In an era where technology continuously reshapes business landscapes, Singapore’s food and beverage (F&B) sector stands out as a beneficiary of digital advancement, particularly through the instrumental role of food delivery platforms. A recent report by Capital Economics, commissioned by Deliveroo, underscores this transformation, highlighting the substantial impact these platforms have on the local economy and the adoption of digital tools by restaurants.
Digital Transformation in the F&B Industry
Accelerated Digital Adoption
The findings from the report are telling, with 57% of restaurants in Singapore embracing digitalisation, a movement supported by the Infocomm Media Development Authority’s (IMDA) observation that the city-state’s digital economy has impressively doubled over five years by 2023. This swift adoption is largely credited to the functionalities and data analytics provided by food delivery platforms like Deliveroo, which enable F&B businesses to optimise their operations and reach untapped markets.
- Example of Success: Teyst Group, a notable participant in this digital shift, saw a staggering 420% growth in orders after integrating pick-up options, a strategy formulated based on Deliveroo’s data analytics.
Jonathan Yang, CEO of Teyst Group, praised the platform’s contribution, stating, “Thanks to the advice from Deliveroo, we were able to reach untapped customers.”
Broadening Customer Reach
Moreover, these platforms serve beyond their traditional scope of facilitating food deliveries; they act as powerful marketing tools that aid F&B outlets in expanding their customer base. The report illuminates this aspect with 25% of surveyed restaurants extending their physical premises to accommodate the growing demand.
- Innovative Marketing Tools: Deliveroo’s Marketer and Partner Hub are highlighted for their role in enhancing business visibility and providing actionable insights into customer behaviour and sales trends. Poke Theory’s use of targeted offers through Partner Hub, for instance, resulted in a remarkable return on investment, with a $1 spent to $12.50 earned ratio.
Joey Lee, Co-Founder of Poke Theory, attested to the significance of digitalisation, asserting, “Partnering with Deliveroo has taught us that digitalisation is critical in the F&B industry.”
Economic Contributions and Growth
Stimulating Economic Activity
The economic contributions of food delivery platforms extend far beyond individual restaurant success stories. In 2022, Deliveroo alone supported S$139 million in gross value added (GVA) to Singapore’s economy and was instrumental in creating 5,250 jobs. The ripple effect of increased restaurant sales due to Deliveroo’s intervention also saw an additional S$67.8 million spent on suppliers, bolstering 210 jobs across various sectors.
- Job Creation and Economic Growth: The estimated increase in economic activity attributable to Deliveroo in the restaurant sector amounted to around S$54 million in GVA, supporting an additional 4,700 jobs.
Jason Parke, General Manager of Deliveroo Singapore, expressed pride in the platform’s role in bolstering the local economy, particularly by fostering the F&B sector’s continued technological advancement. “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 noted.
Enhancing Customer Experience through Campaigns
Regular platform-wide campaigns run by Deliveroo have significantly contributed to raising customer awareness and engagement. Acai Affair’s involvement in a June 2023 marketing campaign is a case in point, with the brand experiencing a 2.5x increase in sales for that month. This momentum persisted, resulting in an over 60% year-on-year increase in sales and a 50% growth in their customer base.
Anna Ng, co-founder of Acai Affair, expressed gratitude towards Deliveroo’s marketing efforts, saying, “Deliveroo’s marketing campaigns have also been greatly helpful in exposing our brand to more people.” She further emphasized the importance of aligning their offerings with customer preferences, facilitated by Deliveroo’s comprehensive data analyses.
The symbiosis between Singapore’s F&B sector and food delivery platforms like Deliveroo represents a pioneering model of digital partnership. This collaboration not only fosters technological adoption and business growth but also significantly contributes to the national economy through job creation and increased economic activity. As Singapore continues to navigate the digital age, the F&B industry’s embrace of technology and digital tools sets a benchmark for other sectors to follow, promising a future where digitalisation is at the heart of business innovation and success.
Featured Image courtesy of DALL-E by ChatGPT