Delivery ‘very important’ finds Deliveroo Restaurant Satisfaction Index

Deliveroo has launched a Restaurant Satisfaction Index, finding that restaurants in Hong Kong are facing a challenging business environment but see delivery as an increasingly important part of their business.

The index is a quarterly survey of restaurant partners that will uncover F&B trends in Hong Kong, revealing the challenges faced by operators.

On average, restaurants rank their satisfaction in overall business performance at 5.6 out of 10 for the last quarter.

More than 70 per cent of restaurants surveyed believe that delivery is “very important” to their business. Changing customer demands were revealed to be the major force behind this trend, with today’s on-demand digital landscape indicating more and more people now expect personalised, convenient, immediate experiences in shopping, entertainment and dining.

Deliveroo’s index also found that delivery revenue is increasing faster than dine-in revenue. In the last quarter, 32 per cent of Hong Kong restaurants saw an increase in order-out revenue, as opposed to 18 per cent that saw an increase from dine-in revenue – indicating that delivery is now a strong opportunity for restaurants to boost revenue and reach new customers.

“With Hong Kong’s food delivery segment growing rapidly and estimated to generate US$615 million in revenue 2019, it’s no surprise that nearly three in four restaurants surveyed see delivery as a significant factor to their growth and success,” said Deliveroo Hong Kong GM Brian Lo. “We expect that delivery will continue to be a strong driver for F&B business in Hong Kong.”

New revenue streams such as online delivery are increasingly important as restaurants in Hong Kong are now facing up to a variety of headwinds, including decreasing turnover and rising costs. The index found that during the last quarter, 55 per cent of surveyed restaurants saw a turnover decrease; 44 per cent experienced increasing labour costs and another 57 per cent saw operational costs go up.

Despite the challenges, half of restaurants surveyed (50 per cent) said that they are confident in Hong Kong’s F&B industry for the fourth quarter.

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    Karma Police posted on November 2, 2019

    There’s a reason they only mention “revenue”: it’s because Deliveroo charges 30-35% commission on all orders, which effectively wipes out any profit for the operator. Or worse, a net loss. What is the point of increasing delivery revenue if you lose money for every delivery dollar? That’s the real dis-Satisfaction. reply

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