A recent study conducted by the research unit at Rakuten Insight shows that Malaysians prefer to reduce dining out at restaurants instead of cutting back on food delivery when faced with economic pressures. From April 6 to 8, the study indicated that the percentage of those who would decrease their spending on dining out rose from 52.9% in March to 61.6% in April.
Conversely, the food delivery segment saw a slight increase, with the percentage rising from 30% to 32%. This trend reflects the priorities of Malaysian consumers amidst rising living costs.
Details of the Findings
The experience of dining in restaurants is comprehensive, encompassing social atmospheres and occasions, making it more expensive compared to ordering food through apps. According to the Commercial Research Director at Rakuten Insight, Min Yao Kong, the cost of a meal for two in Kuala Lumpur can easily reach 60-100 Malaysian Ringgit, while delivery costs range between 25-50 Ringgit.
Moreover, hidden costs such as fuel make the decision to dine at home and order delivery a more logical choice. With rising fuel prices, it becomes easier to justify staying home.
Background & Context
These findings come at a time when the Malaysian economy is experiencing increasing pressures due to rising global prices, particularly in light of the conflict between the United States and Iran and its impact on fuel prices. The Malaysian government, which has maintained the subsidized price of gasoline at 1.99 Ringgit per liter, recently reduced the monthly subsidy allocation for RON95 gasoline from 300 liters to 200 liters.
Despite this, 49% of survey participants reported that they were not affected by this change, as they typically use 200 liters or less per month. Meanwhile, 36% indicated that they are affected due to using more than 200 liters.
Impact & Consequences
These trends indicate a shift in the lifestyle of Malaysians, where food delivery has become a necessity for many households, especially for working couples and families under time pressure. As reliance on delivery services increases, the local market landscape may change significantly.
The importance of these findings is heightened in light of the economic challenges faced by many countries, as these trends may signal how consumers in various markets respond to price changes.
Regional Significance
These phenomena coincide with similar trends in some Arab countries, where consumers are facing comparable economic pressures. Amid rising prices, Arabs may also trend towards reducing dining out and increasing reliance on food delivery services.
Ultimately, these changes in consumer behavior in Malaysia reflect how economic pressures can influence their daily choices, warranting deeper study to understand these dynamics in different contexts.