In the information age, smartphones and the internet basically rule our lives. At a time when everything from a pin to plane can be summoned over one touch and swipe, then why should your customers be left out of the convenience of ordering food online? This is where online food ordering platforms like Zomato, Swiggy, Foodpanda have come into the picture and changed the game. With the advent of these apps and companies, restaurant owners big and small can breathe a sigh of relief as a simple onboarding with these companies can not only generate a lot more orders but also help in delivering them to a larger pool of customers. This article will tell you how to increase your online sales.
The Complete Guide to Partnering With Online Food Ordering Platforms
It’s no secret that places like Zomato and Swiggy have become the first choice of customers looking to order food online and with the kind of options available there on these apps, it’s more likely than not that the customer won’t pick up the phone to especially order from your outlet if you aren’t present online. In this case, tying up with online food ordering platforms and delivery services becomes very important.
But, how does one go about it? Speaking on condition of anonymity, an executive from Zomato’s online ordering team spoke to The Restaurant Times and said that currently, online ordering is generating about 70% of orders for all restaurants on average.
“The competition is so intense right now among restaurants that nobody wants to be left out in any medium where they can generate orders. At this time Zomato and Swiggy are the mainstays of almost all strong places for their orders especially in non-peak hours,”
He further broke down the steps involved in getting on board with the online food ordering platforms like Zomato or Swiggy:
- A restaurant drops an inquiry on the company’s contact us pages or call in the customer care numbers about starting with online ordering.
- A salesperson from Zomato/Swiggy, however, gets in touch with you before you get to them due to the aggressiveness of sales teams of both such companies who spot new restaurants with potential for sales before restaurants have to dial in those numbers.
- It’s only in the case of a dark kitchen (places which work only as delivery restaurants without a commercial presence), people might need to speak to a customer representative.
- The salesperson then meets with the restaurant owner to understand the feasibility and expectations of the owner regarding orders, cost, and contract terms.
- Once the contract terms are finalized and signed, a couple of primary documents are collected and analyzed in 2-3 days.
- The restaurants then usually go live on these apps within less than a week.
Documents Required for Partnering With Online Ordering Platforms
Documents required for signing up on online food ordering platforms include some basic certificates and identity details but they could differ from company to company and even in different localities depending on the local requirements. Here’s a primary list though.
- You need to have an FSSAI license certifying the quality of food to be able to sign up.
- You require a PAN card if the small business or in the company’s name
- A canceled cheque for the business
- A copy of your bill for the details of charges and taxes
- Owners’ details such as photographs, identity proofs among other things.
Before signing up, however, a couple of things need to be kept in mind. These particularly belong to the cost of doing business with food technology companies and the cost is usually in the form of a percentage commission from the total amount of each order.
Commissions Charged by Online Food Ordering Platforms
Here’s a ready reckoner on the commissions charged by Zomato and Swiggy. The point to note here is that these values are averages based on anonymous feedback from restaurants and differ from place to place depending on the frequency of orders and availability of delivery personnel.
- Zomato: Zomato charges anywhere between 10%-15%* depending on the service provided and the area. For instance, if a restaurant lists exclusively on Zomato for online ordering they pay 7%-8% while if they choose to work with others as well, the commission goes up to 12%. And if Zomato also provides its delivery fleet to deliver the orders, the commission can reach up to 18%.
- Swiggy: Meanwhile, Swiggy usually charges in the range 15%- 25%* in mature markets like Bengaluru, it can charge up to 16% in places like Delhi if the restaurant is new to the ecosystem. Meanwhile, the fee can drop to even 4%-7% on Swiggy if it wants to bring a certain restaurant onboard such as local specialties. For example, Meghna Foods in Bengaluru for their Biryani.
With both Ola and Uber entering the segment, the competition is going to intensify further. Although the food tech has seen tremendous growth over the last few years, with the volume of daily orders increasing from 200,000 in 2016 to 450,000 in 2017.
While having a presence on such online food ordering platforms is a must as it helps you increase your reach, it is also a good idea to have your website or a mobile app that will let your customers order food online.
Find out how to have your own online food ordering system here.
*The figures mentioned are approximate and are subject to vary from restaurant to restaurant. The information has been collected from different restaurant owners and the food tech company’s employees.