Big restaurants including Domino’s Pizza are now offering consumers huge discounts and promotional offers of 15-20 percent through their own apps as compared to food delivery services like Zomato and Swiggy. according to a report of economic timesThis is being done “to compensate for the exorbitant commission and search optimization charges being charged by the aggregators and to reduce their dependence”.
Restaurants giving more discount than Swiggy, Zomato
One such example is Domino’s Pizza, which is now offering several “free rewards offers” on its app on weekends in 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.
Restaurants want to reduce their dependence on Zomato, Swiggy
Popular delivery partners Zomato and Swiggy charge a commission of 15-30 percent on each order, which is higher for restaurants than the commission charged by platforms like ThriveNow and Google-backed DotPe, which only cost 3-5 percent. charges. These platforms allow restaurants to set up their own digital services.
The report further states that by setting up their own apps and digital services, “orders from their own apps average between 10% and 25%, though smaller ones still rely heavily on large-scale aggregators”.
This is why big restaurants are leaning more towards their own apps. They plan to attract consumers with big discounts and promotional offers and reduce their dependence on such aggregators.
According to a statement by Anurag Katiyar, Chief Executive Officer, Indigo Hospitality, “It is imperative for restaurants to take back some control over their digital landscape rather than relying solely on aggregators. This will not only save them huge delivery costs but also give them access to more customer data; Aggregators have flourished on discounts, funded almost entirely by restaurants. ,
Swiggy was the first to appear on BGR India after restaurants increased discounts on their apps to reduce their reliance on Zomato.