How to expand branches to meet delivery needs, reduce delivery costs, and get more customers

Branch expansion is another way to meet the delivery needs because the closer the shop is to the customer, the lower the delivery fee that the customer has to pay will be. This greatly stimulates food delivery orders. It expands the shop's customer base and increases the overall sales of the business. But... how can delivery sales be worth the branch expansion, which requires a large investment? Today, MHA has the answer.

1. If you want to sell delivery, you have to choose a location that meets the delivery needs.

Normally, we choose a location for opening a new store by considering the number of target groups passing through, the number of people living or working in that area. We usually consider locations with a dense target group within a radius of no more than 0-5 kilometers from the store. Because we sell food that relies mainly on customers coming to eat at the restaurant. But if the goal of branch expansion is to increase delivery sales, let's try expanding the radius for considering the location of the shop from the original 5 kilometers to 10 kilometers around the shop instead. Because customers prefer to order food delivery from restaurants that are within 0-10 kilometers away, which is a distance where delivery fees are not expensive and delivery takes no more than 30-45 minutes. (For Bangkok and cities with heavy traffic) If it is further away, customers will not be able to pay for delivery, and riders themselves will not be happy and will not want to accept work from our shop. Therefore, choosing a shop location must take into account the convenience of riders who will come to pick up food at the shop. You should also find a location where you can easily distribute products, as follows:

· On the road It can be a major road or a main road that is easily accessible. If it is in an alley, it must not be too deep. It is better to be close to or at the entrance of the alley.

· There are multiple entrances and exits. It would be great if it could connect to several main roads, for example, Songprapa Road, which can lead to Vibhavadi Rangsit, covering Don Mueang District, and Rangsit, Nonthaburi, and Chaeng Watthana on the other side. Both customers and riders can travel in many ways.

· There is a waiting area and motorcycle parking. Since it is the main vehicle for food delivery, there should be enough space to park 1-5 cars at the same time and there must be a waiting area because not all dishes can be served quickly. There will definitely be some waiting.

When considering, it is found that the location of "gas stations" is very interesting, especially gas stations with many people or near communities. Because these stations are usually on the travel route, in an easily accessible location, with parking, restrooms and convenience stores, which riders often stop to rest.

Or if you want to try renting a building to open a new branch in a community with a large number of customers, by opening a storefront to serve nearby customers and selling food delivery at the same time, it is an interesting option.

2. Make the storefront suitable for focusing on delivery sales.

What kind of store is suitable for selling delivery? From a case study Zen Corporation Group Company Limited (Public Company) Restaurant owner ZEN AKA Laotian spicy salad Which has problems in selling delivery due to the following main factors:

1. The nature of the food is not suitable for delivery sales. Because it is a restaurant designed specifically for dine-in, the food is not suitable for delivery, such as ZEN's sushi or AKA's barbecue buffet. Meanwhile, the restaurant's packaging is not designed for delivery either.

2. The location is not conducive to selling delivery. All of the shop locations are in shopping malls, which are difficult for riders to access. The location is not conducive to delivery. In addition, there are rental costs (shopping malls) and GP costs for delivery.

Zen Corporation Group Solve the game by creating a new restaurant business called "Chopping board" Focus on delivery sales. The shop has been determined since day one that 50% of sales must come from delivery, not eating in. It chooses to sell street food that uses good quality ingredients at prices that customers can afford. The location must be in an area where a large number of customers can access it and riders can easily pick up and deliver food.

Currently, “Kheang” is considered very successful, having expanded to 85 branches within 2 years and plans to expand to 100 branches soon. (Read more at “How to build a street food delivery brand of ‘Kheang’, successfully expanding to over 80 branches in 2 years” )

An interesting strategy of “Kheang” is that the shop will focus on the cooking area or kitchen with not many tables for eating. Choose a strategic location, focusing on shophouses near housing estates, near convenience stores or renting a shop in a gas station, which is much cheaper than in a department store and is also convenient for riders to come and pick up the products, allowing food to be delivered within 30-45 minutes. Invent and produce the shop’s own special sauce recipe to control the taste to be similar in every branch. Develop packaging suitable for delivery, microwavable, good heat retention, easy to hold and eat, and not harmful to the environment.

 

Tip: For restaurants that sell delivery, the important area is the kitchen. You have to organize the kitchen to flow and prioritize the work well, from the order receiving process, ingredient preparation, cooking, to packaging. The flow of the kitchen is very important. Whether the food is delivered slowly or quickly depends mainly on the flow. Try studying how to improve the kitchen to be suitable for delivery from the example case of Rhythm & Shabu restaurant with MHA Advice. Turn your business into a professional. Click => Rhythm & Shabu

3. Rent a Cloud Kitchen to add a delivery location

Cloud Kitchen is a shared kitchen that is available for rent to cook and sell food. Think of a food court or cafeteria that many restaurants rent to sell food, but only sell through delivery. Cloud Kitchen will prepare the kitchen space and facilities that are important for selling delivery food for us, which is very suitable for businesses that want to expand their delivery sales area to a new location but do not want to open another branch because of limited budget.

Cloud Kitchen examples and interesting data

· Cloud Kitchen Bangkok Providing a full range of Cloud Kitchen services by renting a kitchen and kitchen equipment, just rent a space and send staff to cook. There is a built-in delivery service, delivering in the Sukhumvit area and free delivery within 3 kilometers from the kitchen. And can deliver food to customers in this area within 15-20 minutes, covering Ekkamai, Thonglor, Asoke, Sukhumvit 71, which are residential areas with many offices and are important business areas. Renting a Cloud Kitchen here is an interesting option for restaurants that want to try to "move" closer to the Sukhumvit customer group without having to spend a lot of money. Because renting a building to open a shop in this area requires a lot of money, given the sky-high land prices.

· GrabKitchen It is a Cloud Kitchen that gathers leading popular restaurants in one place and cooks food for delivery through GrabFood specifically. Therefore, GrabKitchen has an advantage in that it has a very large customer base from the original service that the company already has. Currently, it covers delivery in the areas of Samyan Market, Thonglor, Lat Phrao, Pinklao, Sathorn, and Nakniwat, where customers can choose to order food participating in GrabKitchen every day from 8:00 a.m. to 10:00 p.m. within a delivery radius of 8 kilometers. The advantage of GrabKitchen is that there is no charge for kitchen space, as the kitchen equipment, including the refrigerator, must be taken care of by the store itself.