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Insight of the Day: Can restaurants ditch aggregators and deliver success themselves?

Key Points:

  • Aggregator Challenges: Food delivery aggregators like Zomato and Swiggy have high commission fees and control customer experience, making it difficult for restaurants to build brand loyalty.

  • Direct Delivery Model:  This model allows restaurants to eliminate commission fees, control their brand experience, and own customer data for targeted marketing.

  • Success Factors: Successful direct delivery requires investing in a user-friendly online ordering platform, efficient logistics, and effective marketing strategies.

  • Success Stories: La Pinoz and Tossin Pizza are examples of restaurants that have successfully transitioned away from aggregators and thrived with direct delivery.

  • Future of Delivery: While aggregators will continue to play a role, the future is likely to see more restaurants embracing direct delivery to thrive in a competitive market.

Implications:

  • For Restaurants: Direct online delivery presents a viable and potentially more profitable alternative to relying on aggregators.

  • For Consumers:  Direct delivery may lead to more personalized experiences and loyalty programs from restaurants.

  • For Aggregators:  Aggregators may need to adapt their services and commission structures to remain competitive as more restaurants move towards direct delivery.

  • For Technology Providers: There is an opportunity for technology providers to offer solutions that empower restaurants to manage their own online ordering and delivery processes.

Overall, the article suggests that direct online delivery is a viable and potentially more profitable model for restaurants, but it requires careful planning and investment in technology and marketing.

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