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5WS WITH KICKSTART by Frances Barsana
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Tech trends in retail that provide seamless digital and in-store experience
Frances Barsana helps companies in their digital transformation journey by connecting them with the most innovative technology startups in the market . She helps build strategic and commercial partnerships between best-in-class tech startups and top1000 corporations in the Philippines and in
Southeast Asia .
Kickstart Ventures is the wholly-owned corporate venture capital firm of Globe Telecom , the Philippines ’ leading mobile operator . Kickstart invests in early- to early-growth stage tech startups globally , and they serve as advisor to the Ayala Corporation Technology Innovation Venture Fund (“ ACTIVE Fund ”) established by AC Ventures together with various Ayala group business units . Kickstart collaborates with corporates and promising tech companies to create new pathways of innovation for businesses , customers , and the community . Kickstart Ventures invested in ZAP in 2012 .
In this issue , we sit down with CEO and Co-Founder of ZAP Dustin Cheng . ZAP is the mobile loyalty app that helps brick & mortar shops digitize their loyalty program . They are the mobile loyalty tech of over 2,000 brick & mortar shops and has 2.5Million users . Today , with limited mobility and access , they help their partners pivot and offer a hybrid retail environment of offline and online channel through ZAP Commerce .
What trends are you seeing in the retail F & B sector that you think is going to stick even after the pandemic ?
Digital Transformation – The pandemic has forced restaurants to finally embrace digital . From joining app marketplaces , launching their own ordering websites and accepting e-money payments in-store-- restaurants are forced to adapt to have a shot at survival . On the consumer side , this shift has also increased digital adoption , with a sizeable segment of customers transacting online for the first time .
Home-based food businesses – Thousands of home cooks have sprouted all over Facebook , Viber , and neighborhood groups . They o ften times serve food at par or even better than restaurants which in turn makes restaurants feel pressured . These home businesses are also quite profitable - having no rent or overhead to pay . Reach is not a problem as well – with the help of social media and on-demand delivery , they are able to serve the entire Metro Manila from their home .
What are the shifts in customer behaviors ?
Consumer preference for take-out and delivery – Delivery used to be less than a third of a restaurant ’ s sales . Now it is not unusual to have upwards of 50 % of sales from delivery .
Consumers ordering through digital channels
Customers buying from home cooks via Facebook , Instagram and Viber Increased Grab and Foodpanda usage from both first time and repeat customers .
Consumer reception to ordering from the restaurant ’ s digital channels - whether through messaging or through the restaurant ’ s e-commerce store .
How are restaurants coping ? How are they protecting their business ?
Signing up with marketplaces to attract new customers
Launching their own online ordering channels - since marketplaces charge high commission rates , and given that majority of orders are delivery , restaurants are able to keep a higher margin for themselves . They use the marketplaces to attract new customers , then funnel the customers to their own channels for direct and repeat orders .
May be a simple Facebook or Viber ordering system
May also be their own e-commerce site to streamline the ordering process for both the customer and the staff Limiting operations to key cities . Given that majority of sales are delivery , this allows them to maximize revenue while minimizing operating expenses .
Repurposing staff to deliver orders instead of laying them off . Since dine in is limited , restaurants use front of house staff to deliver food to customers instead .
Streamlining menu offerings make kitchen and supply operations more efficient . This minimizes wastage and kitchen overhead .
How are you helping the F & B industry ? ZAP provides an end to end solution for restaurants to go online .
We help streamline the manual order taking process usually done via Facebook or Viber by creating a merchant ’ s own e-store ( e-commerce store ). Customers browse the online catalog / menu and then pay online via debit / credit card , Dragonpay or Gcash . A COD option is also available .
When an order is placed , a ZAP tablet at the restaurant will ring to alert the staff regarding the new order . All orders sent to the tablet are verified and paid . This eliminates the hassle of asking customers to send screenshots of proof of payment and the need to reconcile with bank transactions . All the staff needs to do is to accept the order and start preparing the food .
Merchant has no in-house rider ? We ’ ve got it covered ! Within a few minutes , a rider from Mr . Speedy or Grab , our partner couriers , can drop by the store to pick up the order . The ZAP E-Store app automatically handles the rider booking , eliminating the need to manually create a booking for each order . The customer details including name , mobile number and address are automatically sent to the rider via the app . All the staff needs to do is hand over the order and let the rider take care of the rest .
ZAP has helped over 200 restaurants launch their own E-Store . Brands such as Vikings Group , Frankie ’ s , JiPan , Tokyo Milk Cheese Factory , Yi Fang , The Alley , Macao Imperial Tea , Yogost , King Chef , Lugang , Tuan Tuan , Brothers Burger and Mango Tree among others are thriving in the # NewNormal .
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