4 Emerging Technology Trends In Vietnam's F&B Sector

According to the National Restaurant Association's report from this year, 76% of F&B enterprises have identified technology as a significant boost to their competitiveness, with many ready to increase their investments in tech solutions. Customers, too, favor technologies that make it easier and faster to order and pay.

Technology in the food and beverage (F&B) sector is pivotal in enhancing customer experiences, boosting marketing effectiveness, and streamlining operational efficiencies.

What are the favored technology trends in the F&B industry by both businesses and consumers?

Electronic Menus

Moving away from traditional paper menus, electronic menus (e-menus) display food and drink options with prices and vivid images on digital devices like smartphones, tablets, and POS systems.

The report highlights that 60% of dine-in patrons prefer using handheld devices for ordering, while 65% would like to use them for payments. Additionally, 63% of respondents are comfortable with making orders and payments through their phones.

Handheld devices not only offer convenience and autonomy to diners but also reduce the wait times for orders, enhancing the speed and efficiency of service.

E-menus facilitate more accurate and quicker updates, reducing errors and optimizing service during busy times. These menus also allow for easy modifications, enabling restaurants to adjust offerings and prices with minimal effort.

Examples of e-menu implementations are:

• Kiosk Systems: As seen in McDonald's, these are standalone ordering stations that have been popular in markets like the USA, Japan, and Singapore. McDonald's introduced these in Vietnam in 2017, marking the beginning of kiosk-based e-menus in the region.
• QR Code Menus: Customers can scan QR codes to access menus on their smartphones, a method adopted by restaurants such as Chang Kang Kung.
• Integrated Menus on Tablets: Tablet menus are prominently used by chains like Haidilao and those under the Golden Gate brand, including Manwah.

Integrating Augmented Reality (AR) in the F&B Sector

Augmented Reality (AR) has become widely recognized, particularly after the worldwide popularity of Pokémon GO!. In the food and beverage industry, AR is leveraged for marketing to transform user experiences, increasing engagement and strengthening the connection between customers and brands.

AR-Enhanced Menus

AR menus create a "phygital" experience, seamlessly blending the physical and digital worlds.

For instance, in 2018, BareBurger partnered with the tech startup Kabaq to develop an augmented reality menu. Customers can scan a Snapcode with Snapchat to see a 3D burger appear on their phone screens as an interactive sticker. This feature allows diners to virtually interact with their food before ordering, resize the AR model for fun photos, and share their experience on social media, enhancing the restaurant's visibility.

Moreover, these menus can provide additional information such as ingredients and calorie content, which is especially useful for guests with specific dietary needs or allergies, adding a layer of engagement and information to the dining experience.

Brand Storytelling Through AR

In Vietnam, a notable collaboration between Tetra Pak and Vinasoy in 2021 introduced AR to Fami soy milk products.

Consumers can download the PackStory app, scan an AR code on the Fami packaging, and select to view a story about soybean origins or the environmental benefits of the carton. This application of AR allows brands to tell their story directly through their packaging, deepening consumer engagement and adding a narrative element to the product experience.

These innovative AR applications not only enhance the decision-making process but also embed a compelling narrative into everyday products, building stronger emotional connections between the brand and its consumers.

Embracing Cashless Payments

In today’s world, simply carrying a smartphone with internet access enables you to make payments, from anywhere, at any time, highlighting the rise of the “cashless economy.”

Vietnam, with its young, tech-savvy population and a smartphone penetration rate boasting nearly 99.8% 4G coverage, is seeing a significant uptick in digital payment methods. According to the State Bank of Vietnam, in January 2024, the volume of non-cash transactions surged by 63.3%, and their value rose by 41.45% compared to the same period in 2023.

Digital payments offer unparalleled convenience and speed, benefiting both consumers and businesses alike. Consequently, sectors such as dining, hospitality, and tourism are rapidly integrating these technologies. Today, even mobile street vendors and roadside stalls facilitate QR code payments, making it easier for patrons to pay on the go.

Mastercard, a global technology company in the payments industry, is committed to driving the adoption of cashless payments across diverse sectors. As part of this effort, Mastercard created the ‘One Dines Free’ program exclusively for Mastercard cardholders around the world, encouraging food enthusiasts to embrace cashless transactions while turning every exceptional meal into a priceless moment.

This program is active across various partner restaurants in the Asia-Pacific region, including Hong Kong, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Diners who pay with their Mastercard card can enjoy a complimentary main course at these establishments.

Leveraging AI's Potential In The F&B Industry

The food and beverage sector faces relentless pressures from rising costs, stringent legal requirements, food safety standards, and the need to rapidly adapt to changing consumer behaviors, as well as new criteria like sustainability and ESG (Environmental, Social, and Governance) considerations.

To navigate these complexities, numerous companies are now deploying Artificial Intelligence (AI), and more recently, Generative AI, enhancing their operational processes.

Some key AI applications in the F&B industry:

• Data-driven Forecast: AI can scrutinize existing data to predict consumer trends, enabling businesses to refine their budget allocations and devise effective marketing strategies.
• Supply Chain Optimization and Quality Control: AI significantly improves supply chain management by enhancing transparency, reducing food safety risks, and suggesting operational efficiencies. AI also forecasts inventory needs and minimizes waste, leading to more streamlined processes.

A prime example of an F&B giant harnessing AI technology is Starbucks with its 2019 introduction of Deep Brew, a sophisticated AI platform integrated into the Starbucks Rewards app.

Deep Brew is an AI platform that personalizes the customer experience by analyzing various data points including location, time, weather conditions, purchase history, and app interactions. It tailors product suggestions and promotional offers to align with individual preferences.

Beyond customer-facing features, Deep Brew also manages internal operations such as staff scheduling, equipment maintenance, inventory control, and the scaling of store operations. This makes it a comprehensive tool that enhances both efficiency and customer satisfaction.

Flavors Vietnam 2024, a partnership between Vietcetera and Mastercard, is a five-month long celebration of Vietnam's F&B scene. An annual occurrence since 2018, this year's theme is focused on “Crafting shared culinary experiences.”

Part of Flavors Vietnam 2024, Flavors Conference 2024 themed “Building a Resilient and Thriving F&B Industry in Vietnam” is a one-day event, bringing together F&B experts and communities to celebrate and elevate the Vietnamese F&B industry.

Place: New World Saigon Hotel, 76 Le Lai St., Dist. 1, HCMC
Date: 9:00 - 16:00, Wednesday, September 18th, 2024.

For more details and to register for the event, visit website or contact us at @.

Special thanks to our sponsors and partners of Flavors Conference 2024: Title Sponsor (Mastercard), Major Sponsor (Diageo - Owner of Johnnie Walker, Tanqueray and Don Julio), Venue Sponsor (New World Saigon Hotel), Partner Sponsor (Nestle Professional and Tân Nhất Hương), Travel Partner (Be), Communications Partner (Vero Asean), Content Curator (Kamereo Vietnam) and Creative Partner (InSpace-Creative).

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