Affordable ramen served at food courts
According a report by The World Bank, Malaysia, Thailand, and Singapore are experiencing a slowing economy1. Malaysia’s economic growth rate eased in 2016 while Singapore’s economy contracted2. As a result, restaurants operating in these Southeast Asian countries were impacted. For instance, Singapore’s restaurant sales declined by 9.8 per cent in March 2016 as compared to March 20153.
Through time, restaurateurs discovered that relying solely on serving quality and delicious meals are not enough to keep restaurants afloat during an economic downturn. To remain sustainable, restaurants considered engaging new business models such as tapping onto partnership opportunities in the F&B industry to reach out to more consumers and ultimately, increase sales.
Food delivery services are gaining popularity in Southeast Asia. This could be attributed to consumers prioritizing convenience, coupled with adoption of a digital and mobile lifestyle4. According to the ASEAN Briefing Research, revenue for online food orders in the region was forecasted to exceed US$1 billion in 2016 and grow by almost 35 per cent annually over the next five years5. Majority of restaurants collaborated with domestic online ordering and delivery service providers in order to expand sales channels and increase revenue6. foodpanda, a food delivery service provider that works with restaurants in the Southeast Asia, collaborating with over 1,000 restaurants and delivering in 24 countries including Singapore, Thailand, and Malaysia7. Restaurants that partnered with foodpanda in Singapore include Long Chim, Peony Jade, Mouth Restaurant, and Michelin-starred restaurant The Song of India8. Similarly, Malaysian restaurants such as Village Roast Duck and Madam Kwan’s have partnered with them for efficient food deliveries9.
Online reservation applications for dining are implemented by restaurants to increase staff productivity and enable online reservations10. This results in lowering labor cost and gaining more customers. It enables restaurants to conduct direct marketing to customers through their database11. A popular reservation service provider that restaurants partnered with is Quandoo. It has partnered with 13,500 restaurants globally12. For instance, Singapore’s Latteria Mozzarella Bar implements Quandoo’s services to manage reservations and has benefited from the service greatly. The partnership helps the restaurant to save time, increase website traffic, and boost online reservations by 60 per cent13. Additionally, restaurants in Malaysia and Thailand partner with Malaysian startup TableApp to manage their reservations more efficiently. TableApp has collaborated with 500 restaurants in Malaysia and Thailand and has helped restaurants seat more than 200,000 diners14.
Food courts are thriving across ASEAN due to the variety of offerings to consumers at a more affordable price15. Restaurants are opening spin-off outlets in food courts to attract a wider market segment of consumers and increase sales. For instance, Astons and Pepper Lunch have affordable outlets at food courts of major malls in Malaysia, such as Mid Valley and IOI City Mall16. In 2013, ramen restaurant Ippudo opened its first international quick service outlet Ippudo Express at Asia Square Food Garden in Singapore to provide quick and affordable ramen bowls for working adults at the CBD area17.
References
1 The World Bank. (2016) Thailand Weakest ASEAN Economy in 2016. [online] Available at: https://aecnewstoday.com/2016/thailand-weakest-asean-economy-in-2016-world-bank/
2 Bloomberg Markets. (2016). Bleak Exports Haunt Southeast Asian Nations Bracing for Trump. [online] Available at: https://www.bloomberg.com/news/articles/2016-12-27/bleak-exports-haunt-southeast-asian-nations-bracing-for-trump
3 The Straits Times. (2016). Restaurants’ takings suffer amid slowing economy. [online] Available at: http://www.straitstimes.com/singapore/restaurants-takings-suffer-amid-slowing-economy
4 ASEAN Briefing. (2017). Hungry for More: A Taste of ASEAN’s Foodservice Industry. [online] Available at: http://www.aseanbriefing.com/news/2017/01/03/hungry-for-more-a-taste-of-asean-foodservice-industry.html
5 ASEAN Briefing. (2017). Hungry for More: A Taste of ASEAN’s Foodservice Industry. [online] Available at: http://www.aseanbriefing.com/news/2017/01/03/hungry-for-more-a-taste-of-asean-foodservice-industry.html
6 ASEAN Briefing. (2017). Hungry for More: A Taste of ASEAN’s Foodservice Industry. [online] Available at: http://www.aseanbriefing.com/news/2017/01/03/hungry-for-more-a-taste-of-asean-foodservice-industry.html
7 Today. (2016). Foodpanda offers two weeks’ free delivery. [online] Available at: http://www.todayonline.com/lifestyle/food/foodpanda-offers-two-weeks-free-delivery
8 SGnow. (2016). Now you can eat fancy meals from this Michelin-starred restaurant without even leaving the house. [online] Available at: http://sg.asia-city.com/tech/news/now-you-can-eat-fancy-meals-from-this-michelin-starred-restaurant-without-even-leaving-the-house
9 Collectoffers blog. (2016). Don’t Miss A Chance To Save When Ordering Your Favorite Food! [online] Available at: https://blog.collectoffers.com/tag/online-food-delivery-malaysia/
10 Restaurant Engine. (2016). The Best Online Booking App For Your Restaurant Website. [online] Available at: http://restaurantengine.com/online-booking-app/
11 Restaurant Engine. (2016). The Best Online Booking App For Your Restaurant Website. [online] Available at: http://restaurantengine.com/online-booking-app/
12 Yahoo Finance. (2016). Quandoo Reports 22 Million Seated Diners in More Than 13,500 Restaurants Establishing Itself as Market Leader in Seven Countries. [online] Available at: http://finance.yahoo.com/news/quandoo-reports-22-million-seated-082200587.html
13 Computer World. (2016). Why F&B businesses in Singapore and HK need to leverage online reservation platforms. [online] Available at: http://www.computerworld.com.sg/print-article/98497/
14 Tech in Asia. (2016). 14 Malaysian startups poised for breakout in 2016. [online] Available at: https://www.techinasia.com/14-malaysian-startups-poised-breakout-2016
15 ASEAN Briefing. (2017). Hungry for More: A Taste of ASEAN’s Foodservice Industry. [online] Available at: http://www.aseanbriefing.com/news/2017/01/03/hungry-for-more-a-taste-of-asean-foodservice-industry.html
16 Have Halal Will Travel. (2016). 10 HALAL FOOD CHAINS YOU HAVE TO TRAVEL TO MALAYSIA FOR (NOPE, NOT HALAL IN SG). [online] Available at: http://www.havehalalwilltravel.com/blog/10-halal-food-chains-you-have-to-travel-to-malaysia-for-nope-not-halal-in-sg/
17 Urban Journey. (2016). UrbanJourney’s Guide to Asia Square. [online] Available at: http://urbanjourney.com/food-and-drink/asia-square-restaurants-797