How Lola’s Cafe uses data to thrive in the competitive F&B scene

After 10 years in Singapore’s food and beverage (F&B) scene, Lola’s co-founder June Tan is preparing for the next decade of challenges.

To stay relevant in such a competitive industry, she has turned to data analytics to improve Lola’s menu, serve customers better, and inform its strategy. 

“It’s been a great journey, but it’s not without its ups and downs. And if we want to make it in the next 10 years, there are going to be more failures. Hopefully not so painful, but it’s a continuous learning process because people’s tastes and market trends change,” she said.

A backyard cafe going on the front foot

Lola’s—a neighbourhood cafe known for comfort food, baked goods, and specialty coffee—was founded in 2013 by June Tan and Foo Choo Kiat. They opened their first location on Simon Road, followed by a Holland Village branch in July 2022. 

It’s one of two food brands under the umbrella of Better Craft Co., which is run by June, Choo Kiat, and managing director Wei Ming Ching. The other brand is a dumpling-and-noodles concept, Dumpling Darlings, which has two locations in the city’s central business district. 

Lola’s joined Grab in the early days of delivery platforms to accommodate more orders and make the most of its kitchen. The cafe was always full, with average wait times of about 45 minutes, but the kitchen could serve more people. Getting on the food delivery platform widened its reach and maximised the capacity of its kitchen and staff. 

“We were lucky that we were quite young and open to trying different ideas,” said June.

Giving customers a reason to keep coming back

Every year, one in four F&B businesses in Singapore close shop. In 2022, 2,749 ceased operations. For those still around, it’s a constant battle for customers’ attention.

“One of our biggest challenges now is maintaining top-of-mind recall among customers,” said June, who steers the company’s marketing and branding efforts. 

“In the cafe industry, there are so many competitors, always new ones coming up. People go around to find new cafes because they want new experiences, new photos, new videos. I need to give them a reason [to keep visiting us].”

Aside from serving crowd favourites like pulled pork and avocado eggs benedict, joining Grab campaigns and running tailored ads have helped Lola’s stay visible and stand out from the competition.  During the Ready, Set, Grab! campaign from March to May this year, the company saw a 138 per cent rise in sales at its new Holland Village branch.

That was the only Lola’s outlet that was eligible for that particular campaign, which is a service for newcomers on Grab and gives them temporary access to a starter-kit of marketing tools to help boost their store visibility.

As part of  Ready, Set, Grab!, Lola’s got access to Grab customers that place larger orders more frequently and featured in a carousel on the app promoting meals under $10.

Increasing sales, connecting with customers through data analytics

Grab analytics clues June in on how customers are finding Lola’s, including what search terms people use. The data points shed light on what customers want and what’s trending in the food scene. 

Grab merchants use such information to decide what ads to run and where. They also learn how advertisement and sales channels are performing.

Grab allows Lola’s to know how the cafe performs  against the rest of the industry, giving it a better idea of how well it is converting customers and what are its strengths and areas for improvement.

Grab also provides Lola’s with suggestions to boost sales and cater to customers’ preferences. For instance, Grab recommended creating more bundles like family meals and lunch sets and putting them at the top of the menu so people wouldn’t have to scroll through a lot of other items first. Bundles have proven to be a hit with customers, with Lola’s signature box of assorted tarts becoming one of their most popular items since its introduction during the coronavirus pandemic.

Paving the way for growth

June said they are always on the lookout for ways to expand the business, whether it’s starting a brand or opening an outlet, but they need to be strategic. Some questions they ask themselves when evaluating a business opportunity include: Will the location meaningfully expand their delivery radius? Is a particular restaurant better suited in places with office crowds or in dense residential areas? Does accessibility and proximity to an MRT station matter, or will people with access to delivery services place orders online anyway?

With data analytics on their side, restaurants like Lola’s can better answer these questions and make smarter, more strategic moves.