Thread by @entreprenenture

Let's have our weekly #GlobalEChats and discuss the topic of #foodtech #delivery.

As #food is a necessity, it is natural that #entrepreneurs are lured into venturing in the F&B business. What more with #IR40, we often think of taking business one step ahead: by involving tech!

https://twitter.com/entreprenenture/status/1060125072340377600

Now let's break this down into two types of niche within #fooddelivery and #fnb industry.

1. You own the restaurant and you are providing an additional delivery #service.

2. You don't own any restaurant and you are merely the delivery service.

The two are very different!

To help put points into perspective:

#1 is a classic example of pizza stores such as @DominosMY. Any #eatery can set up its own delivery system.

#2 is a rather new invention. Such examples would be @foodpanda_my and @GrabMY's GrabFood service!

Today, for #1 with #tech you can set up an online ordering system with only a #Facebook page! Of course, you can also utilise existing platforms such as #2. In 2018, we are for integration and good disruptions! 😊

Yes, it is that simple! Technology, amirite?

But here are some complications that will inevitably come along your way:

1. Food or Tech? Both?
It's hard enough to venture into *one* #business but with a food delivery, you have to also manage the tech part of the delivery!

Which is more important? 🤔

2. #Retention or #Expansion?
Once you hit the ground running with this, do you focus on retention of customers or expansion of customer base? What if you keep expanding but lack retention? But retention alone isn't enough for long-run #biz #sustainability?

3. Food Ordering Platforms #FOP
What are those? Well, they're actually the #2 type of #foodtech we mentioned earlier. Foodpanda and the likes! If you depend on them, how do you ensure long-run profits with their high commission rate? Do you increase your prices?

So how can you turn the tables (ahem, pun intended!) on these challenges?

Let's look into it!
1. Ensure that your food quality is good. The tech part is secondary, the focal point must always be on your core business. You're not selling a delivery service, you are selling FOOD!

2. Focus on retention of customers! Loyal customers will bring more customers along and you also spend less money on expansion marketing.

Plus, if you expand too big too fast, you have to remember that food production capacity is time-sensitive and hard to expedite!

3. Working with the best FOP or #tech #partner.
Whether you are setting up your own app or utilising FOPs, you need to ensure the numbers tally up to a healthy profit margin. FOPs can take too big of the pie while setting up your own app is very costly to maintain!

So at the end of the day, many #fooddelivery and #foodtech companies close shop because of their inability to remember these three main challenges and the basics of the business.

Want to find out more?
Read here: goteso.com/blog/7-common-…

You can also find out more here:

I Failed In A Food-Tech Startup – Here Are My Five Key Learnings inc42.com/resources/i-fa… via @inc42

Learn from mistakes of others! That's true #entrepreneurship.

Of course, you can also tune in to our online radio to learn more.

Tomorrow at 7.30AM (GMT+8), we are discussing this with a local #Malaysian #entrepreneur LIVE. Tune in here:

efm.live/live-stream/

@threadreaderapp unroll please!