Page 27 - FoodFocusThailand No.174 September 2020

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existing restaurant users. Yet, the variety the numbers during COVID-19 pandemic. The figure of this year notwithstanding shall be
of platforms will create a tough time to larger than that of the previous year because the customer’s behavior has changed during
restaurant business as well. the pandemic. However, the fear of 2 wave of outbreak may retain some customers to
nd
The new entry of platform providers may continue food delivery services from online platform.
be beneficial for the restaurant business in The trend of restaurant operation especially from large companies have changed their
terms of sales channel expansion. The business strategies and investments. The site expansion for full-service restaurants will be
restaurants have more choices to select any slow down. Instead, there will be more small shops or kiosks rising up. The restaurant
platform providers whose cost will fit them. formats and procedures will be entirely modified to accommodate a food delivery model.
In contrary, the variety of platform will force Moreover, the new entry of platform providers will bring a competition to the market. On the
a competition among restaurant operators. projection in 2 half of 2020, the number of food delivery is expected to grow by 17 percent
nd
For instance, the price adjustment will not compared to that of previous year. (If COVID-19 spread in the country returns, the transaction
be easy since customers freely compare may grow upwardly faster) For the entire year 2020, KResearch predicts that the number
prices between the applications. of food delivery shall grow up around 78.0-84.0 percent compared to the previous year.
Furthermore, restaurants must pay close This is an exponential growth arisen by the amazing outcome.
attention to their quality of products and
services, as the platforms offer a consumer
commentary section for scoring.
• Driving the existing business to
adjust their models to cultivate a mutual
benefit throughout an entire food delivery
chain
When a new platform provider enters to
the market with gap solutions to close
current problems, the existing providers is
also pressed to change their business
strategies too. To survive the competition,
the current platform providers may adjust
the following conditions. The first is to adjust
the cost conditions to all aspect partners, for
example, the GP charge to restaurants and
delivery riders. Next, they must improve the
utilization of food delivery to allocate the
under-performed resources reassigning to
heavy usage districts. Or, the rider’s benefits
could be adjusted to keep rider partners on
their sides. Correspondingly, the restaurants
may establish their Cloud Kitchen as the
extra support in remote areas to fulfill the
geographical coverage.
• Enhancing the platform application
to a Super Application to cover other
customer services in order to securing
a long-term income.
It is anticipated that the existing platform
providers will develop their applications to
integrate customer’s activities as One-stop
application to enhance their overall sales.
Since the food delivery requires a huge
budget on marketing to influence customers
on their pricing promotion, the frequent high
cost often turns the bottom line to negative.
It would be very challenging to find an extra
funding when the world economy is very
fragile.
For all year projection of 2020, the
number of food delivery may grow 78.0-84.0
percent, while this accelerating growth from
the previous year may quickly exhaust the
market.
As for the rest of the year 2020,
COVID-19 outbreak has resolved, and the
restaurant business have resumed full
operations. Therefore, the overall demands
of food delivery are not able to compare to

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