Chapter 1: Taking your milk tea shop online


Average Spenditure
Total Users
Much More

Finding your next Top Location (A Location)

Are you seeing the long lines of FoodPanda and Grab riders in front of your big competitors milk tea shop? We know that must look absolutely amazing to have so many riders buying milk tea online.

We saw that as well and after seeing every single day so many riders parked we were starting to calculate how much they would earn from online orders. That curiosity kept us going and that eventually led to the pursuit of joining FoodPanda.

You have probably heard and if you read our milk tea book you know the 3 most important things for a shop is location, location and location. Yes you got that right location is key so repeating it 3 times to emphasize it. However, now comes the question: what location is the best location?

You might heard of top locations or A locations and B locations. This basically means the A locations are best locations where everyone walks and most foot traffic comes. Such as the ground floor in a shopping mall or besides a school is a top location. And B Locations are locations that are not that great such as a not busy corner or the 4th floor of a shopping mall.

However, what about online?

What is a great location online? Is Facebook a good place? Having your own website considered a top location or being the top on Google? Or being on a mobile app where hungry ad thirsty people like to order something? A great location ONLINE is a place where people many people go and are most likely going to BUY your drinks.

Being on top of Google is fine but not if one will order your milk tea what are you going to do? In that case the location is like the 4th floor in a shopping mall. Still acceptable but it is not bringing in the "moolahs" (₱₱₱₱), in that case it is just a fancy (digital) flyer.

You probably know that FoodPanda and Grab are a great way to get noticed online within your local area. If you are busy running your business you have no time for marketing and letting FoodPanda or Grab doing it for you is great. You of course pay for that but it is basically a free customer. As you only pay once they order and this system is great! If they sell you get your money minus their deserving (???) share. Yes those question marks is placed there for a reason. We will get to that later on.

How often are people ordering via Food Delivery apps?

20% orders food at least once a day.

Well, the market for food delivery is growing. And here you can find the number of how often people order via the famous food delivery apps. In a recent research of June 2020 you will find some numbers.

Honestly there should be no need to convince you at all that this market is a fast growing market but there were some shocking numbers that shows why you should consider to be on a food delivery platform. One of the most shocking thing was that there are 5% of the respondents that indicates to order more then once a day!

Frequency of ordering food from food delivery apps in the Philippines as of June 2020

The market of online delivery in the Philippines in US $.

With $ 68.5 million sales expecting in 2020.

The market of online delivery is expected to grow more for the coming years. And based on the previous number we know that $ 178 million (this us USD) has been spend on food ordering. Business is very good and the amount that people spend is growing yearly.

You will notice quickly that the food delivery platform and the direct to restaurant ordering is growing with million of dollars a year in the Philippines.

If a food delivery app expect to make US $ 68.5 million in sales would that not be a great place to be on? That is what you would describe as a AAA SUPER Location. Being on there means a piece of a 68 million dollars pie.

Expected Money Spend a year in millions of US $ in the Philippines

Explore the age brackets who prefer online food delivery.

Best market is in the age bracket of 18 ~ 44 years.

The people who order most commonly are between the age bracket of 18 ~ 44 years. They are consist of 70% of the market.

Age bracket of who orders food online in the Philippines

In conclusion.

You know who is your target market.

Now you have a lot of knowledge you can already see where the market is going and where your new customers are coming from. The numbers should convince you that this is a very good market and being online should definitely be part of you business marketing strategy. With many millions of orders to come. Time to go to the next chapter explore the different food delivery apps!