Shun short term gains
Food tech may not work for restaurants
Food tech may not work for restaurants
Listing on food delivery platforms such as Swiggy and Zomato harms restaurants as it dilutes the brands. Food delivery businesses are losing money by loads.
Food delivery apps do not help restaurants. They offer food at a cheaper price than the restaurants list on their menus. They also charge a delivery fee from the customers and the restaurants. Food delivery apps are in the business of subsidising food. Restaurants imagine a future with more orders and higher prices. Customers imagine lower prices and more choices. It doesn’t work. However, owning your own food delivery works for the businesses.
Josh Barro writes in Intelligencer, “A restaurant-employed delivery person knows the menu and can tell quickly whether a bag appears to contain what is listed on a receipt. He has a rhythm with the staff he’s picking up from. He knows the neighborhood and knows the addresses of frequent customers. He has the right equipment — if he’s delivering pizza, he has an insulated bag so the pizza is hot when it gets to the customer. A third-party delivery person is more likely to screw these things up: slower, less accurate, lower-quality delivery.”
Businesses should focus on core such as owning the entire supply chain from making food to delivering food like Domino’s. It can be a mix of dark and cloud kitchens with a an out of the box software to manage orders.
Dig deeper: The Restaurant Times for more insights about restaurant business Link