A recent report indicates that eight out of ten restaurants nationwide that offer delivery have partnerships with delivery applications. (Image : Yonhap)
SEOUL, March 24 (Korea Bizwire) – A recent report indicates that eight out of ten restaurants nationwide that offer delivery have partnerships with delivery applications.
Baedal Minjok, Baedaltong, and Yogiyo issued a joint report that revealed statistics about restaurants offering delivery services. The researchers investigated 702 restaurants nationwide from November 2015 to February 2016, to see how delivery applications were used and the economic effects of their implementation.
The report disclosed that 80 percent of the restaurants investigated had partnered with delivery applications.
As if to prove the popularity of chicken among Koreans, 89 percent of chicken delivery restaurants used delivery applications. Pizzerias ranked second, followed by restaurants serving jokbal (pig trotters), bossam (steamed pork), Korean food, and Chinese food.
Restaurants teamed up with delivery apps turned out to benefit from an average increase in annual sales of 5.04 million won. This was in stark contrast with the revenue drop (an average of 17.88 million won annually) for restaurants that did not make use of a delivery app.
Delivery app-affiliated restaurants were hit by an average loss of 3.72 million won due to the outbreak of Middle East Respiratory Syndrome (MERS), but thanks to an increase in their number of deliveries, overall sales actually jumped by 1.56 million won.
Restaurant owners picked delivery apps as the most effective means of advertising thanks to the direct boost to sales. Flyers, internet marketing and local shopping guide books followed as the preferred means of advertising.
However, delivery apps had their merits, as typical services only cost an average of 438,000 won, while printing out flyers costs around 715,000 won.
More than 80 percent of the restaurants answered that they plan to continue their partnership with the delivery apps, while only 4.8 percent answered they wanted to stop using the service.
Kim Bong-jin, the head of Baedal Minjeok’s parent company Graceful Brothers, hopes that the apps can help improve the delivery industry. He thought it was a pity that restaurants were incurring unnecessary expenses without properly calculating the value of their marketing expenditures.
Na Jae-won, the head of Yogiyo and Baedaltong, expressed his belief that delivery applications helped increase restaurant sales. “The data clearly shows that delivery service helps boost sales. We hope that the three delivery applications can provide better service to consumers and help out businesses at the same time.”
By Kevin Lee (kevinlee@koreabizwire.com)
