Deliveroo today announces the launch of its first Restaurant Satisfaction Index; finding that restaurants in Hong Kong are facing a challenging business environment but see delivery as an increasingly important part of their business. On average, restaurants rank their satisfaction in overall business performance at 5.6 out of 10 for the last quarter.
The Restaurant Satisfaction Index is a first-of-its-kind quarterly survey of restaurant partners that will uncover F&B trends in Hong Kong, revealing the challenges faced by operators. The aim of the Index is to enable Deliveroo to help restaurants respond fast through innovative business solutions.
Over 70% of restaurants surveyed believe that delivery is “very important” to their business. Changing customer demands are the major force behind this, as today’s on-demand digital landscape means that more and more people now expect personalized, convenient, immediate experiences in shopping, entertainment and dining. This also reflects the trend that a positive delivery experience will drive consumers to dine in at a restaurant.
Deliveroo’s Restaurant Satisfaction Index also found that delivery revenue is increasing faster than dine-in revenue. In the last quarter, 32% of Hong Kong restaurants saw an increase in order-out revenue, as opposed to 18% that saw an increase from dine-in revenue – indicating that delivery is now a vital opportunity for restaurants to boost revenue and reach new customers.
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Brian Lo, General Manager, Deliveroo Hong Kong, said, “With Hong Kong’s food delivery segment growing rapidly and estimated to generate US$615 million in revenue 2019, it’s no surprise that nearly three in four restaurants surveyed see delivery as a significant factor to their growth and success. We expect that delivery will continue to be a strong driver for F&B business in Hong Kong and we look forward to helping restaurants find new and innovative ways capitalize on consumers’ rising preference for online delivery platforms.”
New revenue streams such as online delivery are increasingly important, as restaurants in Hong Kong are now facing up to a variety of headwinds; including decreasing turnover and rising costs. Deliveroo’s Restaurant Satisfaction Index found that in the past quarter, 55% of restaurants surveyed saw a turnover decrease, 44% experienced increasing labor costs and another 57% saw operational costs go up.
Brian added, “Deliveroo is confident in the Hong Kong market and dedicated to supporting restaurants to overcome the challenges through information and innovation. We help restaurants to create virtual brands and together with our Editions kitchens, we help restaurant partners test new concepts and address market gaps, without the up-front investment and costs. Our data-driven tools like Marketer, which recently became a 24/7 always-on initiative, help restaurants leverage data and insights to target new and repeat customers with relevant promotions. With these and other innovative offerings, Deliveroo is supporting our partner restaurants to more fully capitalize on the delivery opportunity.”
Despite the challenges, half of the restaurants surveyed (50%) said that they are confident in Hong Kong’s F&B industry for the fourth quarter.