According to statista.com, the UK fast food market was worth almost 15 billion British pounds in 2018. It competed with pubs and bars, which are now the most popular dining out options for Brits, more so than traditional service-led restaurants.
Data from CGA peach suggests that there are well over 4,000 Chinese, Thai and Japanese restaurants in the UK, around 16% of all the country’s restaurants, and they are growing in number. A recent study by YOU Magazine reveals that Chinese is the most popular takeaway in the UK followed by Indian and then pizza. These stats further validate how quickly Peng would scale through digitization of the traditional business processes that has slowed growth as the demand for Chinese Takeaways in the UK is massive and in need of digital innovation to blitz scale.
As cited from Blog 3, a more effective digitization strategy would be a hybrid of all three strategies and not necessarily one of the three strategies to meet the digital transformation goals. A hybrid of all three strategies would be utilized to satisfy customer needs that might not be met by just a single digital strategy with the goal of enhancing efficiency in meeting customers’ needs and enhancing customer experiences in food delivery.
On completion of the business transformation, Peng saves costs through less overhead expenses and would not need to build more physical food outlets since the business can now reach millions of customers across the UK through the use of food delivery applications like Just Eats. The exposure to new customers beyond its 7 takeaways in important locations also doubles as marketing platforms for new service offerings thus breaking the 2 mile delivery barrier and for foods less than 12 pounds. Peng serves as a digitized business moving fast in the Chinese takeaway market in the UK meeting demands of existing and potential customers.
More so, some customers prefer ordering foods from the company website or mobile app as a result of trust issues in payment. This is where the hybrid strategy of keeping open the channels of food delivery services and the company mobile app to satisfy customers with trust issues and win their loyalty for repeat sales. The beauty of this strategy also enables Peng to collate data as real-time as possible to analyze facts, trends, demography, location, customer sentiments, traffic, sales and order volumes in order to estimate operational efficiency (or lack thereof) of the business as to gather insights. Data gathered, could be used for segmented promotions and marketing to reach out to specific customers with new service product offerings.
Additionally, the use of in-house mobile apps would enable Peng to pay zero pounds in commission fees and save more money as against completely relying on food delivery services which charge as much as 600 pounds for an enlistment fee, 10% on commissions and other split costs during payments transactions from the customer. According to a report by Preorder- A London-based provider of digital ordering technology, 70% of consumers prefer to order directly from a restaurant than through a third party-apps. This shows that a large customer base of Peng would prefer ordering Chinese takeaways through Peng’s website or mobile app rather than using third party food delivery services.
Finally, the use of a virtual counter system also serves as a fun way of ordering for foods and appeals mostly to the generation z and tech millennial comprising a youthful populace. It makes food ordering exciting, fun and engaging. Peng also uses the automated process to study customer data and gain insightful activities on customers for enhanced sales.
REFERENCES
Katiee McCann, ’Pros and Cons of Offering Food delivery Services”, Touchbistro, 2020, https://www.touchbistro.com/blog/pros-and-cons-of-offering-food-delivery-service/
Lock S, ‘’Fast food Market value in the United Kingdom (UK) 2018, by type’’, Statista, Nov 5, 2021. https://www.statista.com/statistics/711976/fast-food-market-value-united-kingdom-uk-by-type/
‘’How Food delivery app can help grow your restaurant business’’, Food day, May 30, 2020. https://foodday.co/food-delivery-app-restaurant-business/
‘’70% of Consumer prefer to order Direct from Restaurants, Not Third Party-Services’’, Hospitality tech, May 24, 2018. https://hospitalitytech.com/70-consumers-prefer-order-direct-restaurants-not-third-party-services
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