boosting your f&b business in 2016

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BOOSTING YOUR F&B BUSINESS IN 2016 INSIDE ONLINE ORDERING IN SINGAPORE The prevalence of online food ordering has made it necessary for all F&B businesses to keep up with the trends. This guide aims to provide a comprehensive overview of online ordering must-knows in Singapore and Asia-Pacific, providing F&B businesses with a head start for boosting business in 2016.

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Page 1: Boosting your F&B business in 2016

BOOSTING YOUR F&B BUSINESS IN 2016 INSIDE ONLINE ORDERING IN SINGAPORE

The prevalence of online food ordering has made it necessary for all F&B businesses to keep up with the trends. This guide aims to provide a comprehensive overview of online ordering must-knows in Singapore and Asia-Pacific, providing F&B businesses with a head start for boosting business in 2016.

Page 2: Boosting your F&B business in 2016

TABLE OF CONTENTS

CONTENTS

To F&B Owners in Singapore _______________________________________________________ 1

Online Ordering in Singapore ______________________________________________________ 2

Ready to Embark on Online Food Ordering? ___________________________________________ 4

Online Ordering Service Partners ___________________________________________________ 6

Delivery Partners _______________________________________________________________ 10

How to Get Started on Digital Marketing ____________________________________________ 11

Keep Your Customers Returning ___________________________________________________ 14

Other Important Things to Note ___________________________________________________ 15

Taking the First Step ____________________________________________________________ 16

Page 3: Boosting your F&B business in 2016

TO F&B OWNERS IN SINGAPORE

Page 1 Boosting Your F&B Business in 2016

TO F&B OWNERS IN SINGAPORE

The last quarter of 2015 has observed weakening sales and rising operating costs amidst an

increasingly competitive environment in Singapore and Malaysia’s retail markets including F&B

businesses. It is thus a continuing concern of every business owner to minimize costs and mitigate

the impact of operating costs on profits. Instead of expanding brick-and-mortar store space, many

F&B owners have turned to online ordering to increase sales. While online ordering and related

resources are widespread in Western markets, Asia Pacific has merely just caught up with the trend

of transiting to online ordering for food delivery business in the past couple of years. The key reason

for going online is the growing smartphone penetration rate in Asia Pacific. Top 10 countries include

Philippines, Malaysia, Australia, Hong Kong and right at the top, Singapore with a smartphone user

penetration of 83.1%. The extensive reliance on smartphones and apps prompts the need for online

food ordering on the go.

As the year comes to an end, Oddle has embarked on this white paper because we've always

been focused on helping all F&B business grow. As you will find out from the following sections, there

are a variety of strategies that can benefit your F&B business and most importantly, you will embark

on a journey to grow your business.

Yours sincerely,

Jonathan Lim

CEO Oddle

December 31, 2015

Page 4: Boosting your F&B business in 2016

ONLINE ORDERING IN SINGAPORE

Page 2 Boosting Your F&B Business in 2016

ONLINE ORDERING IN SINGAPORE

This section will give a brief overview of the short history and current major players in

Singapore’s fast-growing online food ordering landscape.

DELIVERY REINVENTED

Delivery is no new invention. Earlier in the days, calling the restaurant itself to order food was

common. Even today, a small proportion of food ordering is still done through phone calls and faxes.

The key change is the shift in the ordering medium from traditional phone calls to the modern Web

with the increased accessibility to go online. Food delivery started from big names such as fast food

chains, McDonald’s, KFC and pizza chains like Pizza Hut and Domino’s. In 2012, Foodpanda was

launched in Singapore and it sought out independent restaurants with either single stores or multiple

outlets. It offered these restaurants an online platform to feature their menu items and acted as a

middle man that was responsible for marketing and delivery of the food.

Page 5: Boosting your F&B business in 2016

ONLINE ORDERING IN SINGAPORE

Page 3 Boosting Your F&B Business in 2016

MORE OPTIONS TODAY

Today, there are many online marketplace solutions with the key industry player being

Foodpanda which has become a household name internationally. Additionally, another service model

has been made available with white-label solutions like Oddle and Shopify which are customizable

apps that provide each F&B with their own unique site.

CONSUMER TRENDS & KEY PROBLEMS

On the consumer end, online ordering is increasingly prevalent, especially amongst internet-

savvy adults with spending power. Office and festive events contribute a substantial proportion to

received orders.

Despite the overall positive outlook of the business, it is undeniable that the online ordering

and delivery business has its challenges.

1. High costs of delivery

2. Maintaining quality of delivered food

3. Marketing for awareness and traffic to online menu

Depending on the scale of the F&B business and the type of food sold as well as its growth

stage, a different mix of solutions might be ideal for increasing profits through a carefully-planned

online ordering business strategy.

Page 6: Boosting your F&B business in 2016

READY TO EMBARK ON ONLINE FOOD ORDERING?

Page 4 Boosting Your F&B Business in 2016

READY TO EMBARK ON ONLINE FOOD ORDERING?

QUESTIONS TO ASK ABOUT YOUR F&B BUSINESS

“22% of total delivery and takeaway orders stream in after restaurants’ operating hours.”

1. Do you often have long periods of lull hours without any dine-in customers?

2. Are there are too many kitchen staff around during the late afternoon?

3. Do you wish you had more space for the lunch crowd?

4. Do you often miss out on takeaway calls because you are busy with dine-in customers?

5. Do you think your volume of takeaway and delivery orders has reached a point where you

need to sort and analyze them?

6. Do you want to understand your customer in a more organized manner?

Page 7: Boosting your F&B business in 2016

READY TO EMBARK ON ONLINE FOOD ORDERING?

Page 5 Boosting Your F&B Business in 2016

7. Do you wish to reach out to an audience that is beyond your store’s immediate

neighborhood?

8. Have your customers asked if they could pre-order food for their events?

If you answered yes to more than 5 questions above, your F&B business is ready to embark on

online ordering. The following sections will outline the pros and cons of mandatory items to consider.

Looking for specific short term goals for your online ordering business? From our sale’ team’s

encounters with various F&B business owners, there are 4 key reasons F&B owners consider

embarking on an online ordering business.

First, they may wish to grow their F&B business without incurring extra rental costs. Second, some

smaller F&B businesses may wish to cut costs for their F&B operations. Third, some of them have

already started their online ordering business but wish to try more powerful tools to manage their

online ordering business. Last but not least, an online ordering platform has helped many with

boosting their F&B business’ sales and marketing.

Page 8: Boosting your F&B business in 2016

ONLINE ORDERING SERVICE PARTNERS

Page 6 Boosting Your F&B Business in 2016

ONLINE ORDERING SERVICE PARTNERS

WHITE-LABEL SOLUTIONS

ODDLE

A white-label online ordering management system – Oddle allows for the

individuality and autonomy of the F&B business at an annual flat rate. It serves to

simplify the tedious logistics of online ordering and optimize restaurant capacity and

productivity. Its founder’s background in F&B provides a strong awareness of actual

needs in online food ordering systems and e-commerce operations. Its marketing

arm, FeastBump, has been launched to direct corporate orders to Oddle’s existing

F&B clients, helping to establish both the offline and online presence of F&B

businesses.

SHOPIFY

Originating from Canada, Shopify is a white-label solution targeted at e-

commerce businesses in all industries. The highly customizable online store allows

for unique branding and autonomy over relationships with consumers. However, it

lacks F&B-tailored functions and thus most of its F&B clients sell F&B items with a

shelf life such as cereals and teabags.

Page 9: Boosting your F&B business in 2016

ONLINE ORDERING SERVICE PARTNERS

Page 7 Boosting Your F&B Business in 2016

MARKETPLACE PLATFORMS

FOODPANDA

As mentioned briefly above, Foodpanda is a hosting platform that features

F&B businesses that deliver. When customers visit the site, they are prompted to

enter their postal code such that F&B businesses that deliver to them are

shortlisted. They function as both a logistics and marketing tool. Your F&B

business is then charged a commission for every successful transaction. Delivery

by Foodpanda’s riders is optional.

DELIVEROO

The latest addition to the local online food ordering scene and

positioned as the online ordering marketplace for premium F&B brands,

Deliveroo places speed over variety. When customers enter their postal code,

shortlisted F&B businesses only include those that fall within a 2km radius to

ensure that food is delivered within 32 minutes. Deliveroo has taken to

aggressive marketing strategies to help their F&B clients gain market share.

Page 10: Boosting your F&B business in 2016

ONLINE ORDERING SERVICE PARTNERS

Page 8 Boosting Your F&B Business in 2016

THE BREAKDOWN

ODDLE SHOPIFY FOODPANDA DELIVEROO

DELIVERY

DELIVERY

REQUEST

Yes, flexible.

In-house/ Delivery Partner at flat rate

Yes, flexible.

Range of

shipping

providers

Yes, flexible.

In-house/ FP

rider

Yes, inflexible.

Deliveroo rider

ORDER MANAGEMENT

ADVANCED

ORDER

No time limit on pre-order. Ideal for festive promo sets and bakeries

No time limit Maximum 1 day

in advance

Maximum 1 day

in advance

COLLATION OF

ORDER ITEMS

Yes, for orders more than 1 day in advance

Yes No No

MENU

CUSTOMISATION Customizable variants and add-ons

Non-F&B-centric Customizable

variants

Customizable

variants and add-

ons

AESTHETICS Colors and images customizable

Highly Customizable with templates

Customizable

images only

Non-

customizable

COST

EVALUATION

Only annual flat rate

Monthly rate + Per transaction fee

Per transaction

commission

Per transaction

commission

Page 11: Boosting your F&B business in 2016

ONLINE ORDERING SERVICE PARTNERS

Page 9 Boosting Your F&B Business in 2016

CUSTOMER

SERVICE

Customer

Success team in

Singapore

Online self-help

Local helpline

Outsourced to

overseas call

center

Local helpline

GOING MOBILE Mobile-friendly site, one-page

Mobile-friendly templates, page-to-page

iOS, Android,

Windows App

iOS App, Mobile-

friendly site

PAYMENT

MODES

PayPal, Cash on Delivery

18 modes incl PayPal

PayPal, Credit

Cards

PayPal, Credit

Cards

KEY NOTES

The table above is based on feedback we have learnt from speaking to our F&B clients and

understanding their needs for online ordering. Every F&B business might have a different situation.

The key idea is to sift out the features that are most important to you and choose a platform or a

combination of platforms that makes the best fit. More often than not, our F&B clients are on both

marketplace platforms and white-label ones if their situation allows. It serves both their marketing

needs as well as the subsequent necessity for brand individuality and reduction of costs for repeat

customers.

Other than service providers, there is a 3rd option available – engaging a website developer

to design your online ordering menu from scratch. The greatest benefit from this is the ability to

customize every single detail on your online ordering menu. On the other hand, it would be wise to

note that the site is static and any changes to be made might mean an extra fee and a long time

period of processing. If you do sell F&B goods that have a shelf life, consider Shopify as a cheaper

option.

Page 12: Boosting your F&B business in 2016

DELIVERY PARTNERS

Page 10 Boosting Your F&B Business in 2016

DELIVERY PARTNERS

This is a possible option to consider if you wish to be flexible with your delivery options. This is

especially important if in-house deliveries during lull hours can contribute to maximizing in-house

manpower.

Marketplace options like Deliveroo and Foodpanda often make it mandatory for the F&B business to

use their riders to maintain a unified image and ensure speed of delivery. On the other end, white-

label solutions fully relinquish control to F&B business owners who can decide how each order’s

delivery be assigned and managed. Consider the following before you make your decisions:

Does your delivery partner offer complementary software/hardware tools to manage your

delivery?

Can you track and contact the rider directly without going through the delivery partner’s call

center?

Does the system allow for registration of employees so that you can assign riders to incoming

orders?

How does the rider/delivery partner return cash-on-delivery payment?

Page 13: Boosting your F&B business in 2016

HOW TO GET STARTED ON DIGITAL MARKETING

Page 11 Boosting Your F&B Business in 2016

Is there a mechanism in place for dealing with any customer complaints as a result of

negligence during delivery?

Will there be compensation for delayed deliveries?

HOW TO GET STARTED ON DIGITAL MARKETING

The online ordering business can be a form of marketing and at the same time aim to use

other marketing tools to draw traffic to the online ordering menu.

When using online marketplaces that are well-known, getting listed or even featured

increases awareness of your F&B brand for new customers.

When using white-label solutions that allow you to upload images of food items, you can aim

to capture Facebook fans and draw them to your online ordering menu. The eye-catching menu items

are another form of branding and promoting your menu items to potential customers.

To achieve this, your menu’s aesthetic appearance and every item’s description is key to

attracting actual conversion to sales. 3 key areas to work on:

1. Images. Engaging a professional food photographer is worth the investment as food images

are the first thing that catch the customer’s eye on the online ordering menu. Another option

would be to search for free-for-use food photos. However, you would have to make sure that

it matches what you offer to encourage return customers.

2. Titles & Descriptions. While the average customer may be captured simply by a picture, do

not miss out on those who prefer words or need further convincing. Whichever service

provider that you are using, this is something that you can work on. Titles can go in two

possible directions: easily understood or intriguing. The first one allows the reader to find

what they want quickly while the latter might prompt further engagement and make your

food item stand out from other similar cuisines. As for descriptions, they are there to help

with decision-making so put yourself in the shoes of the customer and think about what

would be relevant. For example, a bakery shop that focuses on providing options for

customers with allergies can include details about nuts, wheat etc. Another way to make use

of descriptions is to provide a layman’s understanding of the exotic cuisine name such that

the customer does not just avoid ordering entirely because they don’t know what has been

offered.

3. Arrangement. User experience on your online ordering menu should be consistent to

encourage successful conversion instead of just a random visit. Place top-selling items and

set meals at the top so that busy customers can make decisions in a snap. First impressions

Page 14: Boosting your F&B business in 2016

HOW TO GET STARTED ON DIGITAL MARKETING

Page 12 Boosting Your F&B Business in 2016

count and that is why most online ordering menus have pretty food images at the beginning.

However, neither should it go downhill towards the end. If possible, try to provide images for

every single food item that you have. Especially for items that are non-classic.

Simultaneously, it would be wise to make full use of a range of online marketing tools to further

boost traffic to your online ordering menu. Another 3 areas to work on:

1. Social Media. Hashmeta estimates social media penetration to be as high as 70% in Singapore,

giving reason to why so many marketers have hopped on to marketing through social media

platforms like Facebook, Instagram and Twitter. Non-paid marketing through social media is

useful for engaging existing customers and making it easy for them to share about their

favorite F&B business with their friends. Get started on Instagram with Singaporeans’ love

for food accompanied by pretty images on their accounts.

Page 15: Boosting your F&B business in 2016

HOW TO GET STARTED ON DIGITAL MARKETING

Page 13 Boosting Your F&B Business in 2016

2. SEO. Search Engine Optimization refers to taking actions to push your website to become a

natural (as in not because of paid ads) top result on Google Search as well as other search

engines. It might seem complicated to the beginner but you can get started with Search

Engine Watch’s 8 Essentials of SEO. When you start to get the hang of it, try the more

thorough Moz’s Beginners’ Guide to SEO. One last tip -- as all commercial blogs with

awesome SEO advocate: Always put readability before SEO. Keeping your consumer in mind

will put you into the good books of Google than any other dirty SEO tricks.

3. Paid advertising. Many have dubbed non-paid social media marketing a myth. We think it

should be a healthy combination of both in the F&B industry where maintaining a friendly

relationship with your customer is important for repeat purchases. At the same time, beyond

the small pool of existing customers, paid online ads are another efficient way to reach out

to a targeted pool of customers. Based on their location and the things they like, Facebook

and Google has tools to help push your ads to the relevant people. The most common model

for payment is PPC (pay per click). Most commonly used as expected are Facebook and

Google ads.

a. Facebook Ads have the potential to close in on users who have Likes and Shares on

Facebook related to your F&B theme or cuisine. Before starting, plan objectives for

your Facebook ads campaign with a reasonable budget to test waters. Decide on your

audience demographics and you are ready to start off with this simple guide to walk

you through. When you get familiar with how it works, try out the following to

improve on your Facebook ads:

5 Tips in Creating Killer Facebook Ads

Posting Creatives for Facebook Ads

Ways to Use Facebook Carousel Ads for F&B

b. Google Ads are another alternative for drawing in potential customers with over 2

billion searches a day. If your potential customers Google for something that is

related to your product, your ads can appear in addition to the natural search results

mentioned above. Setting up a Google Ad Campaign might be slightly complicated

but the effort is worth the detailed analysis it returns on how you should adjust your

campaign. When in doubt, return to Google’s very own guide on every little thing you

should know about your Google Ad Campaign.

Page 16: Boosting your F&B business in 2016

KEEP YOUR CUSTOMERS RETURNING

Page 14 Boosting Your F&B Business in 2016

KEEP YOUR CUSTOMERS RETURNING

The final stage of your purchase cycle is sustaining a great relationship with your customers, whether

they are first-time or repeat customers. While you get to see them for dine-in business, that personal

touch is much lost when they order their food online.

There are still ways to engage your customers. Here’s 3 to get you started:

1. Survey your first-time customers

While feedback from loyal customers might prove to be most useful, we shouldn’t neglect those

coming from first-time customers. Do up a simple survey. What's their first impression of the café?

Did they like the food? This will be beneficial to improving your place and bringing in new customers.

It does take extra time and effort, but try implementing it with a sleek survey from Typeform. That

first-time customer might choose to visit again because they felt you cared about their experience!

2. Respond to fans on Facebook

It always creates a good impression on customers when they see somebody real from the

company responding to any comments on social media. Social media platforms are not just for one-

way communication. It’s meant for much more personal interaction between users. So why not tap

on that and kindly respond to comments. If a regular provides a suggestion that you decide to

implement, thank him personally by tagging him in a post and invite him down to see the change for

himself. Even simpler actions such as Like-ing a comment shows that you are sincerely interested in

what your fans have to say.

3. Track your customers’ likes and dislikes

Understand their preferences. If your online ordering service partner such as Oddle has a sales

data function, check out your top-selling items and those that aren't selling as well. Go online to see

what reviews are saying about your food or send an email to customers who have ordered from you

to get feedback on how to improve. Even regulars may get tempted by that new Italian bakery around

the corner. Provide little menu surprises now and then to keep that novelty in your relationship.

Page 17: Boosting your F&B business in 2016

OTHER IMPORTANT THINGS TO NOTE

Page 15 Boosting Your F&B Business in 2016

OTHER IMPORTANT THINGS TO NOTE

This section outlines some other important features to evaluate when choosing your online

ordering service partners.

TAKEAWAY PACKAGING

With an increased interest in aesthetics and environment-friendliness, delivery packaging

becomes part of your brand image as well. It represents what your F&B business stands for. Plastic

and Styrofoam takeaway containers are often associated with “dapao-ed” food from the coffee shop.

To distinguish themselves as a more prestigious or unique brand, some F&B businesses do invest in

designing their own individualistic takeaway containers. Alternative materials are also used such as

bio-degradable plastic and corn plastic which marks the brand’s commitment to saving the

environment which might just be the plus point to gain loyal customers who care.

MENU ITEMS

Not every single item on your dine-in menu is suitable for sale on your delivery menu. Delivery

time might have an impact on the quality of your food. For example, a Japanese restaurant might

choose not to offer its ramen on its online menu as it is difficult to ensure the temperature and taste

of the noodles remain the same after delivery.

Page 18: Boosting your F&B business in 2016

TAKING THE FIRST STEP

Page 16 Boosting Your F&B Business in 2016

TAKING THE FIRST STEP

START WITH YOUR VERY OWN ONLINE ORDERING SITE!

We can’t say we’re the best but allow us to state a fact: We are created out of a true

restaurateur’s need for an online ordering management system to offer an affordable logistics and

marketing solution to restaurateurs.

Furthermore, our versatile online ordering system has helped 800 F&B brands across Asia

boost their online ordering business, including Singapore, Hong Kong, Vietnam, Taiwan and Malaysia.

If you’ve found this resource useful or wish to learn more about managing your online

ordering business with ease, write in to us at [email protected] today.

195 Pearl’s Hill Terrace #03-05 Singapore 168976

[email protected]

oddle.me