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Dec Penfold: how food and tech are changing the meal delivery business

By: Reading Time: 4 Minutes

The combination of food and tech has provoked enormous change in both the meal delivery industry and peopleā€™s eating habits globally. But ā€œweā€™ve not even scratched the surfaceā€, says Decā€™s Kitchen founder, Dec Penfold

Over the last decade or so, the tech explosion has upended fundamentals of the human experience from travel to communication. Food is no exception as the battle between the convenience of delivery and the experience of restaurants rumbles on.Ā ā€œThe meal delivery market is stronger than ever,ā€ says Dec Penfold, founder of the food consultancy business Decā€™s Kitchen, and a speaker at the 12th edition of Rationalā€™s TrendTalk webinar. ā€œBut itā€™s such a new market that thereā€™s still so much that can be done. Weā€™re trying things, making lots of mistakes and seeing which model works best.ā€

Naturally, the state of play across the globe differs. In Dubai, the UAE, Saudi Arabia and Oman, says Penfold, food delivery is particularly big business ā€“ to the point where people are taking two or three meals a day on delivery as the norm.Ā The US has seen great advances too as the huge volume of operators and consumers means quicker scaling.Ā As for the UK, itā€™s at ā€œthe learning stage in a difficult climateā€, says Penfold. ā€œEveryoneā€™s learning from each other. That was one of the benefits of having the International Ghost Kitchen Conference IGKC ā€“ partnered by KTCHNrebel in March, in Amsterdam, Netherlands. We were able to learn from different people and different businesses around the world.ā€

Tim Vasilakis, Ben Schultz, Rohan Jetley on changes in the meal delivery business

Image: Dec Penfold, Nicolas Cann, Blobfish International

Food and tech united

The conference brought together leading restauranteurs, industry experts and third-party delivery providers to discuss emerging opportunities in the restaurant industry, and the role that ghost kitchens can play.

Penfold moderated a session at the event on Emerging International Brands and found a wealth of insights around the meeting of food and tech.Ā ā€œOne interesting thing from the conference was hearing from all the non-food-related people and businesses that are laterally plugging tech and marketing solutions into food brands,ā€ he says.Ā ā€œTheyā€™re seeing the opportunity of the food delivery market to use and adapt their products.ā€ Penfold cites the examples of the end-to-end kitchen management platform Grubtech; the ghost kitchen integrator ShoppinPal, an Indian company in the Integration Platform as a Service space; and marketing sampling company Blobfish International as interesting operators in the space.Ā ā€œAll these solutions that combine food and tech creating a better customer experience and adding value to the restaurant,ā€ he adds.

The future is hybrid?

Covid lockdowns may have brought third-party food delivery services firmly into the mainstream, but their influence and growth has not diminished in a mostly post-Covid market.Ā For operators, the struggle remains how to balance the clash of food delivery and more traditional hospitality operations.Ā ā€œItā€™s very, very difficult for operators to make margin. For an average restaurant, delivery aggregators are charging 35%,ā€ states Penfold. ā€œAs an ex-Deliveroo employee, I know the level of detail and amount of work that goes into it but itā€™s not helping restaurants to stay afloat. Something needs to be done.ā€

One area which Penfold finds particularly interesting is the hybrid ghost kitchen model. ā€œI really like the combination of having a bricks and mortar presence and a small shop front ā€“ but where the sole focus of that restaurant is delivery. Itā€™s built for delivery, but the high street presence is there for footfall, click and collect and brand awareness. I really believe in that model. At Decā€™s Kitchen, Iā€™m working on those models with a lot of clients because they see that as the future. Thereā€™s a focus on delivery and thereā€™s a focus on actual customer experience.ā€

Tim Vasilakis, Ben Schultz, Rohan Jetley at the International Ghost Kitchen Conference on changes in the meal delivery business

Image: Dec Penfold, Nicolas Cann, Blobfish International

Scalable, virtual brands

There is little doubt that the appetite for good food and the restaurant experience is not going away. But it is not enough simply to make great food then expect growth to follow.Ā ā€œFood has to be consistent, it has to be affordable, operationally doable at scale and volume,ā€ says Penfold, ā€œand it also has to be tasty.ā€

The International Ghost Kitchen Conference offered plenty of food for thought when it comes to creating virtual brands.Ā ā€œCasper is an interesting model,ā€ says Penfold. ā€œTheyā€™re housing all their brands under one roof and showcasing that. Theyā€™re not afraid to hide their virtual brands and delivery concepts as being separate. Thereā€™s a lot of potential from marketing these concepts together and leveraging them off each other ā€“ getting customer retention through another brand.ā€

Penfold also highlights The Athenian as a smart business that has been able to scale as one brand in the UK while exploring franchising models and licensing contracts across Europe. Likewise, KBox ā€“ a business with multiple brands over multiple markets that has now tailored that back to refine their offering.Ā ā€œItā€™s about experience and consistency. These are the core things you need to think about when scaling. But that balance is very difficult.ā€

 

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Food and Tech: shifting sands for foodservice

The food and meal delivery industries have weathered monumental change in a very short amount of time. Restaurants are struggling to balance a busy service with the Deliveroo, Uber Eats and Just Eat tablets pinging away in the kitchen. That wrestle between the two forces is not sustainable.

ā€œWhen you get people from a financial and tech background throwing money into an industry that they havenā€™t been a part of ā€“ thatā€™s a sign that things are going to go well,ā€ Penfold concludes.Ā ā€œThis is not something that is going to slow down. Youā€™ll soon be able to order your food through Instagram and Uber Eats will deliver it. The industry still needs restaurants, but I think that every restaurant and every kitchen on the casual dining level will be building with delivery at the forefront. There will be a divide between in-house experience and QSR (Quick Service Restaurant) experience. For me, thereā€™s some exciting things on the horizon from the hybrid ghost kitchen side.ā€

Further details:
Ā Dec Penfold is also a keynote speaker at the forthcoming TrendTalk live webinar, which focuses on ā€˜Looking over the edge of the plateā€™.

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