Food delivery applications are an example of ‘digital disruption’, in which digital technology transforms not only consumer behavior but also restaurants’ food supply chains.
KResearch estimates that the food delivery business in 2019 will amount to THB33-35 billion, up 14 percent from the previous year, and account for 8 percent of Thailand’s total restaurant business value in 2019.
Additionally, food ordering apps have propelled the food delivery business to enjoy an annual growth rate of over 10 percent from 2014-2018, higher than the expansion rate of the restaurant business in the same time, at only 3-4 percent per year.
The popularity of the food delivery business is reflected in the results of a survey conducted by KResearch.
The findings show that 63 percent of the respondents think that the advent of food ordering apps has changed consumer behavior. Diners increasingly order food via online platforms, and decreasingly dine out at restaurants.
The burgeoning food delivery and related application business has increased opportunities for players in restaurant supply chains, including small and big restaurants, to generate more income as they can reach out to new groups of customers.
In fact, the market share of restaurant revenue in the online food delivery market is estimated to reach around THB26 billion. Delivery motorbike riders can also earn extra income by receiving business from online food delivery platforms; the market share of the delivery motorcycle service is estimated at THB3.9 billion.
At the same time, the vigorous battle of food apps has prompted restaurant chain operators to adjust their business models in order to maintain their competitive edge and market share. Restaurant chains may have to add channels for receiving food orders from customers and offer a wider variety of menu options.
They may also have to choose environmentally-friendly packaging to make their products more appealing to ‘green’ customers.
Ministry of Commerce pushes for exports to offset trade war aftermath
The Board of Trade of Thailand’s Chairman has proposed temporary border trading points be upgraded to permanent ones and more centers for the distribution of SME goods be opened
Fruit farmers coping with oversupply and price slumps
Thai Government vows to help fruit farmers, following the problem of product oversupply and price slumps, the Ministry of Commerce said.
BANGKOK, August 2019 (NNT) – To help fruit farmers, following the problem of product oversupply and price slumps, the Ministry of Commerce has recently used Section 44, of the interim constitution, to engage government and private agencies in assisting them in terms of marketing to help sell the produce, including mangosteens, Lansium demesticum, rambutans, longans and other seasonal fruit.(more…)
Thailand’s Drought disaster estimated 10bn baht ($326M)
The overall damage is expected to escalate to 37 billion baht should the drought extends to September, as the wet season rice cultivation cycle would be affected; that would lower expected Thai economic growth to 2.9 percent from 3 percent.
BANGKOK, 3rd August 2019 (NNT) – The latest estimate from the University of Thai Chambers of Commerce (UTCC) shows the drought disaster this year has affected some 1,330 square kilometers of farmland, most of which is rice farms, with initial damage estimated at about 10 billion baht.(more…)
Thailand Ecommerce Market: Shooting For Success
At present, the Thai ecommerce market is valued at USD 3.5 billion. According to a Google Temasek study, Thailand’s e-commerce...
Aspire Set to Become First SME Neobank in Southeast Asia with US$32.5 Million Raise
The recent financing has been led by Mass-Mutual Ventures Southeast Asia with participation from Silicon Valley’s Arc Labs and existing...
How is Thailand Bringing Technology to the Table?
In Asia, a country like Thailand has taken the initiative to implement agricultural biotechnology in its industry. The country has...