Economic news 3:08 pm 2024-02-03
Kasikorn Research Center estimates that in 2024, the value of the food delivery market will be around 86 billion baht, or a contraction of 1.0% from 2023, although the average cost of ordering food per time is likely to increase (Price per Order) Around 2.8% of the average in 2023 or with an average price of around 185 baht per order. This will mean that the number of times and the number of orders will be reduced.
In 2024, it is expected that the number of food orders through applications or Food Delivery will decrease by around 3.7% from 2023 as a result of
1. The need to order through apps is decreasing as consumers return to eating in restaurants. back living outside the home And most have returned to work usually a full week.
From the results of the survey Kasikorn Research Center found that although almost all of the sample group that used the Food Delivery service (94% of respondents) thought they still used the Food Delivery service, 48 % of the sample group thinking they would order less food. This is an increase from the survey results in June. 66 At the same time, new customer applications slowed. This is reflected in the LINE MAN subscription index which decreased because most users already have sufficient access to this Food Delivery service. Platform service provider Therefore, it uses a strategy to expand its customer base by adding service areas in other states such as in secondary tourism cities. Add new services and expand new sources of revenue, such as increasing discounts on car reservation services. Discount on dining in partner restaurants Create cross-business alliances
2. Average food prices in the app rising Affects order size which is a result
2.1 High accrued costs cause restaurants to raise prices in-store and in-app In the past, restaurant businesses have faced rising business costs, such as utility costs, labor costs, raw material costs, and highly adjustable financial costs. cause entrepreneurs to need to increase food prices
In 2024, it is expected that the average food price will increase by around 2.2%, continuing from the average price increase of around 5.7% in 2023, which is in line with the results of the survey. Kasikorn Research Center Some people think that ordering food from an app is more expensive, however, one of the options to deal with the problem of rising food raw material costs. is the use of efficient stock management technology This allows restaurants to better plan ordering methods and stock management using real time data.
2.2 Competitive promotions have previously been reduced. As the platform turns to focus on profit generation After most of them recorded accumulated losses, currently the cost of doing business for Food Delivery application providers has increased, giving them flexibility to market by reducing fees GPs (the average collection from GPs is around 30%) and includes discounts on transport costs. restrictions.
However, it is also seen that Food Delivery application providers are adapting their marketing strategies to be more specific (Selective Marketing) rather than broad marketing (Mass Marketing) as in the past. Through joint marketing with restaurants that are popular or have high orders, such as organizing a campaign to reduce food costs when buying a certain amount. Including the use of the Subscription Model, which helps the orderer to save on shipping costs. Including discounts or no costs for using other services in the application such as Ride Hailing and package delivery. in order to reach the target customer group
Although the trend of ordering food supplies is slowing down, however, this channel is still important. Because many users still use the service. Especially at times of necessity such as peak hours or Work From Home, etc. In addition, this channel is important for restaurant businesses that have a higher proportion of income from food delivery than from front-of-shop services such as roadside restaurants. and restaurants in the Fast Food group
By InfoQuest News Agency (03 February 2024)
Tags: Food Distribution , Food Delivery , Kasikorn Research Center
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