F&B sector accelerating towards digital transformation

Food and beverage (F&B) businesses are quickly catching up with the wave of digitization by offering online or home service, proving the long-term benefits of the business model.

The sector has recorded strong growth in Vietnam recently, with some 540,000 F&B outlets established and a high volume of spending, at about $361 per person per month, according to a D’Corp report.

Many restaurants turned to online sales and home service to meet the needs of users due to the impact of Covid-19, while cutting staff and closing facilities to minimize the damage to the business. On the positive side, digital transformation has presented an opportunity for business owners to look back on how to develop and rethink their business model and orientation.

Some chain stores have adopted automated ordering systems, interacted directly with customers with chatbots, offered pre-paid e-wallets or bank cards, and provided home delivery through apps such as BAEMIN, GrabFood, and Shopee Food.

“Customer behavior has been changing,” said Mr. Nguyen Thai Duong, Marketing Director at iPOS.vn. “Building their own online sales channels is inevitable for businesses and almost mandatory for food businesses. This sales channel would help them proactively reach their target customers without spending money on other platforms.”

Despite this form of business proving to be efficient and offering long-term benefits, many F&B businesses are still to follow the path towards digitalization taken by society. Financial concerns are also a factor in why many have not yet invested heavily in digital transformation.

Many F&B businesses, however, have become aware of the situation and have quickly adopted new models to operate their businesses on both offline and online platforms.