Survey shows customers are more likely to blame the restaurant
Singapore, 20 July 2020 – A survey of 500 respondents based in Singapore showed that more than half ordered food delivery at least once a week. In addition, 40 per cent of the respondents had a problem with an order, and they were more likely to blame the restaurant than the delivery service providers (DSPs).
Conducted in February 2020, the online survey was led by National University of Singapore (NUS) Business School Visiting Professor Sherri Kimes, in collaboration with the Singapore Productivity Centre (SGPC). The online survey aimed to determine how Singaporeans were using DSPs and recommended strategies for restaurants to refine their delivery strategy. Respondents surveyed had to have ordered food delivery at least once in the past six months.
Key findings
The study found that food delivery may be gaining popularity in Singapore, with 94 per cent of the respondents citing convenience as the most important reason for using a DSP. Moreover, they were willing to pay an additional 15 per cent delivery fee for this convenience, especially if the menu prices for takeaway were lower and the price differential was framed as a discount. In addition, every one in five respondents used subscription services offered on DSPs. Among the reasons for subscribing, free delivery was the most important, particularly for younger respondents.
It was further revealed that 71 per cent of respondents placed their orders through their mobile phones and 86 per cent of customers ordered from restaurants they found on food delivery apps. While it is popular, customer service and recovery may be an issue. About 40 per cent of respondents encountered problems with their orders and 57 per cent of these respondents blamed the restaurant rather than the DSP.
Prof Kimes, who is also Emeritus Professor at Cornell University said, “I found the pricing results to be particularly interesting. The fact that respondents were fine with delivery prices being higher than takeaway prices and that they were fairly open to delivery fees suggests that restaurant operators might have some leeway in trying to recover the commissions associated with the delivery service providers.”
“This study is highly relevant to F&B operators as it provides insights on consumer behaviour and sentiments towards food delivery services. This can help operators to adapt and adjust their delivery operations to ensure both dine-in and delivery experiences are favourable for their customers. In addition, the study also revealed the consumers’ willingness to pay for food delivery. This would help F&B operators work on pricing strategies and encourage more sales,” said Mr Michael Tan, SGPC Chief Executive Officer.
Recommendations
Based on the findings, the study gave the following recommendations to restaurants and DSPs to improve productivity and services:
Prof Kimes will be writing a paper based on the survey findings. In addition, she plans to work with SGPC on a new survey about food delivery in Singapore – this time from the F&B operators’ perspectives.
Prof Kimes said, “My past study on restaurant self-service technologies in the United States showed that customers and restaurant managers can view these technologies rather differently. Hence it would be interesting to see if there is a similar disconnect on food delivery. We hope to use the results from both surveys to help F&B operators better understand how best to position themselves.”
For media enquiries, please contact:
ANG Hui Min Manager, Corporate Communications NUS Business School National University of Singapore Tel: +65 6601 5857 Email: huimin19@nus.edu.sg
SIM Siling Assistant Director Singapore Productivity Centre Tel: +65 9725 8246 Email: Sim_siling@sgpc.sg
About National University of Singapore (NUS)
The National University of Singapore (NUS) is Singapore’s flagship university, which offers a global approach to education, research and entrepreneurship, with a focus on Asian perspectives and expertise. We have 17 faculties across three campuses in Singapore, as well as 12 NUS Overseas Colleges across the world. Close to 40,000 students from 100 countries enrich our vibrant and diverse campus community.
Our multidisciplinary and real-world approach to education, research and entrepreneurship enables us to work closely with industry, governments and academia to address crucial and complex issues relevant to Asia and the world. Researchers in our faculties, 30 university-level research institutes, research centres of excellence and corporate labs focus on themes that include energy, environmental and urban sustainability; treatment and prevention of diseases common among Asians; active ageing; advanced materials; as well as risk management and resilience of financial systems. Our latest research focus is on the use of data science, operations research and cybersecurity to support Singapore’s Smart Nation initiative.
For more information on NUS, please visit www.nus.edu.sg.
About NUS Business School
The National University of Singapore (NUS) Business School is known for providing management thought leadership from an Asian perspective, enabling its students and corporate partners to leverage global knowledge and Asian insights.
The school has consistently received top rankings in the Asia-Pacific region by independent publications and agencies, such as The Financial Times, Economist Intelligence Unit, and QS Top MBA, in recognition of the quality of its programmes, faculty research and graduates.
The school is accredited by AACSB International (Association to Advance Collegiate Schools of Business) and EQUIS (European Quality Improvement System), endorsements that the school has met the highest standards for business education. The school is also a member of the GMA (Graduate Management Admission) Council, Executive MBA Council, Partnership in Management (PIM) and CEMS (Community of European Management Schools).
For more information, please visit bschool.nus.edu.sg, or go to the BIZBeat: Thought Leadership portal, which showcases the School’s research.
About the Singapore Productivity Centre
The Singapore Productivity Centre (SGPC) is a one-stop competency and resource centre supported by Enterprise Singapore (formerly SPRING Singapore) and is a wholly owned subsidiary of Singapore Productivity Association (SGPA). With a focus on the retail, food services and hotel sectors, SGPC’s vision is to be the go-to experts for enterprise excellence, playing leading roles to guide small and medium-sized enterprises (SMEs) in creating a roadmap for growth. With effect from 1st April 2019, SGPC has officially succeeded Enterprise Singapore as the National Productivity Organization (NPO) representing Singapore to the Asian Productivity Organization (APO). As NPO, SGPC is designated as the planning and implementing agency to coordinate productivity and innovation projects for and hosted by Singapore. Visit www.sgpc.sg for more information.
