Twenty Hong Kong shopping malls have joined a program launched by Deliveroo to help food & beverage tenants survive the coronavirus by expanding their delivery business.
Deliveroo expects the mall partnership program to generate at least HK$20 million (US$2.6 million) in incremental online sales for the restaurants, “a critical avenue of additional income” for retail food & beverage tenants hit by decimated footfalls as consumers avoid crowded places such as malls.
Deliveroo estimates about 300 restaurants will benefit from the program which has benefited from a $1.5 million investment by the company and partner malls.
The program will include a fast-tracked onboarding for mall tenants and cross-marketing opportunities for malls to work with Deliveroo.
The 20 shopping malls which have already signed on to partner with Deliveroo, include K11 Musea and K11 Art Mall from New World Development; Lee Gardens, Lee Theatre and Hysan Place From Hysan Development; East Point City, New Town Plaza, Popwalk, APM, World Trade Centre, Tai Po Mega Mall, Yuen Long Plaza and New Jade Shopping Plaza from Sun Hung Kai Properties; Tseung Kwan O Plaza and Nan Fung Place from Nan Fung Group; MegaBox from Kerry Properties; and Amoy Plaza, Kornhill Plaza, Fashion Walk and Grand Plaza from Hang Lung Properties.
Discussions are ongoing with other malls across Hong Kong to join the program.
Deliveroo says research of its 6500 restaurant partners has shown that online delivery channels which used to comprise 15 to 25 percent of turnover before the advent of the coronavirus crisis, now accounts for 50 percent total sales and for some, even more.
Besides the fast-track onboarding, Deliveroo has developed a voucher program enabling malls and tenants to create coupon offers at a reduced rate, encouraging higher spend from existing customers and drawing in new customers to place food-delivery orders with restaurants located inside partner malls.
Deliveroo and participating malls will develop locally relevant offers to drive demand and turnover for restaurant tenants’ delivery and pick-up services. User codes are being created for tenants of offices or apartments located above the malls and district-specific push notifications will be sent via social media and digital channels.
Deliveroo says it has already signed on about 150 new restaurant partners due to the incentives provided by the mall partners, representing more than 25 per cent of all new sign-ons since the onset of the coronavirus crisis.
In the case of one New Territories partner mall, restaurant tenants have seen sales increase by 1500 over the last fortnight.
“The 30 restaurant outlets in the property are projected to earn at least HK$15,000 to $20,000 more in sales than they achieved in February delivery sales,” Deliveroo said in a statement.
Brian Lo, GM of Deliveroo Hong Kong, said he is encouraged to see the positive momentum in engagement in the programme from leading developers and mall operators in Hong Kong.