Image credits: The Star Malaysia
Food delivery services is set to see continuous growth, with an even share between restaurant-owned and third-party platforms.
So with your own delivery service, you can effectively unlock more reach and sales, beyond what third-party platforms can offer.
Definitions:
Restaurant-to-Consumer: Direct meal delivery by restaurants to customers.
Platform-to-Consumer: Delivery services facilitated by third-party service providers.
Did you know that restaurant-owned services hold 71.1% share in the Malaysian food delivery market (worth US$137 million)?
The F&B big boys have been spearheading this digital revolution, expanding beyond the limitations of physical stores by turning mobile devices into their retail space.
Now just imagine the opportunities. The large consumers and revenues you can tap into through your own online shop.
Source: Statista
Source: Statista
The projections of user penetration for Platform-to-Consumer in the coming four years will more than double from 6.5% to 16.1%. However, the Restaurant-to-Consumer user penetration will still lead at 19.4% in 2024 from 14.6% in 2020. This data however, is based on studies made before the Corona Pandemic.
This Corona Pandemic will push society as a whole, to a tipping point of a mass food delivery lifestyle adoption. Millions of Malaysians, for the very first time, are placed under lock down with little options for dining besides their possible limited culinary repertoire.
“The tipping point is that magic moment when an idea, trend, or social behaviour crosses a threshold, tips, and spreads like wildfire.”
Source: Google Trends (Updated May 3, 2020)
A recent search on Google Trends on May 3rd, 2020 confirmed this tipping point with the keyword phrase “Food Delivery” search on Google reaching its all time high during the the start of the Movement Control Order late March. In this search you will find Penang leading the trend followed by Selangor and Putrajaya.
Click here to view details to this food delivery trend.
Though it is premature to conclude that this would be a new norm in Malaysia, the chart does indicate a larger acceptance and adoption to food delivery.
Paradise Dynasty, a previously offline-only food retail chain, opened its doors to the online market on 14th April 2020. They seized the opportunity at the right time and have been receiving online orders every day.
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