Will food delivery takeout become the dining scene in HK?

Food Delivery Takeaway become a dining scene in Pandemic?

Posted in Blog, F&B News Hong Kong on July 28, 2020 by Lilian Leave a Comment

Will Food delivery takeout become a new dining scene in Coronavirus spike? See how FB operators can survive under no dining inside restaurants?

Food delivery takeout has constituted higher portion of restaurant revenue since Pandemic outbreak.

In light of escalating Coronavirus, Hong Kong is subject to restriction of no dining inside restaurants. Can food delivery and takeout help to sustain restaurant business?

The Pandemic has a profound impact on the dining sector. It has not only affected the operation mode of restaurants in Hong Kong, but also the dining habits around the world.

No dining inside restaurants first in Hong Kong amid Coronavirus spike

Food Delivery Takeout only. No Dining in

Up to date, there are around 16,000 licenced General Restaurants and Light Refreshment Restaurants in Hong Kong. In other words, no dining in restriction covers all restaurants, bars, cafes and coffee shops which provide seat covers.

As a result, no dining in restriction has an adverse impact on FB industry. In order to keep afloat of restaurant business, restaurants are trying different means to survive. But how?

Growing demand of food delivery service since Coronavirus outbreak

Ways for Restaurants to survive in Pandemic:

(1) Food Delivery Companies:

Apparently, demand for food delivery services has soared since Pandemic outbreak.

On the other hand, customers are now more ready to order food to go. As some people are working from home, order food delivery has become their daily routine.

Under no dining in restriction, more restaurants will work with food delivery companies to compensate partial income loss.

Restaurants work with food delivery companies in Pandemic

(2) Food Delivery Takeout Apps:

Recently, some restaurant groups have built own food delivery apps instead. Actually, it’s nothing new for FB sector.

Back in 1994, Pizza Hut launched the first-ever pizza online order. Nowadays, building e-commerce tools online are easy and fast.

Apparently, more restaurants have started own food delivery takeout apps since Pandemic. It could be a way to save the fee to food delivery companies. Also, it can help to maintain relationship direct with customers, even when there is no dining in service.

Restaurants go for own food delivery takeaway apps

Among all, Black Sheep Restaurants Group has started own food delivery channel called “GO”. They have created an app for delivery instead of working with food delivery companies.

JIA is another restaurant group who has recently developed own platform for food catering called “JIA Everywhere”.

In the long run, restaurants could build up CMS through their food delivery platforms. It is not only a valuable asset to engage with customers, but also provides useful data to identify future plan.

(3) Food Takeaway Shops

Since the Pandemic outbreak, dining sector has been hardly hit. The bigger the restaurants are, the harder impact they can feel.

In view of current market, some FB operators are shifting the business model to food takeaway shops. Apparently, operating a food factory or takeaway shop is in lower costs and risk, as compared with a restaurant.

As witnessed by Lacrucci, we have got more enquiries on food takeaway shops since Pandemic outbreak. Also, there is an up trend for number of licenced food factories in Hong Kong.