Large restaurants including Domino’s Pizza are now offering massive discounts and promotional offers of 15-20 percent to the consumers via their own apps as compared to the food delivery services like Zomato and Swiggy. As per a report by Economic Times, this is being done “to offset steep commissions and search optimisation fees being charged by the aggregators and reduce the dependence on them”.
One such example is Domino’s Pizza, which is now offering several “free rewards offers” on its own app on the weekend across delivery, takeaway and dine-in options. Additionally, McDonald’s, Social, Punjab Grill, deGustibus Hospitality, Street Foods of India, Wow!Momo and Pizza Hut are also offering huge discounts on their own apps.
Popular delivery partners Zomato and Swiggy charge a 15-30 percent commission on each order which cost more to the restaurants when compared to the commission charged by platforms like ThriveNow and Google-backed DotPe which only charge 3-5 percent. These platforms allow restaurants to set up their own digital services.
The report further reveals that by setting up their own apps and digital services, “orders from their own apps are averaging anywhere between 10% and 25%, though smaller ones are still relying heavily on the aggregators for scale”.
This is why large restaurants are inclining more towards their own apps. They plan to attract consumers with big discounts and promotional offers and reduce their dependence on such aggregators.
As per a statement by Anurag Katriar, chief executive of Indigo Hospitality, “It is extremely important for restaurants to take back some control of their digital landscape, rather than being totally dependent on the aggregators. This will not only save them huge delivery costs but also give them access to more customer data; aggregators have thrived on discounts, which is funded almost entirely by the restaurants.”
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