Nam Ik-woo CEO: "Lotte Eats Must Fight for Survival" ... Strengthening Delivery Menu to Overcome Crisis

Popular 'Lotte Eats' for Serving and Delivery After Online and Offline Orders
Increasing Delivery Demand... Focus on Launching and Offering Various Delivery Menus

[Asia Economy Reporter Lee Seon-ae] Lotte GRS is focusing on the efficient operation of its integrated brand application (app) and strengthening delivery menu options. This follows the directive from Nam Ik-woo, CEO of Lotte GRS, emphasizing the need to build competitiveness through digital transformation to seize opportunities amid the rapidly expanding contactless trend after the COVID-19 pandemic. CEO Nam has shown a strong commitment to continuously expanding the digital transformation system in line with changes in customer lifestyles.

◆ Lotte Eats Targeting the Untact Era = According to Lotte GRS on the 30th, the order rate on the integrated app 'Lotte Eats' is showing a rapid upward trend. Sales grew by 157% in March, 17% in April, and 53% in May, playing a solid role in increasing orders in line with the untact trend changes. In February, Lotte GRS launched Lotte Eats, an integrated app that allows orders from multiple brands previously operated independently through separate apps. Since its launch, it has recorded over 2 million downloads, with cumulative orders approaching 1 million.

Lotte Eats is a brand-integrated app focused on customer convenience, allowing users to access five brands?Lotteria, Angel-in-us, Krispy Kreme Doughnuts, TGI Fridays, and Villard Charlotte?from a single app. Notably, the delivery app service, previously available only for Lotteria, has been expanded to all five brands, enhancing the ordering system for both online and offline stores with features such as ▲ delivery service ▲ reservation and table ordering service ▲ chip (stamp) accumulation function. To increase customer convenience, the app offers five easy login methods (Lotte Members ID, fingerprint, PIN number, mobile phone number, Face ID), post-accumulation of chips if not initially collected, electronic receipts eliminating the need for paper receipts, and a drive-thru feature that registers vehicle information during order via the Eats Order service to provide fast and accurate product delivery.

The app also introduced an integrated prepaid card function. When holding a prepaid card, users can make payments both online and offline across the five brands by displaying the barcode. The prepaid card status and balance can be quickly checked from the Lotte Eats main screen, providing convenience. A Lotte GRS official stated, "Lotte Eats, which allows pre-ordering via the app and in-store pickup, reduces waiting time and minimizes face-to-face contact, receiving positive feedback," adding, "We will operate it efficiently to establish it as a major sales channel in the untact era."

◆ Strengthening Delivery Menus = Lotte GRS plans to continuously introduce new products that can strengthen delivery menus for each brand to overcome difficulties caused by increased delivery orders due to untact ordering and the economic downturn from COVID-19. In March, Lotteria launched '1-in-hon-dak,' made from 100% domestic chicken. Unlike pieces of chicken, this product is a whole fried chicken. The '1-in-hon-dak menu' sold over 100,000 units within a week of its release, with about 60% of orders coming through delivery. Following the single-serving chicken, products like 'Cheese in the Egg' have been continuously released.

Angel-in-us also launched 'Banh Mi' tailored for untact orders as a meal substitute. Banh Mi focuses on providing a "simple yet hearty meal" for busy modern workers such as single-person households and singles, and was developed with the concept of a "meal sandwich" that customers can enjoy regardless of location?store, home, or workplace?with delivery available. Angel-in-us actively utilizes online ordering channels by offering a Fresh Daily set that combines coffee and meals, available through stores and delivery apps.

Lotte GRS expects Lotte Eats to be an alternative to overcome poor performance. Lotte GRS's sales last year were 839.9 billion KRW, remaining stagnant compared to 858.1 billion KRW in 2017 and 830.9 billion KRW in 2018. This year, performance deterioration due to COVID-19 is inevitable. The strategy is to efficiently operate Lotte Eats in the second half of the year to minimize the impact of poor performance.

A Lotte GRS official said, "Since starting test operations of unmanned kiosks at Lotteria in 2014, Lotte GRS has been striving to integrate food tech into the food service business," adding, "We expect the business structure of the food service industry to change rapidly after COVID-19, and we plan to quickly expand digital transformation systems that can be adapted to the market."

This content was produced with the assistance of AI translation services.