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This survey was conducted on 640 restaurants of all types, big and small, in 28 cities of the country. For restaurants that use apps, their overall profits have increased, but their margins per order have decreased. Dependence on these apps had increased a lot during the Corona epidemic, which has now become stable.
Whether you want to have a party or suddenly feel like eating something at night, food delivery apps have now become such an option that whenever you feel like it, the food of your choice appears within a few minutes. Food delivery apps like Zomato and Swiggy have now become a part of our lifestyle. These apps may have made it easier for people to order food, but are these apps a profitable deal for restaurant owners? At least the restaurant owners don’t think so. If they wish, they can get rid of these apps today. This has been revealed in a recent study.
A new report by the National Council of Applied Economic Research (NCAER) has presented a shocking picture. According to the study, while these apps are bringing new customers to restaurants, on the other hand, huge commissions are eating into their profits.
1 in 3 restaurants want out of apps
About 35 percent of the restaurant owners included in this NCAER study said that if they had the option, they would like to leave these food delivery apps immediately. This means that every third restaurant is not happy with the way these platforms work. However, almost two-thirds (66%) of restaurants believe that they will remain on these apps because now it has become difficult to run the business without them.
Commission burden is continuously increasing
The biggest reason for the dissatisfaction of restaurants is ‘commission’. The report shows that in the year 2019, delivery apps used to charge an average commission of 9.6 percent, which has increased to 24.6 percent by 2023. This means that approximately one-fourth of the earnings of every order goes into the app’s account. Big restaurants have the bargaining power, but small outlets have to accept the terms and conditions of the app, due to which their earnings are greatly reduced.
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