opens first brick and mortar restaurant
Hong Kong’s largest food delivery platform Deliveroo launched its first Deliveroo Food Market – a 1,500 square-foot kitchen space where customers can walk in off the high street and order their food for takeaway.
(Author : Retail in Asia)
The site will also prepare food orders for delivery via the Deliveroo platform, bringing more choice to the area. Deliveroo has invested over HK$7.5 million in this high street site, which is located in Sai Ying Pun. This represents Deliveroo’s continued commitment and confidence in the food delivery market in Hong Kong and its robust future growth potential.
Deliveroo’s Food Market is the first site of its kind and will enable five restaurants to reach new customers with new menus, with a total of 15 dining concepts on offer to hungry Hong Kongers. Food Market represents a new spin on Deliveroo’s first ‘Editions’ site in Wan Chai – a delivery-only kitchen space which opened its doors 12 months ago. Kitchen spaces such as this are a fast-growing part of Deliveroo’s business model and this latest opening underlines the company’s growth across Hong Kong.
Brian Lo, General Manager of Deliveroo Hong Kong, said, “Bringing Deliveroo’s Food Market to Sai Ying Pun underpins our commitment to continued heavy investments in Hong Kong’s F&B industry despite market uncertainties. From using proprietary big data to always provide the best selection to customers, to shouldering capital and operational risks so our partner restaurants can expand, Deliveroo’s Food Market concept has the potential to change how restaurants reach consumers and create a more vibrant food industry for everyone in Hong Kong. This is a continuation of our dual online-to-offline strategy as we look forward to future expansion in 2019.”
New Food Concepts
The Food Market will be home to new virtual brands run by Deliveroo’s restaurant partners, which are exclusively available on the platform. At the new Food Market, for example, Crystal Jade, a Chinese restaurant from Singapore and a culinary brand with MICHELIN one star, is launching Lao Er and Brother Kwok, two delivery-only virtual brands that will tap into the eating desires of the younger generation by offering a modern twist on traditional noodle and fried rice dishes. This is the first time an Asian brand with a long history such as Crystal Jade has collaborated with a tech-led delivery business like Deliveroo to design new menus and develop new dishes. Other popular restaurant brands in Hong Kong are likewise taking advantage of Deliveroo’s newest space to put a twist on their brands’ established offerings.
The Pasta Project has been launched by Pizza Express; Pololi Group will offer Shaka with American-style sushi rolls and Killer Golden Bird with fried chicken; and Beef & Liberty is debuting the vegetarian and vegan Leaves & Liberty concept, utilising Impossible Meat for healthier dishes.
Liam Collette, Managing Director of International at Pizza Express, said, “Deliveroo’s Food Market is a first-of-its-kind opportunity in Hong Kong. It allows customer facing trials of new concepts to launch in market much faster, just as we have done with The Pasta Project. We are confident that this is the start and there is plenty more to come in the near future. As a restaurant partner to Deliveroo for over two years in Hong Kong but also in a number of other markets, we’re excited to continue our mutually beneficial relationship. Together we give consumers more options to indulge in our fresh ingredients and inspiring recipes.”
Virtual restaurant brands are already supporting the business of Deliveroo’s partner restaurants.
KAI, which serves up customised poké bowls, and Blazed offering Hawaiian BBQ platters — both virtual brands launched by Pololi Limited at the first Deliveroo Editions site in Wan Chai — have seen success and taken the concepts into a brick-and-mortar store in the heart of Fashion Walk in Causeway Bay. JIA Group has doubled their revenue through virtual brands since launching with the first Deliveroo Editions site last year.
Steph Kudus, founder of Pololi Limited said, “As a small business looking to make a big splash in Hong Kong’s competitive F&B industry, Deliveroo has given us increased reach to more customers who might not have the opportunity to try our food in our stores. Working in partnership with Deliveroo and hopefully with the new Food Market, we can continue to build more successful virtual brands that will bring more ono-licious high protein food to our customers across Hong Kong Island.
Driven by Technology
Deliveroo’s Food Markets are powered by a number of digital innovations. The Wan Chai and Sai Ying Pun sites both offer KDS – a Kitchen Display System – through which Deliveroo tracks every element of the food ordering and preparation process thus providing restaurant brands with granular data on how quickly they produce their food, increasing prep times which will mean quicker food for consumers. Always keeping the customer at the centre, Deliveroo’s technology offerings include new innovative payment options. The Sai Ying Pun Food Market accepts major credit cards, Octopus, WeChat Pay, Alipay and Apple Pay. In addition, it has a new VR offering so that customers can take a virtual tour of the kitchens they are ordering from.
A Fast-Growing Food District
Deliveroo elected to establish its first Food Market in Sai Ying Pun due to the neighbourhood’s fast-expanding food, drink and café scene, attracting local and expat foodies alike. Deliveroo is also working with partner restaurants to create new corporate-specific offerings for the growing number of businesses now moving into SYP and surrounding districts such as Kennedy Town and Sheung Wan.
Brian Lo added, “Residential projects, business development and cultural sites are flourishing in the western districts of Hong Kong Island, and yet many popular restaurant brands have little presence in the area. Sai Ying Pun is an exciting location for future growth and we are pleased to offer our partners restaurants more reach into this vibrant district and its surrounding areas. In the coming year, Deliveroo will be looking for more opportunities to expand into Kowloon and the New Territories to bring our Food Market concept to more customers across Hong Kong.” The Sai Ying Pun location is expected to employ up to 30 on-site staff in its kitchen and customer spaces. Deliveroo is fully committed to growing its Food Market concept in Hong Kong and is currently exploring new locations around the city.