MAM

Why restaurants are stepping away from Swiggy, Zomato with #OrderDirect campaign

The food industry is experimenting with direct order platforms and even 'Dabbawalas'.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2021/05/25/orderdirect.jpg?itok=Y-UwWeI0

MUMBAI: Food delivery continues to be the mainstay for the restaurant industry hit hard by the pandemic with lockdowns and restrictions in place. While this has come as a boon for the food aggregators and delivery apps, it has also taken away a significant portion of the restaurants’ earnings by way of commission to these platforms.

With these food apps currently the only source of revenue for many restaurants across the country, restaurants fear the industry is emerging into a duopoly controlled by the food aggregators. With reopening of the hospitality sector looking uncertain in the near future, more eateries are looking to improve margins by trying out alternatives to aggregators Zomato and Swiggy.

The National Restaurant Association of India (NRAI) recently announced the #OrderDirect campaign to offer a democratized digital channel with low commissions, data ownership, control over policies, and an unbundled technology stack. NRAI president Anurag Katriar referred to the food aggregator apps as ‘virtual landlords’ last year highlighting the urgent need for the sector to reduce its dependence on such platforms. To safeguard their interest, restaurants are now collectively coming up with their loyalty scheme, bill settlement technology, and even a home delivery solution.  

Riyaaz Amlani- CEO & MD, Impresario Entertainment and Hospitality, who operates a chain of restaurants in several cities- is among the key voices backing #OrderDirect in India. From this week onwards, in a first-of-its-kind pilot project, his hospitality portfolio has teamed up with Mumbai’s Dabbawala for home deliveries. Riyaaz Amlani posted on LinkedIn, “Thrilled to announce a partnership that just fits. Dabbawalas know a thing or two about getting you your meals on time. They are severely impacted by the pandemic. Working with this awesome group of people is a privilege and a natural extension of our D2C push. #orderdirect “.

Impresario Handmade Restaurants is employing several dabbawalas in Mumbai who will service direct delivery orders received on Impresario’s tech-enabled platforms for their restaurant brands such as SOCIAL, Smoke House Deli, and Salt Water Cafe. Orders from these restaurants in the Lower Parel, Bandra, and BKC areas of Mumbai will be fulfilled by the dabbawalas starting this week in a seemingly win-win solution for both parties. The association will roll out in phases over the next few months, each employing more dabbawalas and strengthening the partnership.

This association also takes away from delivery aggregators such as Swiggy and Zomato. According to Amlani, ordering directly from restaurants (and not through aggregators) empowers the company to have direct and deeper relationships with its customers and saves on prohibitive commissions paid to the aggregators. “We are then able to pass on these savings to our customers and allow them to benefit from ordering directly. Now, ordering directly is also helping to employ our dabbawalas, who have lost their livelihoods due to the pandemic. We need to support each other through these trying times, and this is Impresario’s way of meaningfully extending a helping hand. We are hopeful that this association will trigger the rest of the hospitality industry to employ them too," he told a publication.

While recognising the positive aspects of what the aggregators are offering the restaurants and customers, Food Matters' founder and CEO India Gauri Devidayal, says “This relationship is no longer a partnership but rather is one built on dependency... This is not just about saving on commissions but also servicing an increased radius of delivery and therefore having the potential for higher revenues."

For restaurateurs looking to start their online ordering platform and reduce dependency on food aggregators DotPe, Thrive Now and Peppo are some of the tech partners supporting NRAI in this campaign. They are helping to build full-stack solutions and a sustainable hospitality ecosystem together with the restaurants.

Whether these innovations are feasible and able to democratize the food industry, only time will tell.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/19/sunil-thomas.jpg?itok=t003z797
CleverTap acquires San Francisco based company Leanplum

The retention cloud leader, CleverTap on Thursday has announced that it has signed definitive agreements to fully acquire San Francisco based Leanplum, a leading multi-channel customer engagement platform, for an undisclosed amount.

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/19/cashaa-logo.png?itok=hG-kuU77
Cashaa exits from Unicas

The crypto neo bank, Cashaa, has announced its exit from Unicas. This is Cashaa’s maiden attempt to enter the personal crypto-banking market after becoming a market leader in B2B crypto banking.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/19/deepflux_1.jpg?itok=QY-wlIvD
PivotRoots acquires DeepFlux

The digital marketing agency, PivotRoots has acquired DeepFlux, a MarTech consultancy, for an undisclosed amount. The company will integrate DeepFlux into its Martech lab and consulting division, PivotConsult, in line with its vision to build a result-oriented marketing lab of the future.

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/19/99.jpg?itok=UZLE6Kpq
CarDekho appoints Parthasarathy VS as independent director

Auto-tech company CarDekho Group has appointed Parthasarathy Vankipuram Srinivas as an independent director. The appointment is in line with the company’s objective of strengthening its board and overall corporate governance within the CarDekho Group. The company is gearing up for its IPO (Initial...

MAM Marketing MAM
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/19/10.jpg?itok=9AguJaLs
Ki Mobility hands over media AOR to Madison Media Omega

The digital subsidiary of TVS Automobile Solutions Ki Mobility has appointed Madison World’s Madison Media Omega for its media AOR. The account was won in a multi-agency pitch.

MAM Media and Advertising Account
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/18/shweta-madhusudhan.jpg?itok=-8yq-x-V
Drip Capital appoints Shweta Madhusudhan as global head, talent development & compensation

Digital cross-border trade finance platform Drip Capital Inc. has announced that Shweta Madhusudan has joined its leadership team as global head, talent development and compensation. The platform provides financing solutions to small and medium businesses (SMBs),

MAM Media and Advertising People
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/18/khatabook-infi.jpg?itok=PoPnmwkS
Infidigit bags SEO Mandate for Khatabook

SEO company Infidigita has won the SEO mandate for Khatabook, a Bangalore-based SaaS FinTech company. The partnership aims to help Khatabook achieve its marketing objectives via organic channels.

MAM Media and Advertising Ad Campaigns
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/18/guleria.jpg?itok=qjZQ2okg
YS Guleria resigns from Honda Motorcycle and Scooter India

Industry veteran YS Guleria has resigned from the position of director, sales and marketing, Honda Motorcycle and Scooter India (HMSI).

MAM Marketing Brands
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/05/18/games24.jpg?itok=YeLbaD0t
First Partners wins communications mandate for Games24x7

First Partners has won the communications mandate for Games24x7. First Partners will be responsible for managing the brand reputation for Games24x7.

MAM Media and Advertising AD Agencies