Recent findings by Capital Economics, on behalf of Deliveroo, highlight a significant trend: food delivery platforms are becoming key drivers in pushing the restaurant industry towards greater digital adoption. This movement is perfectly aligned with Singapore’s ambitious digital economy goals, which have seen remarkable growth, doubling in size over the past five years.
Digitalization: A Recipe for Success
In the traditionally conservative food and beverage (F&B) sector, a digital revolution is underway. Thanks to partnerships with Deliveroo, a notable 57% of restaurants have embraced digital tools to enhance their business operations. This digital shift is vividly illustrated by the strategic application of data analytics, enabling eateries to harness insights from Deliveroo’s platform to refine their services and offerings.
A standout example of this digital transformation is The Daily Cut, under the Teyst Group umbrella. By tapping into the analytical prowess of Deliveroo, The Daily Cut was able to introduce a pick-up service, catapulting their order volume by an impressive 420%. Jonathan Yang, CEO of Teyst Group, expressed his satisfaction, stating, “Leveraging Deliveroo’s data-driven insights to strategically introduce self pick-up as an additional avenue for customers’ orders has been one of the best pivots we’ve made in our business approach for The Daily Cut. Thanks to the advice from Deliveroo, we were able to reach untapped customers. We’re glad to have chosen Deliveroo as our exclusive delivery partner.”
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Broadening Horizons and Boosting Sales
Deliveroo’s impact extends beyond just operational improvements; it plays a pivotal role in helping its partner restaurants reach new customers. Approximately 25% of the restaurants surveyed reported expanding their operations to accommodate the surge of new customers, a growth facilitated by their bolstered digital presence on Deliveroo’s platform.
Furthermore, Deliveroo’s marketing tools, such as Deliveroo Marketer and Partner Hub, provide a robust platform for restaurants to showcase their offerings, driving sales and attracting new clientele. Poke Theory, a well-loved local brand, saw a significant return on investment, with every dollar spent on targeted offers generating $12.50 in revenue. Their engagement in Deliveroo’s pick-up campaigns led to a 500% increase in sales in the third quarter of 2023. Joey Lee, Co-Founder and Director of Poke Theory, remarked, “Partnering with Deliveroo has taught us that digitalisation is critical in the F&B industry. We’ve grown so much as a business since joining the platform, all thanks to Deliveroo’s wide range of functions that support us in better capturing a wider pool of audiences beyond our dine-in customers.”
Fueling Economic Growth
Deliveroo’s contributions to Singapore’s economy are significant, with the platform supporting S$139 million of gross value added (GVA) and 5,250 jobs in 2022. The platform’s operations have not only enhanced the restaurant sector with an additional S$54 million in GVA and 4,700 jobs but also stimulated S$67.8 million in spending on suppliers, supporting an additional 210 jobs across the economy.
“Deliveroo Singapore is proud to have contributed 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 . We remain committed to providing our merchants with the best-in-class support to help them continue to expand their businesses,” Jason Parke, General Manager of Deliveroo Singapore, added.
This report underscores the transformative effect of digitalization in the F&B industry, with Deliveroo leading the charge in fostering growth, efficiency, and wider reach for restaurants across Singapore.
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