Enterprise Singapore (ESG) unveiled a Food Delivery Booster Package to support F&B companies in the republic. This move will help F&B businesses lower operating costs from their delivery and takeaway operations and transform their business models to meet the needs of digital-savvy consumers. The package aims to reduce the business costs of selling on three key food delivery platforms servicing local diners, namely – Deliveroo, foodpanda and GrabFood.
With the COVID-19 situation continuing to evolve in Singapore, the government is implementing additional measures to minimise further spread of the virus. Thus, from April 7-May 4, 2020, all F&B establishments can open only for takeaway and delivery. No dine-in services are allowed. With these new rules, sales and profitability of F&B outlets would be affected due to the drop in dine-in sales and the associated costs of using online food delivery platforms.
Ted Tan, the deputy CEO of Enterprise Singapore, explained that with the implementation of stricter safe distancing measures, the demand for food delivery would increase significantly. Estimates would be by as much as two to three times as compared to previous months.
Tan added that the Food Delivery Booster Package would enable operators to stay open for business and adapt their operations accordingly. This is also a good time for food operators to optimise their business models for online sales. ESG will be looking at other initiatives to help F&B outlets to build new capabilities to navigate the online space, he said.
ESG will fund five percentage points of the commission cost charged by the above three delivery platforms during this period. There will be no cap on the qualifying food delivery transaction value, the agency added. F&B businesses must sell food that was prepared on-premise for immediate consumption to be eligible for the package. Other candidates for the ESG package include smaller establishments like hawker stalls and cafes, to larger outfits such as food caterers and restaurants. ESG said it is also working on developing the capabilities of F&B businesses for the long-term, beyond COVID-19. These will include areas such as data analytics, marketing and menu engineering. (Image from Pixabay)
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