“The biggest challenge with any technology or business is if people give up too quickly.  Never give up. Technology is never perfect, new technology will come along.  New upgrades will come along, never give up, just keep pursuing.”

The COVID-19 pandemic has given birth to FoodTech trends that are changing the way global food brands approach the Southeast Asia market.  Find out the latest trends and how to scale in the region in our Techsauce Global Podcast talk with Martin Darby, the managing director of Express Food Group (EFG), a leading restaurant and delivery operator in Southeast Asia.

The Most Important Thing is to Listen 

Having worked in the kitchen since a young student, Darby knows the importance of listening.  From working in the kitchen in the UK to opening up the first 200 coffee shops for Starbucks in the UK, Darby knows that the little details count.  Having lived in Southeast Asia since 2006, he had worked in Singapore, Indonesia, and Vietnam before joining EFG to work with giant brands such as Minor Foods International Group, International Dairy Queen, and Krispy Kreme.  The biggest lesson he has learnt from his vast experience is the F&B industry is very people centric and it is important to tune into what is happening.

“It is absolutely critical when you join a business that you listen.”

Having worked in kitchens Darby makes a point to spend time at the stores trying food, talking to people, helping out in the kitchens, and exploring warehouses.  Darby says while all businesses have a lot in common, there are unique company differences, processes, and ways of doing things.  It is important to have an open mind and observe what is going on the ground before making important strategic decisions.  It is often the case that you might rush or be pressured to make a decision.  However you need to keep up to date with what is going on with business practices.  You cannot just rely on your experience.

When There is no Precedent, Make a Precedent 

Having worked over 30 years and having faced various challenges, Darby can honestly say he has never faced a crisis such as the COVID-19 pandemic where there was no definite end.  One of the main victims of the virus was clearly the F&B sector.  Darby right away had to deal with the supply chain issue, physical restrictions on supplies, moving employees, the inability to travel to Laos and Myanmar to meet his team, let alone his family in Singapore.  However Darby said the crisis tested his company, but brought his teams together to find solutions for a situation that he had never faced before.

“When there is no precedent, you have to make a precedent.”

Darby and his team managed to get all of the training online pretty quickly and video auditing was initiated.  There was a rapid adoption of smartphone auditing because travel to site was not possible.  There had to be another way to keep the business going, and that meant being creative and testing ideas.

Darby admits some ideas did not work.  However the most important thing was to keep trying and learning to stay ahead of the curve.

From COVID-19 Came Phenomenal Changes 

One of the phenomenal changes that occurred during the pandemic was a shift from Darby’s company being a cash based business to having nearly half of its customers adopting digital payments.  This obviously impacted the cash the company had onsite and changed its back offices.

Another change was the rapid use of QR codes, which was still a rather new concept a few years before the pandemic.  Over a short period of time people are now comfortable to scan QR codes to read the menu and pay for meals.  QR codes are now being used on many EFG’s marketing codes, something that Darby thought he would not use for a couple of years.  However now it is a norm because customers have embraced the technological revolution.

The pandemic has also sped up EFG’s plan to become an aggregator too.  Originally back in 2019, the company knew they had to make a shift from doing just pizza delivery services and so with the onset of the virus, the company boldly decided to become an official aggregator in early 2020.  In December 2020, it launched its e-commerce platform, Hungry that gained over 200,000 subscribers and had a turnover of 1 million dollars.

The last phenomenon was the use of smartphone auditing.  From physical checks, now everything can be done digitally with the use of geofencing as a safeguard.  Employees had to record, upload photos, and confirm audits with a signature on their smartphones.  Tech allowed the company to fix problems right away.

Change is not Perfection 

With any change, there is always the challenge of adoption.  While store managers took to the change like ducks to water because they used smartphones in their daily lives, it was the middle management that had difficulty in adopting a new way of doing things.

Like most things, it took time to get everyone on board.  However technology also lended a hand in making an easy transition.  Equipped with data gathered from the new tech, Darby was able to pinpoint who was having trouble with using the new system and send assistance to make sure they either followed through with the new process or knew how to do it.

“The biggest challenge for me is people giving up too quickly.”

Darby says you should never give up.  Technology is never perfect, but new solutions will come with new tech.  This is big coming from a person who admits he is not tech savvy.

“I don’t drive change, just for the sake of change.”

Darby says you are not blessed with success.  It does not come to you.  It is all about constant improvement.  To Darby, it is all about the details when it comes to the F&B business.  It is about changing the little things a thousand times.  Even though Darby makes big strategic decisions such as whether to buy a company or enter a market, it is the small things that consumers and the people that work with him notice.

“It’s the small things that matter.”

What’s Ahead for SEA?

There is great potential within the region as there is more connectivity.  The new rail route between China and Laos is expected to boost activity.  EFG already has plans underway to open more locations in Cambodia with 32 more stores, work with PTT gas stations on leveraging their Hungry app, and it sees potential long term opportunities within the Myanmar market despite the challenges the country is facing at present.

Scaling in SEA Relies on Cash, Resources, and Tech

There is no way around it.  For companies looking to scale within the Southeast Asia region, Darby says you have to consider a number of things.  You have to be able to attract and develop talent that will grow with your business.  You have to have the cash resources because growing a business is expensive.  There are also the back office ERP systems that you have to think of.  You also need technology to support your growth.  So it boils down to three main things: resources, cash, and technology. 

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Martin Darby, Managing Director at EFG Holdings

Martin joined RMA Group in 2019 as Managing Director of EFG Holdings. He is responsible for the EFG business in Cambodia, Laos, Myanmar, plus Palms Airport F&B Singapore. Martin, a UK National, is an accomplished global leader with a wealth of experience in the hospitality and retail industry. His extensive career in leadership positions with industry giants such as Starbucks Coffee, Marks and Spencer, Whitbread and Vodafone has taken him across the globe. Prior to joining RMA Group, Martin was the CEO of Niso Corporation, Vietnam and Celebrity Fitness, Indonesia, Malaysia and Singapore.

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