Don’t let the aggregators rule you!
#LetsWorkTogether
So, the digital white knights who came under the guise of rescuing the industry, revealed themselves to be extractive and predatory.
Perhaps their very survival forced them into that position, In retrospect, even though it looks insidious and premeditated, I do not believe that the intent was such when they started, Sure they believed that they would do good, and work the industry and help them use their excess capacity, and fulfill a need in the economy and community.
Slowly restaurants dismantled their delivery force/teams and went to Zomato, Swiggy and UberEats, and then it seemed the perfect solution, cost being lower and it was — today the cost has increased, the data is no longer theirs, they have lost touch with their own customers, and are chaffing at the bit.
-Vinodh Sharma, Co-Founder CoEats.org
Currently, restaurants have had enough trouble from aggregators — Not because aggregators are profiting off them, but due to a lack of their own profits. Online aggregators are charging close to 30% per order in commissions. Adding to this problem now COVID hit and most restaurants are now sinking — “This has now become a matter of survival”
Yet, the Restaurant Industry is ultimately responsible for the situation it finds itself in, and we will tell you why;
The Industry has been on the sidelines of the digital revolution for way too long. There are a few exceptions, A few restaurateurs saw the opportunity and the danger and did take charge.
But there weren’t any organised efforts on adoption that was called for, there was no unit level education — Each individual restaurant was left to their devices to adopt — Some did, and most didn’t and life went on …
The time has come for Restaurateurs to take charge of their destiny and a blue print has to be laid out for their coming out as a significant force.
How can we fight this situation together ?
The Indian food service industry is one of the 3 largest service sectors in India, along with retail & insurance. It is 20 times the size of the film industry, Almost 5 times that of Hotels and almost one and a half times that of the Pharma sector. The ORGANISED Restaurant industry contributes, close to 20, 000 crores in taxes last year, [only the organised sector ] to the government of India.
Yet, does the industry have, and does it exercise the clout commensurate with reality? Not at all…
First, we have to start building associations organised on a local level in each area, The method and intent of local associations shouldn’t be limited to name collection, but they should actively promote digitization and build physical representation in each location.
Local associations should first educate their members on how to setup digital ordering and data management for their own restaurants and then educate customers, about how ordering from them directly is important for the betterment of communities they live in.
Some restaurant groups across the country are asking their loyal customers to order directly from them already, It starts with a few simple steps — posting on their websites and social media, emailing customers to promote their innovative dishes etc
Restaurants can build it from there, not in one day, but by growing out each component week by week. Encouraging the customers to order directly via WhatsApp or phone, adding a little more digital marketing to promote on actively on Instagram and Facebook, building your ordering link that stores customer contact info etc can be a few starting steps.
For delivery, you can look at hiring 1–2 delivery boys on your own or together along with group of restaurants in your locality. Today there are also 3rd party delivery providers as Rapido and Dunzo who are full filling orders at Per KM pricing of Rs.8 and Rs.10 respectively.
All these are costs, but when those costs add up, you’ll see what restaurants are seeing all across the country: profit margins can be healthy, customers are loyal, off-premise dining [if it does become the new normal] this relationship with your customers will always be yours— not some faceless organisation which reduces the life and works of people to be justified and executed by some algorithm.
“CoEats collective” is creating technology and protocols to benefit the long term future of F&B industry while also ensuring short term sustainability.
CoEats.org is the home to our activism and free to use software. Our agenda is to build a digital democracy for the restaurant industry.
Kindly signup with CoEats to access our freeware— Because we are here to help you be #TheDigitalRestauranter
