Food Delivery Services in Malaysia Essay Sample

The food delivery industry is a booming business in Malaysia. It’s not hard to see why – people are too busy nowadays to cook their meals, and they want the food delivered right to their doorstep. But what does it take for your company to be successful?

What is a food delivery service?

A food delivery service is a company that sends lunch to hungry employees, usually by running the orders through restaurants nearby.

Food delivery services are up-and-coming in the world of business. They provide an alternative to brown bag lunches or selecting unhealthy fast food nearby for meeting deadlines. It takes about 10 minutes on average from ordering online to having hot and tasty lunch delivered to your doorstep; there’s no need to spend time walking down the street searching for a momentary distraction while you’re ravenous and ready for something satisfying!

For Malaysian companies that depend heavily on people’s ingenuity and ability to work sharp despite long strenuous hours, this alternative does not only save money but also fulfils workers’ hunger during their working hours.

Importance of food delivery service in pandemic

From a Malaysian governmental standpoint, alternative food delivery services are helpful during pandemics because they can provide people with the resources needed to survive. When access to groceries is severely limited, alternative suppliers can assist by providing critical resources.

Alternative supply chains that deliver goods on-demand or on as-needed basis offer benefits for increasing public health and safety during pandemic events. These services have the potential to improve both preparedness for future events and how individuals manage through these difficult times.

##Impact of food delivery services

Online food delivery is currently booming, with its increasing adoption by restaurants and customers. According to research group IBISWorld, revenue for this Malaysian market will increase at an annualized rate of 13% between now and 2020. The potential drivers behind this growth are the convergence of technologies (e.g., car or bike-sharing services) that allow consumers to satisfy their food needs more easily; lifestyles that prioritize convenience; and significant advancements in mobile payment systems.

Since 2011, investment in online food ordering has grown exponentially globally. Analysts predict that it will continue to grow as people order regularly from home or work rather than waiting for their takeaway meal until they arrive home after a long day of work/school play.

##How does food delivery service work?

Now a business in Malaysia can offer online food ordering and delivery, managing customer orders from start to finish. A restaurant administers the menu, deals with customer orders, prints menus and other materials does marketing for the business by offering coupons via third-party search engines, and provides reports on how well he or she is doing at attracting customers all from behind a computer screen.

In addition to the time saved by the Malaysian company’s employees not having to take each order individually over the phone or in person, there are other benefits as well. The company saves money on payroll hours spent fielding phone calls and waiting on customers who walk in person – which isn’t a problem that CafeMom has right now!

##Food delivery business model

The business model of food delivery services depends on the type of food service. For over-the-counter services, different models are possible.

One example is franchising, where a franchiser sets up an individual restaurant company in all major metropolitan areas for exclusive rights to sell its franchised restaurant locations within that franchiser’s territory.

Restaurants may be either self-owned locations or franchised locations depending on the agreement with the franchiser. The majority of restaurants in western countries are franchisee operations, motivated by economic benefits offered by establishing a centralized management system that minimizes commercial risks involved in opening their restaurant location compared to starting an independent establishment).

##Demand for food delivery service

Malaysia is experiencing a huge boom in the demand for food delivery services, with one industry report projecting that 300,000 employees could be employed to meet this demand.

One reason for this surge in demand is the increase in city population due to globalization. The other reason for this trend is that Kuala Lumpur has gone through rapid modernization over the past few years, which has resulted in employment opportunities shrinking even as the cost of living grows higher and higher (for instance, it’s now possible to buy smartphones delivered directly to your home).

Food delivery services in Malaysia grew from a market size of 73.5 million in 2015 to 115 million in 2016, an increase of 41%. In 2016, catering is the most popular category, doubling its share from 8.4% to 16.9%. Spurred by the hyped-about restaurant scene in Kuala Lumpur and KL has been touted as hitting a tipping point with consumers demanding more cuisines with a range of prices and flavours at their fingertips, according to industry experts.

Among the factors driving this growth is that many people have migrated into urban centres with less space for food preparation or storage amenities available on-site including cooking equipment and refrigerators even microwaves.

##Pros and cons of food delivery service

The pros and cons of food delivery service are too many to list.

Pros:

  • Little to no prep work. All ingredients are automatically included in the package, you just have to open and eat! Some websites even offer to grab lunch for you when they deliver.
  • No need to figure out what your coworkers want.
  • Time saved: because of the convenience and simplicity of food delivery services, the frequency with which dinner is eaten outside has risen dramatically in recent years.

Cons:

  • Pricey compared to cooking at home, especially for those with less disposable income and smaller budgets. Food delivery service companies may be able to offer low prices because of their volume purchasing power but even then the price is often higher than what you would pay if you shopped around or bought in bulk from an online grocer like BigBasket.
  • Less customer control over ingredients depending on how picky your dietary requirements are could be a pro!
  • Relying on someone else’s schedule can become frustrating when it doesn’t work well with yours (especially true if it’s not pre-negotiated). This isn’t quite as much of an issue if you are ordering lunch or breakfast where typically there is less urgency about when the food needs to be delivered.
  • Food delivery services require a high level of trust on both sides for customers who have no idea how long it will take before their order arrives and whether what they receive is exactly as they ordered, and vice versa with staff at restaurants that may not know anything about them or even see the final details of their order until moments before it’s being prepared/delivered.
  • Today many busy professionals rely on food delivery services to save time and money, with the average Malaysian spending $151 per month on them.

##Food delivery industry analysis

The food delivery industry is in the growth stage. It is predicted that by 2022 it will be worth $200 billion, which is a 41% increase from 2016.

Food delivery companies, specifically startups like UberEats are taking advantage of America’s notorious work-from-home culture and getting people to order their next meal straight from their couch. Why not save money with Taco Bell or get fancy with Yelp/Eat24? You don’t have to leave the house! And you can make someone else do your grocery shopping for you which Google searches for “grocery store” corroborate Americans’ low self-care standards when buying groceries (have kids who hate vegetables?).

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