ZEN wades into food delivery with a 100 million baht revenue target Piloting with 3 restaurant brands and opening a branch specifically for delivery
ZEN Corporation Group Plc or ZEN is taking the plunge to compete for a piece of the food delivery pie following good reception from customers and is setting revenue target at 100 million baht this year. It is piloting the service under its three restaurant brands – ZEN, On the Table and Tummour – in Bangkok, Chiang Mai, Phuket and Pattaya. The group is also complementing the effort with a food delivery application, a call centre and a special food delivery branch, to increase service channels for customers.
Mr Boonyong Tansakul, Chief Executive Officer of ZEN Corporation Group Plc, a full-service food service operator, said that the group aims to increase its 2019 revenues by 15-20% over last year’s total revenue of 2.964 billion baht. It also wants to boost its profit making capabilities with plans to expand branches to increase sales. Thus, the group is looking to raise income through its full entry into the delivery service in response to Gen X and Gen Y consumer groups, the new generation of working age people that like to order in food. The group has set a 100 million baht revenue target from its delivery service this year which will help to shore up its profit margin by reducing fixed cost at existing branches.
At the end of last year, the company began to penetrate the delivery service business through three of its own restaurant brands – ZEN, On the Table and Tummour. It used the applications of four food delivery service providers – Food Panda, Line Man, Grab Food and Honestbee – and the phone numbers of each restaurant branch to do this. The response was good and the company consequently increased the number of restaurants offering delivery service in the first quarter of 2019.
The ZEN CEO said that in the second quarter of 2019, the group is preparing to offer delivery service through a four digit call centre to facilitate customers and serve as a channel to receive orders for branches located in the vicinity of distribution points. At the same time, it plans to increase the number of ZEN, On the Table and Tummour shops to offer more delivery service in Bangkok, Chiang Mai, Phuket and Pattaya, which are high potential areas with large groups of customers who like to use the food delivery service.
Additionally, the group plans to open a stand-alone restaurant branch in Bangkok specifically for the delivery service, known as Delco (restaurants without tables). It is in the process of designing new food packaging as well as developing special menus exclusively for delivery customers. This will help to differentiate it from other outlets and increase its chances of improved sales.
“We view the delivery channel as having a good opportunity for growth in the future following the advent of application platforms that facilitate communication. In the past year, the assessment of the food delivery business is for an estimated total market value of 27 billion baht and it is expected that by 2022 this will grow two folds. That is why we cannot overlook the opportunity to increase revenue there. Since the group has a large number of branches spread throughout, this will help it to better reach and give service to customers,” Mr Boonyong said.
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