Web and Mobile Based Deliveries Rise for F&B Industry

Social media communication, web based and mobile based delivery are fast growing in the Indian F&B space, says retail consulting firm Technopak.

Social media communication, web based and mobile based delivery are fast growing in the Indian F&B space, says a new report by retail consulting firm Technopak.

With delivery services increasing in demand, online and mobile based delivery seem to be preferred options by restaurant chains. 50% of Dominos’ revenues came from the delivery business, of which 14% were made from its mobile aAnd web platforms. The company also claims that about a million downloads have been achieved for its app. In the third quarter of 2013, the pizza chain reported more orders going online than offline.

Others have teamed up with delivery portals like FoodPanda, TastyKhana and JustEat, working on a commission based model.

Zomato too has taken a step in aiding with third party administration of delivery and dine in. Zomato provides an exclusive phone number and an advertisement banner to restaurants for a fixed monthly charge. Zomato also provides the restaurants with call records.

F&B Turns To Social for Mileage

Social media has also emerged as the preferred form of engagement with F&B brands thanks to the real-time communication that it allows. Restaurants are promoting brands through offers and incentives using social media platforms for the same reason. Another reason why brands are relying on social are for its reach in Tier II and Tier III cities which are key areas of expansion for restaurants.

Facebook was the social media channel of choice in India, followed by Twitter and Foursquare.

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Overall, the study has found a degrowth in the F&B industry over the past year thanks to the high inflation seen in 2013. Food inflation stood at 19.93% in November 2013.

The Year Ahead

2014 is forecast to see operators trying to balance high input costs, additional revenue generation in a low-growth economy. F&B companies can be seen improvising on sales and marketing strategies to attract customers, smart menu engineering, smart hiring and strict F&B controls.

Full report here.

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