Emerging as the main consumer group of the millennial generation
Takeout increases through delivery app pre-order systems
Increase in dining establishments using proprietary apps and kiosks
[Asia Economy Reporter Choi Sunghye] As the untact (contactless) consumption trend sweeps through the dining industry, takeout?ordering food from restaurants and picking it up?is also becoming a mainstream untact consumption method. Since even phone orders require interaction with staff, contactless services using apps are gaining popularity.
According to Baedal Minjok, a delivery app, as of this month, about 40,000 dining establishments are using 'Baemin Order,' introduced in November last year. Baemin Order is an ordering service within the Baedal Minjok app that allows customers to order and pay without a menu when on the way to the restaurant or seated at a table. Many consumers use it for takeout services.
A Baedal Minjok representative explained, "By mid-December last year, the number of dining establishments using Baemin Order surpassed 30,000, and an additional 10,000 were newly registered within two months. Consumer orders last month also increased by 54% compared to the previous month (December)."
According to Baedal Minjok, the usage rate of Baemin Order among individual restaurant owners is about 75%, significantly higher than franchise businesses. This is because there is no delivery fee, reducing economic burden. Kim Geonwoo (59), who runs a Korean restaurant in Guro-gu, Seoul, said, "After using Baemin Order, takeout sales increased by about 10%. Unlike phone orders, it uses a prepayment system, so there is the advantage of not worrying about 'meoktwi' (a term meaning 'eat and run')."
Franchise companies are also actively participating in contactless services. A bhc Chicken representative said, "We started using Baemin Order from the 10th. We introduced the service to eliminate delivery fee burdens for customers and to increase sales for store owners." The jjimdak brand 'Doojjim (Two Chicken Jjimdak)' has also started using Baemin Order.
◇Flood of Proprietary Apps and Kiosks= Coffee shops are also adopting contactless services through their own apps. Starbucks Korea's mobile app ordering service 'Siren Order,' launched in May 2014, has surpassed 5.6 million members. The cumulative number of orders exceeds 100 million, with 25% of all orders made through Siren Order.
Droptop recently launched the 'Droptop Mobile App,' adding ordering services and enhancing member benefits. Twosome Place's 'Mobile Twosome' includes 'Twosome Order,' which allows customers to select the nearest store and order and pay for desired menu items, and 'One-Touch Order,' a super-simple ordering service that lets users reorder previously ordered or pre-registered menu items with a single touch. Hollys Coffee operates a mobile remote ordering service called 'Hollys Smart Order.'
Famous fast-food chains such as McDonald's, Lotteria, and KFC are increasingly adopting kiosks (unmanned integrated information systems). Their kiosk adoption rate is about 70% or higher, and the trend is toward eliminating staff who take orders.
◇Delivery and Takeout Without Visiting Stores= While the usage rate of contactless delivery and takeout services is increasing annually, the number of consumers visiting stores is steadily decreasing. According to the '2019 Dining Consumption Behavior' survey conducted by the Ministry of Agriculture, Food and Rural Affairs on 3,075 dining consumers nationwide, the frequency of dining out visits decreased from 9.9 times in 2017 to 8.9 times in 2018 and 7.8 times last year, but delivery and takeout increased gradually from 4.9 times in 2017 to 5.1 times in 2018 and 5.2 times last year.
An industry insider said, "The millennial generation, which prefers untact communication, has become the main consumer group, and with the recent spread of fear over safety due to COVID-19, contactless services are expected to become even more active in the future."
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