How This Cafe Achieved 2X Average Order Value During The MCO In Malaysia
The extended Movement Control Order is affecting a lot of small businesses in Malaysia.
Local cafe and restaurant owners have seen an over 80% drop in business since the Movement Control Order (MCO) was implemented on 18 March 2020 to help prevent the rise in coronavirus (COVID-19) cases.
These are challenging times for F&B business owners
Many F&B operators have been at a loss on what to do to increase sales during this time.
This included IDC KL, a small neighbourhood ice cream cafe in Damansara Jaya, Selangor.
Some problems that IDC KL and other F&B business owners faced since the MCO started were:
- decreased foot traffic to almost zero due to the MCO’s delivery and takeaway only restriction
- competition/low visibility on food delivery marketplaces
But IDC KL didn’t let any of these things bring them down.
Not at all.
What they did instead was to:
- move quickly after spotting other opportunities
- increase their online presence since people would be at home, and online most of the time
One thing in particular that they did was to…
Introduce a new food delivery option.
And interestingly enough, this is what changed everything for them.
Your food delivery partner takes up to 35% from your revenue #truestory
Yup, this is not a joke.
In Malaysia, major food delivery marketplaces take up to 35% of each sale from you.
Here’s a sales breakdown in the case where your cafe or restaurant makes about RM30,000 per month:
|Food Delivery Sales||What Your Food Delivery Partner Gets||What You Get|
|Total Per Day||RM1,000||RM350||RM650|
|Total Per Month||RM30,000||RM10,500||RM19,500|
That RM10,500 that went to your food delivery partner(s) could’ve gone to paying your:
So yes, 35% may seem like a small percentage if it’s just one order.
But down the road, it sums up to a lot of money, which doesn’t even go back to you, the small business owner!
Here’s the thing.
When you go on a food delivery marketplace, you’re not the only one there.
Other cafes and restaurants are listed there too.
Of course, not all small F&B business owners want to get on these food delivery marketplaces because of the high fees.
Instead, they turn to taking orders via WhatsApp or Facebook/Instagram.
These are free and easy options, but you’ll end up suffering when:
- a lot of orders come in from different platforms
- you can’t automatically sync orders with your POS system and kitchen printer
- you can’t keep track of your stock
This POS-integrated food delivery feature is known as Beep Delivery.
It allowed them – a small F&B business – to have their very own online food delivery platform with delivery and takeaway options.
Once enabled, IDC KL used various ways to drive their customers to their online food delivery store – https://idc.beepit.com/:
- SMSes to their existing customer base (a clever move by them because loyal customers spend up to 3 times more than new customers)
- daily social media posts via Facebook and Instagram
- special promos to increase the average order value
- and more!
“I’m really thankful for StoreHub for enabling Beep Delivery for us. We not only have over RM1,000 sales today (would have been RM0 if it was not for Beep Delivery), we also saw a 2X increase in the average order value! We are feeling hopeful, even during these times of uncertainty.” – Darren Tan, Owner of IDC KL (Ice Dreams Cafe) in Petaling Jaya
And remember the 35% cut your food delivery partner takes from you?
The awesome part here is that…
Beep Delivery charges A LOT LESS.
“Haaaa, but then wouldn’t it cost more to pay for a whole system instead of just a food delivery partner?”
Well, in cases where you pay a one-time fee for your entire POS system, then yes.
But, StoreHub is an affordable subscription-based POS software (it’s also cloud-based).
So your cashflow doesn’t get too affected by this, especially in these challenging times.
Now, this doesn’t mean that you should shun other food delivery marketplaces.
This simply means that you have another food delivery option that’s great for small F&B businesses.
After all, Beep Delivery was introduced 48 hours after the MCO announcement to help #SaveOurStores, because SMEs truly are the backbone of our developing economy.
The point here is to give small F&B business owners, like IDC KL and you, a fighting chance to survive what’s currently happening in Malaysia.
As Darren said, “We are feeling hopeful, even during these times of uncertainty.”.
So here’s to making business awesome for everyone!
In the meantime, please stay safe. 🙂