Delivery Platforms Level the Playing Field for Small Foodservice Operators in APAC

The advent of food delivery platforms like FoodPanda, Grab, Swiggy, and Zomato has revolutionized the industry, increasing visibility for smaller operators and providing a more level playing field.

Jan 2, 2025 - 13:45
Jan 2, 2025 - 12:49
Delivery Platforms Level the Playing Field for Small Foodservice Operators in APAC
  • The emergence of food delivery platforms has shifted the competitive landscape in the food service sector, enabling small operators to compete with large brands.
  • Despite challenges such as higher prices and increasing platform fees, both large and small operators are benefiting from the popularity of food delivery platforms.

The restaurant industry is experiencing a significant shift in competitive dynamics, particularly in the Asia-Pacific (APAC) region. GlobalData, a leading data and analytics company, reveals that food delivery platforms are enabling smaller foodservice operators to compete with large brands.

Historically, larger food service chains have an advantage over smaller operators in terms of brand visibility and delivery capabilities. However, the advent of food delivery platforms like FoodPanda, Grab, Swiggy, and Zomato has revolutionized the industry, increasing visibility for smaller operators and providing a more level playing field.

The COVID-19 pandemic further amplified this trend, with delivery platforms allowing smaller operators to access a larger consumer base without substantial investment in logistics infrastructure. The popularity of these platforms aligns with results from a GlobalData consumer survey, where 40% of respondents stated that they were ordering from food delivery apps, a figure that increases to 48% among the 25-34-year-old age group.

In addition to enhancing visibility, these platforms encourage smaller restaurants to adopt new technologies to improve their service offerings, digital ordering processes, and customer engagement strategies. These changes have led to cost savings and improved service efficiency by leveraging the expertise of established delivery platforms.

Meanwhile, large multinational chains are also reaping the benefits of these delivery platforms, with many gaining orders while maintaining their own apps, loyalty programs, and delivery solutions. Despite challenges such as higher prices and increasing platform fees, it appears to be a win-win situation for all the stakeholders in the restaurant industry.