Thriving Forward: Embracing The Digital Lifeline of Restaurants for Continued Business Resilience And Growth

By Jay Ar Juan, Senior Commercial Director, foodpanda Malaysia

In the rapidly evolving food industry landscape, digitalisation has become more than just a trend – it is now a necessity for survival and growth. The surge in technological advancements has propelled restaurants into a new era, reshaping the way they operate and connect with customers. Embarking on a journey through the impact of digitalisation on the food industry, we’ll explore recent changes and how food delivery platforms navigate this transformative landscape, with a specific focus on its implications for local vendors in Malaysia.

From a restaurant’s perspective, digitalisation is about leveraging technology to enhance customer experience, streamline operations, and drive business growth. This is a crucial aspect of driving the business as a whole. The benefits of it are extensive, ranging from increased efficiency to data-driven insights that enable personalised customer interactions. Particularly in the last few years, we’ve witnessed a profound impact on communities as restaurants adapt to these changes. The food industry is inherently competitive, and the digital shift provides a competitive edge.

The evolution of the food industry has resulted in several fundamental changes. One prominent shift is the rise of delivery services, enabling restaurants to expand their reach and increase revenue. Additionally, data-driven insights have become invaluable, allowing businesses to tailor their offerings to suit customer preferences. These components will put small business owners on a level playing field with mammoth chains. The community impact is substantial, with local businesses gaining visibility beyond physical constraints. Even small roadside vendors can now showcase their offerings to a vast audience using platforms like foodpanda.

Digitalisation upscales businesses, including food

Embracing delivery services has not only expanded revenue streams, but has also eliminated geographical barriers, allowing restaurants of all sizes to compete on a level playing field. The convenience of ordering from anywhere has become a customer expectation, providing businesses with a broader reach.

Being part of a marketplace like foodpanda democratises visibility, giving even the smallest establishments a chance to showcase their offerings. A roadside stall will have the same opportunity for eyeballs via the app as a massive restaurant chain at the most valuable rental space in a busy shopping district. With just a few taps, customers will be able to discover even the most obscure vendors within seconds.

Additionally, the integration of technology has brought about data-driven insights, enabling personalized experiences by analysing customer preferences. This not only tailors menus and marketing strategies, but also enhances customers’ overall satisfaction. The rise of contactless dining, payments, and reservations, coupled with the use of platforms for marketing, has further enhanced convenience and customer engagement, fostering loyalty and attracting new patrons. Digitalisation is not merely about efficiency, it’s a holistic approach aimed at creating memorable customer experiences and ensuring the sustained relevance of restaurants in an evolving landscape.

Supporting the restaurants in their digital transformation is foodpanda with tools at their disposal. The Panda Partner app is available on both Google Play and Apple App Store, providing vendors with insights into sales, operations, and marketing, all from the convenience of their phones. Traditional advertising methods are being replaced by digital marketing through the Panda Partner app, making it easy for restaurant operators to market themselves through several simple clicks, even for those without prior digital marketing knowledge. The transparency in tracking results enables vendors to be more strategic in their marketing efforts, contributing to their growth as entrepreneurs.

In the past, data and results simply weren’t trackable, such as knowing how many customers visited their stores and placed an order from thereon. Restaurants and even large chains normally have had to spend big money to analyse these data for them. But with foodpanda’s digital marketing support, they would know how much they have spent and how much sales they generated from these marketing activities, fundamentally allowing them to be better entrepreneurs.

Going beyond the pandemic lifeline

Amid the challenges posed by the pandemic, there are restaurants that have adapted to digitalisation and have experienced significant differences in their business.  For instance, one of our restaurant partners in Penang, Uncle Lan’z, has strategically leveraged digitalisation to reach customers beyond the usual coverage area and saw a significant surge in sales and heightened brand recognition. Digitalisation became the backbone of Uncle Lan’z’s business, with delivery alone accounting for 70% of total sales during this challenging lockdown period. A partnership lasting over four years has positioned Uncle Lan’z as one of the highest-grossing vendors in the northern region, underscoring the transformative impact of embracing digital platforms.

Similarly, Gerai Ulique Corner faced adversity during the lockdown, leading to a temporary closure of the outlet. With digital platforms providing support, restaurant owner Cik Norlia started selling her fare from home, ensuring business continuity and fostering loyalty. The adaptability facilitated by digital platforms allowed Gerai Ulique Corner to resume business fully as the economy recovered, showcasing resilience in the face of challenges.

On the other hand, the advent of food delivery platforms has contributed to the rise of F&B operators that exist purely for the food delivery market. For cloud kitchen operator Foodle, the partnership with foodpanda since Q3 2022 has brought substantial growth through exclusive collaborations and benefits. Enjoying priority placement on platforms, dedicated marketing support, and access to specialized promotional opportunities, Foodle thrived as a dynamic and diverse cloud kitchen business. By leveraging digital tools to assess physical store potential, facilitate collaborations, and focus on top-performing items, Foodle’s success story exemplifies the symbiotic relationship between cloud kitchens and digital platforms in the evolving landscape of the food industry.

The digital transformation facilitated by platforms like foodpanda is reshaping the restaurant landscape. The benefits of going digital are evident, from increased reach to data-driven insights and enhanced customer experiences. As we navigate the ever-evolving food industry, embracing digitalisation is not just a choice but a strategic imperative for sustained growth and resilience. foodpanda remains a key partner in this transformative journey, empowering restaurants to thrive in the digital era.