Wed, 22nd Aug 2018 07:00
22 August 2018
("BigDish" or the "Company")
Asian Strategy Update
BigDish Plc (LON: DISH), a food tech company that operates a yield management platform for restaurants, is pleased to announce an update on its Asian strategy.
· Grow Asian business through yield management
· The Company believe that yield management will transform the restaurant industry
· Restaurants can market discounted tables through BigDish
· BigDish will market new technology development in September
Further to last week's announcement on the acquisition of looloo, BigDish is preparing to grow its Asia business through marketing new technology, which is currently under development. In Asia, BigDish has determined that yield management for restaurants is gaining acceptance from both restaurants and consumers. Yield management is a dynamic pricing strategy that charges different prices at different times for the same product. Yield management transformed the airline industry in the 1970s and forever changed the way airline seats are sold. BigDish believe that yield management will transform the restaurant industry. The underlying driver behind any yield management strategy is incentive to influence consumer behaviour.
In Asia, the Company has identified that its most popular time slot is 9pm. However, in off peak times, restaurants can offer discounted tables of up to 50 per cent off the food only, the more off peak the time the greater the incentive. Even in busy periods restaurants can still have empty tables and a restaurant is able to market those tables at low discounts on BigDish.
The Company believes that yield management presents an opportunity to disrupt restaurant discount cards and voucher or coupon businesses. These old business models generate minimal to no data and are ripe for disruption. In addition, these old models offer little flexibility to restaurants and BigDish believes it is important to create a win-win solution for both restaurants and consumers.
In terms of demographic, BigDish has discovered from using its proprietary big data business intelligence platform that the most frequent users tend to be female between the ages of 24 to 39. The Company expects to see more growth within this demographic. The emerging markets in Asia are excellent growth opportunities for the Company as many of these countries have rising consumers spending and will consequently benefit the restaurant industry. The Company will provide a further update next week on its UK strategy and is on schedule to launch in Bath in September.
Aidan Bishop, Chairman, commented:
"The Asian opportunity is a big one for BigDish. It is an exciting part of the world in relation to young disruptive consumer tech companies. The business has low overheads with Manila being a great base of operation for our technology development, and we are also able to develop world class products at a fraction of the cost of what it would be in the UK for example.
"This gives us a huge advantage as we consider technology development to be at the core of our strategy, the Company has exciting plans for this and looks forward to updating the market in September."
Joost Boer, CEO, commented:
"I believe that within the next three years that dynamic pricing will become common place within the restaurant industry and restaurant membership and discount cards will become obsolete.
"It is encouraging to see early signs of acceptance already and we intend to stay at the forefront of innovative technology within this space."
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