Large restaurants raise discounts to fend off Swiggy, Zomato
Large restaurants raise discounts to fend off Swiggy, Zomato to balance the high commissions and search optimization fees being levied by the aggregators and lessen dependence on them; large restaurants have boosted the number of discounts and promotional offers by 15-20% on their apps compared to those supplied by aggregators Swiggy and Zomato. Restaurants can put up their digital services thanks to these foods tech platforms.
According to Dhruv Dewan, creator of Hashtag Loyalty, which runs ThriveNow, “we have gained 40% this quarter over the previous quarter, enabling restaurants to set up their direct ordering platform; we expect to see an additional escalation in demand in the next festive season.”
According to executives, orders through large brands’ apps are often between 10 and 25 percent of all orders, while smaller brands continue to rely significantly on aggregators for scalability. Director of Lite Bite Foods, which runs Punjab Grill, Artful Baker, and YouMee, Rohit Aggarwal said, “Our objective is to improve promotions and give more value through our delivery platforms to incentivize customers to transact and lessen dependence on more expensive aggregators.”
According to executives, there are significant advantages and disadvantages to the partnership between restaurants and aggregators. In terms of scalability and last-mile delivery, restaurants gain naturally from aggregators, especially mid-sized restaurants that lack the resources to organize their deliveries. Some companies that provide direct deliveries are also concentrating on the newer, subscription-based meal services and menu customization.
“It is crucial for restaurants to regain some control over their digital environment rather than relying solely on aggregators. As aggregators have flourished on discounts, which are almost exclusively paid by the restaurants, this will not only save them a ton on delivery expenses but also offer them access to more consumer data “Anurag Katriar, the CEO of Indigo Hospitality, said.
Additionally to third-party delivery companies like Dunzo and Shadowfax, which deal with restaurants directly or via logistics aggregators, brands are also delivering using their fleet. The owner of Social, Smoke House Deli, and Salt Water Cafe, Riyaaz Amlani, is the chief executive of Impresario Handmade Restaurants. He stated: “We are offering the best price on our platforms and our discounts are in the range of 20-25 percent.”
According to executives, orders through large brands’ apps can range from 10% to 25% of total orders, while smaller brands continue to rely significantly on aggregators for scale. In addition to third-party delivery companies like Dunzo or Shadowfax, which operate either directly with the restaurants or through logistics aggregators, businesses are also providing delivery services using their fleet.
