine whether it should be considered an influential variable in the success of halal cloud kitchen businesses.

From the discussion above, there is a clear lack of studies addressing how factors such as food quality, pricing, and packaging uniquely affect the halal cloud kitchen sector in the Bangladeshi context. In addition, practical insights are needed to guide industry practitioners in this region. This study seeks to fill these gaps by examining the critical success factors of halal cloud kitchens in Bangladesh and providing actionable recommendations.

This study aims to identify and gauge the impact of factors such as pricing, delivery time, food quality, packaging, advertising, and discounts on customer perceptions of the overall service provided by halal cloud kitchens in Bangladesh. The specific goals of this study were as follows:

Hypotheses and Conceptual Framework

H3: Food quality has a significant impact on the success of halal cloud kitchens.

H2: Fast delivery has a significant impact on the success of halal cloud kitchens.

H3: Food quality has a significant impact on the success of halal cloud kitchens.

H4: Packaging has a significant impact on the success of halal cloud kitchens.

H5: Creative advertising has a significant impact on the success of halal cloud kitchens.

H6: Discounts have a significant impact on the success of halal cloud kitchens.

Conceptual Framework

The conceptual framework is presented in Figure 1. Six factors that could affect the success of the halal cloud kitchen businesses were identified by the researchers after reviewing the literature on this topic. The first variable that could affect the success of halal cloud kitchens is the food price. Therefore, affordable prices may have a positive impact on customers towards the perspective of halal cloud kitchens in Bangladesh. The next most important variable identified was fast delivery. As this is an era of online food delivery services, fast delivery is necessary to ensure customer satisfaction. The third variable was food quality.

As the taste of served food is considered vital to customers, halal cloud kitchens must work on this aspect. The fourth variable in the model was packaging. As the delivery of food can be affected by packaging, packaging can also affect customers' perspectives. The fifth variable in the conceptual map was creative advertisements. Literature shows that creative advertisements can convince customers to purchase specific products. Consumers are more inclined to respond to an advertisement if it is related to them or is associated with their interests. The last variable identified in the literature review was offering attractive discounts or coupons to customers. Discounts are a proven method to increase customer awareness and interest. This may have a significant impact on the food industry. Therefore, researchers are addressing discounts as an influential variable for the success of halal cloud kitchens in Bangladesh.

Sampling and Data Collection

The snowball sampling technique was used in this study because it was useful to the researchers in terms of both cost and time. This method and allowed the researchers to choose the most suitable and convenient respondents for participating in the study through recommendations from the respondents themselves. Online surveys were used to collect data, and Google Forms was used to send the target respondents an original structured questionnaire. The sample size for this study was chosen in accordance with the requirements based on the variables considered (Riduwan & Kuncoro, 2008).

This study examined six variables: reasonable price, fast delivery, food quality, packaging, creative advertising, and discounts. Table 1 shows that 200 samples was used as the minimum sample size. Therefore, 320 responses were considered adequate for this study. Using snowball sampling, the researchers first contacted twenty-five respondents as a convenience sample based on their Facebook network. The recommendations provided by the first 25 respondents using the initial respondents’ Facebook networks were then used to select the next set of respondents. This process continued until all relevant data were gathered.

Data Analysis

This study used a quantitative approach. Questions were coded using a five-point Likert scale (1 = “strongly disagree” to 5 = “strongly agree”) to evaluate the six independent factors and the success of the halal cloud kitchen. After data collection, multiple regression analysis was used to formulate and test the hypotheses using a 5% significance threshold. The P-values were used to accept and reject the hypotheses were accepted or rejected and determine the coefficients that impact the dependent variable and how much the independent variables increased.

To collect data, 348 respondents were approached. Among the respondents, 14 did not know about the cloud kitchen concept, and 11 knew about cloud kitchens but had not ordered from them. Therefore, 323 respondents were considered to satisfy the minimum sample size determined by the sample size calculation above.

The significance level was set at 5% or 0.05 for testing hypotheses. Decisions about accepting or rejecting the hypotheses formulated earlier were made by comparing the P-values of the independent variables with the significance levels in this model. The P-value is crucial in deciding whether to accept or reject a hypothesis. The alternative hypothesis was accepted and the null hypothesis was rejected if the P-value was less than or equal to the significance level. To assess the likelihood of the response variable changing owing to variations in the independent variables, the coefficient of the predictor was employed. The outcomes of hypothesis testing, including the coefficient, a 95% confidence interval, and the P-value, are presented in Table 2.

The results in Table 2 indicate that of the six factors examined, food quality, packaging, and discounts were notably linked to the outcome variable. Conversely, reasonable prices, fast delivery, and creative advertising did not display a substantial connection with the success of halal cloud kitchens. The P-values for these three factors exceeded the 5% significance threshold, leading to the rejection of hypotheses H1, H2, and H5.

Coefficients

As shown in Table 3, food quality, packaging, and discounts have a positive relationship with the dependent variable. Conversely, reasonable price, fast delivery, and creative advertisements do not have a significant relationship with the dependent variable. The highest significant positive coefficient is .773 for packaging, which means an improvement of one unit in packaging will impact the dependent variable by 0.773. Accordingly, food quality and discounts were found to be significant factors in the dependent variable success of halal cloud kitchens, with the coefficients of .254 and .255, respectively.

a. Dependent variable

Model Summary

The model summary is shown in Table 4.

a. Predictors: (Constant), Advertisement, Packaging, Reasonable Price, Food quality, Fast Delivery, Discounts

b. Dependent Variable

ANOVAa The p-value from the ANOVA (Table 5) is .000, which is less than the level of significance ( ∝  = .05). As a result, all of the independent variables influence the dependent variable, and the model is credible.

Model Summary and Goodness of Fit Test

Multicollinearity occurs when two or more predictors in a multiple regression model are linearly associated with each other. The variance inflation factor (VIF) was used to measure the severity of multicollinearity among independent variables. VIF is a well-accepted factor for measuring multicollinearity among predictors. The maximum tolerable limit of the VIF was 5. A VIF greater than 5 (in some books, it is 10) indicates multicollinearity problems. In this study, all VIF values were substantially lower than the recommended maximum limit.

By analyzing the hypothetical scenario, food quality, packaging, and discounts were found to be the prime reasons for the success of the halal cloud kitchen. Other variables, such as reasonable prices, fast delivery, and creative advertising, were found to have minimal affiliations with the success of halal cloud kitchens.

Customers are more likely to visit restaurants with high-quality food (Liu et al., 2017)(Suhartanto et al., 2019). In halal cloud kitchens, food quality helps businesses expand through repeat purchases by customers (Namkung & Jang, 2007). As there is no physical space in cloud kitchens and direct interactions between buyers and sellers are not possible, food quality becomes the voice of the seller. This study found that food quality significantly contributes to the success of halal cloud kitchens. We suggest that practitioners take necessary steps to increase food quality, which may bring success to their businesses.

(Rundh, 2013) found that in purchasing products, packaging plays a significant role from the consumer's point of view because it is the first thing a consumer notices when interacting with a product. Moreover, good packaging signifies that the seller is conscious of the safety of customers, resulting in an increase in the customer’s perception of the product and seller (Wyrwa & Barska, 2017). In this study, packaging was found to be a significant factor behind the success of halal cloud kitchens. An eco-friendly packaging approach that ensures food safety can create a positive impression in customers. Additionally, superior value can be provided to customers through eco-friendly food packaging. Thus, it is recommended for halal cloud kitchen stakeholders to focus on packaging, which can become a key factor in their success. It is also recommended that businesses implement environmentally sustainable packaging options to guarantee food safety and demonstrate their dedication to sustainability. The use of recyclable or biodegradable materials such as paper-based or compostable containers can help reduce their impact on the environment. Furthermore, the addition of leak-proof and tamper-evident features can improve product safety and customer trust.

Discounts can encourage customers to make large purchases, anticipate the promotion of competitors' businesses, and stimulate sales volume (Belch & Belch, 2007). A temporary decrease in product price influences customers’ purchase intentions and has a significant impact on the impulsive purchasing behavior of target customers (Andriany & Arda, 2021-01). This study also found that maintaining the quality and quantity of discount offerings could play a decisive role in the success of halal cloud kitchens. Regular customers expect a price cut for their regular purchases, and customers purchasing in bulk amounts claim discounts. Moreover, price-sensitive consumers wait for discounts when purchasing their desired food items. Therefore, halal cloud kitchen stakeholders should focus on modified discounts, which could help them in customer retention and increase sales, impacting the success of their businesses. To use discounts effectively, it is critical to develop customized strategies that cater to certain customer groups. For example, volume-based discounts can be used to encourage bulk purchasers and increase sales and order values. Regular customers can benefit from loyalty programs or subscriptions that improve their retention and satisfaction. Seasonal or limited-time promotions may increase short-term sales by creating excitement. However, integrating these discount techniques with profit margin concerns is critical. This includes establishing discount limitations and constantly monitoring their influence on profitability to maintain long-term financial stability.

In conclusion, stakeholders should concentrate on a few critical areas. : food quality improvements, creative and safe packaging alternatives, and targeted discount programs for various customer types. Suppliers should contribute to these efforts by delivering highquality ingredients and packaging that are not harmful, and assuring consistent delivery. To ensure product quality, delivery partners must follow best practices for food handling and transportation. Looking ahead, all stakeholders must be educated about future trends, such as the rising demand for healthier food options and innovations in delivery technologies, to adapt strategies and maintain competitive advantage in an ever-changing market.

This study had certain limitations that should be considered in future investigations. The primary data collection utilized a non-probability sampling method in Dhaka City, specifically from a convenience sample. Consequently, it is not appropriate to generalize these findings to all regions of Bangladesh. To enhance the validity of future research, it is advisable to employ a larger sample size that encompasses a broader geographical region, including both rural and urban areas, using probability sampling.

Moreover, this study exclusively focused on six variables but did not consider several other potential influencing factors such as age, educational background, and various demographic variables that could affect the success of halal cloud kitchens. Thus, further research is warranted to incorporate these additional variables to gain a more comprehensive understanding of the factors contributing to the success of halal cloud kitchens.

Furthermore, it is worth noting that the survey primarily consisted of students, with a limited number of participants from diverse occupational backgrounds. Hence, future research should include a more diverse range of occupational backgrounds to provide a more representative perspective.

Future studies may expand on these findings by investigating additional variables or evaluating these drivers in different geographic or demographic situations. Further studies would benefit from incorporating extensive descriptions of the methodology and instruments as this can improve the robustness and usefulness of the research across many situations.

This study aimed to uncover the key determinants contributing to the prosperity of halal cloud kitchen businesses. A comprehensive literature review identified six potential predictors. Notably, food quality, packaging, and discounts were significant factors associated with the dependent variables. However, the remaining three variables were deemed insignificant.

The findings of this study provide detailed knowledge of the success drivers for halal cloud kitchens as well as practical advice for businesses and stakeholders. This study focuses on food quality, innovative packaging, and targeted discounts, and contributes to effective business tactics and operational decisions. Furthermore, it contributes to the broader field of online food services by emphasizing the specific elements essential to Bangladesh's halal market.