Shining on the “Food Supply” business reaches saturation point, “Rider” notes shrinking income – unemployment after world situation changes
On April 2, a report from the Kasikorn Research Center noted, when economic activities returned to normal. And most people return to everyday life outside the home more often. As a result, online transactions that were encouraged to accelerate by leaps and bounds during the COVID outbreak 2-3 years ago tend to slow down or shrink. which is a food delivery channel to the accommodation (Food delivery) has an address like that. Reflected through the food to accommodation delivery business indicators in the first quarter of 2023, based on data from LINE MAN Wongnai, including:
1. Index of food orders to contracted accommodation by around 8.3% compared to the same period last year 2. Index of new registered users Or applicants for food delivery applications have decreased by 50% 3. Index of the number of restaurants that have request to use food to accommodation delivery platforms. Also increased by about 2.8% 4. Rider volume index on the platform contracted by about 31%
The research center said that the number of food to accommodation orders in the second quarter of 2023 (Food delivery) should shrink slightly from the first quarter. compared to the same period last year Although the market is supported by many long holidays. semester break In addition, some organizations still use a working style that allows employees to work in the office (Hybrid Working).
As a result, in the first half of the year it is expected that internal food orders will continue to shrink by 8.0% compared to the same period last year. Having made a leap forward in the last 2-3 years, so far it can be said that it should be close to a certain level of saturation.
However, the contraction compared to the same period last year is mainly a balance adjustment according to the context and changing consumer behaviour. Restaurant operators with brick and mortar stores are likely to see a recovery in sales following the return of consumers to eating out and the recovery of the tourism sector.
In addition, data from LINE MAN Wongnai also found that the number of users who use the app to search for restaurants and read reviews before going to the restaurant is increasing. The overall value of the restaurant business is expected to continue to grow in 2023.
However, with the competition in the market from the number of operators who are numerous and diverse In addition, the cost of business is still at a high level or has increased, such as raw materials, labor, rent, etc.
This makes revenue from the food distribution channel still important and something restaurant operators still need to maintain a balance in managing sales channels. In order to increase the opportunity to generate income and diversify risks, while some restaurant operators have a much higher share of income in the food distribution channel compared to before COVID.
It was also noticed that the number of riders or riders who deliver food is decreasing at a rate that is higher than the number of food orders. Some would return to work in other occupations following a general recovery in the labor market. in which direction then It would be good for the rest of the cyclists in the system. Because it reduces the pressure to compete when taking orders. This gives one rider the opportunity to receive a higher number of orders on average.
However, for operators of food delivery platforms Should have been aware and prepared to deal with the direction of the market adjustment for a long time. The food distribution channel will continue to be important to restaurants and consumers. But keeping food orders Maintaining a quality of service that reflects merit and aiming to increase profitability It will still be a challenging problem in the midst of fierce competition. so it is important
