SINGAPORE: In a recent report commissioned by Deliveroo, Capital Economics reveals that food delivery platforms are acting as a catalyst for restaurants in Singapore, driving a surge in technology adoption.
The report shows that 57% of restaurants have embraced digitalisation, and according to the Infocomm Media Development Authority (IMDA), Singapore’s digital economy “doubled in five years in 2023.”
Digitalisation in the food and beverage sector
One standout example of digitalisation is seen in the food and beverage (F&B) sector’s use of data analytics. Restaurants partnering with delivery platforms like Deliveroo leverage digital tools to gain insights into optimising their operations.
Teyst Group, for instance, experienced 420% growth in orders after introducing pick-ups, a move inspired by Deliveroo’s data-driven insights.
Jonathan Yang, CEO of Teyst Group, commended Deliveroo, stating, “Thanks to the advice from Deliveroo, we were able to reach untapped customers.”
Expanding businesses’ customer base
Delivery platforms aren’t just facilitating deliveries; they also function as marketing platforms, helping F&B merchants grow their customer base.
The impact is evident, with 25% of surveyed restaurants expanding physical establishments to serve more customers.
Tools like Deliveroo Marketer and Partner Hub are crucial in exposing businesses to a wider audience and providing valuable insights into sales data; new customers gained, and menu views.
Poke Theory, a local favourite, exemplified the effective use of Partner Hub’s targeted offers function, achieving an outstanding $1 spent to $12.50 earned ratio. Deliveroo’s pick-up campaigns further boosted their sales by 500% in Q3 2023.
Joey Lee, Co-Founder of Poke Theory, emphasised the importance of digitalisation, stating, “Partnering with Deliveroo has taught us that digitalisation is critical in the F&B industry.”
Regular platform-wide campaigns run by Deliveroo contribute to greater awareness among customers.
Acai Affair’s participation in a Jun 2023 marketing campaign resulted in a 2.5x growth in sales that month alone. The success story continued, with an average of over 60% year-on-year increase in sales and a 50% year-on-year growth in their customer base.
Acai Affair’s co-founder, Anna Ng expressed gratitude for Deliveroo’s tools, which help them keep up with customer demands and preferences.
She said, “Our customers will always remain at the heart of our business. Through comprehensive analyses of our operational data from the platform, we’re able to learn what our customers love and evolve our menu accordingly.”
Ng also praised Deliveroo’s marketing campaigns, stating, “Deliveroo’s marketing campaigns have also been greatly helpful in exposing our brand to more people.”
The impact of food delivery platforms on Singapore’s economy is substantial. In 2022 alone, Deliveroo supported S$139 million of gross value added (GVA) and created 5,250 jobs.
The estimated increase in economic activity attributable to Deliveroo in the restaurant sector is around S$54 million in GVA, supporting an additional 4,700 jobs. Increased restaurant sales translated to an extra S$67.8 million spent on suppliers, supporting 210 jobs across the economy.
Jason Parke, General Manager of Deliveroo Singapore, expressed pride in contributing to the local economy, “particularly through encouraging F&B sector which has continued to increase its adoption of tech solutions to improve growth and drive operational efficiency.”
“Through our digital analytics and promotional marketing tools, we have observed how merchants have leveraged new data and insights when making instrumental commercial decisions,” he said. /TISG