Home Business News How restaurants can fight spiralling energy costs and bring back consumer spending

How restaurants can fight spiralling energy costs and bring back consumer spending

by LLB Finance Reporter
6th Sep 22 12:32 pm

Multiple industry associations and bodies including the Federation of Small Businesses and the Night Time Industry Association (NTIA) have recently warned that spiralling energy costs are driving cafes, restaurants and independent shops all around the country to the edge of survival, which makes cutting unnecessary costs a key priority for many hospitality businesses.

Zhong Xu, CEO and co-founder at global foodtech scale-up Deliverect that simplifies online ordering for more than 20,000 locations across 40 markets, feels that adding online delivery capabilities could be the answer to helping minimise inflationary pressures on business more widely. 

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Xu said, “In the age of inflation where dining out becomes a luxury and consumers pull back on spending, consumers will increasingly view take outs and delivery as a more affordable luxury.

“Whilst challenging from a macroeconomic context, the current status quo presents an opportunity for restaurants, bars and independent shops to arm themselves with delivery capabilities to serve an improved online ordering experience.

“The online food delivery market has seen significant growth over the past years, and it has been noted that COVID-19 propelled the industry years into the future, as millions of people in lockdown across the globe started ordering (more) food online.

“As we navigate spiralling energy costs and as the cost of living crisis continues to bite, restaurants who maintain an edge where their online delivery services are concerned stand the best chance of thriving as we progress into 2023.

“To gain confidence in this area, a reliable online delivery technology partner will be key to deliver long-term success and restaurants must ensure they have the tech in place for online ordering, kitchen organisation, delivery logistics, and menu management –  less obvious but vital components for an efficient delivery service.”

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