There’s nothing quite like the joy of a home cooked meal, but then again, if there’s anything second best or even close enough, it’s ordering in from your favourite restaurant. From plunging our fingers into a hot bowl of khichuri to biting into burgers that threaten to spill from its folds, we don’t quite care where we’re eating though. It doesn’t matter if it’s a plate of phuchka by the sidewalk on a crowded New Market street or Volcano Rolls from the eclectic Sushi Samurai, just as long as we can eat, and on time. If there’s one thing we hate as much as we love food, it is Dhaka’s horrendous traffic. Despite being deep in the throes of our nationwide food obsession, beating traffic to get to our destination not only kills the mood but also our appetite. Add to that are waiting for lines at restaurants and you’ve got a recipe for disaster. In comes, Hungrynaki and Foodpanda with their easy, speedy delivery services, and your meal is a mere hour away from being on your lap and gently plopped in your mouth. Delicious. Cheap. Convenient.
But it makes one wonder, are we becoming a delivery nation that can outpace the boom of dine-in orders? N R Vicky, the owner of Tokyo Express, The Mirage, Little Korea, and Melange, with eight years in the business, says we certainly aren’t. “Although delivery orders are on the rise, sales from dine-in orders still beat deliveries. Despite the fact that traffic conditions make it increasingly difficult to go out, people still make the effort.” With the millennial generation fuelled by the social media frenzy involved in eating out, Vicky believes it gives them an opportunity to feed that need.
Nadvie Ahmed, the partner at Rice&Noodle and Madchef, attributes the rise in the eating out culture to the fast-paced lifestyle we now have. “Cooking at home is becoming more of a luxury these days – it’s time consuming and not always as convenient, especially if you don’t have house help.” Although the takeaway culture is booming, those who want to get out to eat will do it come hell or high water, he argues. Getting on the delivery service bandwagon was also an easy decision for Ahmed since around 10% of sales for Rice&Noodle’s Dhanmondi branch comes from deliveries with the figure standing at 30% of their Express branch.
Although deliveries provide a relatively small portion of the overall business, restaurateurs are quick to embrace the movement to accommodate off-premise dining. “As we didn’t have our own delivery system, it seemed convenient than and we ended up partnering with the apps. Initially, the percentage was low, but over the years, they’ve built their image and their reach. Although it isn’t as profitable as the sales cut retained by the apps are relatively high, the overall increase in sales is still profitable enough to partner with them,” explains Vicky.
“On average 10-12% of sales come from deliveries alone,” shares Labib Tarafdar, the partner at Madchef and Yum Cha District. With four years in the business, Tarafdar joined hands with both Foodpanda and Hungrynaki in 2014, to reach more customers via services that are cost-efficient and hassle-free. “Since its commission based and not a fixed amount per month, it is always profitable to partner with them.”
While some restaurants are now set up with deliveries in mind, others quickly adapt so as not to be left behind. Rahul Raad Haque, owner of Boro Bhai’s, a freshly opened food stall in Bashundhara R/A has decided to get into talks with both Hungrynaki and Foodpanda. “Although we have just opened, I know it’s vital for a business to partner with delivery apps,” he explained. Offering a range in Bengali food – khichuri, kala bhuna and the likes, Haque believes that delivery will contribute to a major part of sales, especially in an area like Bashundhara R/A where the student population is high.
Interestingly, it was found that fast food items such as burgers and pizza get the most orders, followed closely by Bengali food. “Bengalis love their Burgers,” says Tausif Ahmad, Founder, and COO of local delivery service Hungrynaki. In the business since 2013, he adds that they’ve never received more orders for any other item as much as they’ve received for burgers. “Pizzas are a distant second, followed by Bengali specialties such as biryani, khichuri, and tehari.” Starting out with merely 30 restaurants only delivering in the Gulshan—Banani-Baridhara, tri-state area, till date they’ve delivered from more than a thousand restaurants covering most parts of Dhaka, Chittagong and Sylhet.
Ambareen Reza, co-founder of Foodpanda concurs, stating that fast food items have the highest demand. “Recently, Japanese cuisine has also gained a lot of popularity,” she adds. In the business for four years, Foodpanda is now part of the largest food delivery group in the world, with their Bangladesh team growing from four to a staggering 300+ employees, including over 250 delivery personnel.
“I think previously the takeaway or orders would happen offline, ordering over the phone or sending someone to pick up the food. It is now far more convenient to order food with the tap of your fingers. The price customers pay on Foodpanda is the same as you pay in the restaurant, sometimes Foodpanda prices are better if you consider the deals running on the platform. In addition, as our economy continues to develop, we see a rise in consumption, change in people’s taste palette craving for variety, scarcity in finding domestic help and the need for convenience which makes ordering-in the easier option.”
For delivery giants like Foodpanda and Hungrynaki, the real challenge isn’t beating traffic; rather, it’s managing the logistics. “Although traffic does make it difficult to deliver on time, dealing with restaurants to make them serve food on time is a bigger challenge,” Tausif shares. With most orders peaking during lunch hour and late evening till dinner time, 3pm-5pm turns out to be the slowest hour for Hungrynaki.
As for Foodpanda, Ambareen shares that restaurant and rider compliance play a big role in getting food delivered on time. Despite these minor hiccups and shortfalls, she expects the delivery service industry to continue raging forward. “Online food ordering has experienced tremendous growth in our country. We see a growing trend of online orders becoming a part of the daily lifestyle among the urban demographic. Given the choice and convenience that Foodpanda offers, food delivery has a very positive future ahead.”