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How To Escape From Food Aggregator Commissions And Penalties

How To Escape From Food Aggregator Commissions And Penalties?

A lot of buzzes is going around the way online food aggregators are operating these days. Dozens of restaurants in different parts of India are complaining about how the deep discount model and high commissions are demolishing their restaurant businesses. One cannot doubt the fact that the progression of online food aggregators has led to a massive increase in the number of orders that restaurants are receiving these days. But we cannot overlook the fact that the profit margin of restaurants is going down drastically. Running a restaurant business on a single-digit profit margin does not sound feasible at all. So, is there any way to overcome this situation? Can the restaurants find a platform where they are not forced to pay high commissions and penalties? What the future holds for the restaurant owners? Let’s find out more in this regard.

Avoid High Commissions By Creating Your Own Ordering Platform

For generating orders, if you depend completely on online food aggregators that charge a high commission, you need to re-work on your business strategy. You should think about developing your very own food ordering platform where your customers can buy food from. This way, you will not have to burn cash in the form of high commissions. You can work at your own pace and process the orders without worrying about the penalties. Penalizing a restaurant for a delay of just two minutes in accepting the order sounds so unfair. No doubt, customer satisfaction is important, and the penalties are aimed at making it better. But, online food aggregators should also offer some flexibility to their partner restaurants. Designing and developing an app these days is not a tough nut to crack anymore. You can get your requirements outsourced to any reputed and experienced app development company. Once you have an app for your restaurant business, you can promote it through different marketing channels. While it may take some time for you to attract customers towards your restaurant’s app, but the outcome, in the long run, can be quite fruitful. All you have to do is a tie-up with a logistic company and get your orders rolling.

Work on Your Own Delivery Fleet

Another way to stay away from high commissions and penalties is to have an in-house logistic channel. Most of the online food aggregators these days have a strict set of policies related to the timely processing of orders. If you delay things and the delivery guy is at your restaurant to pick up the order, it may invite some penalties. But when you own the delivery channel then you find yourself in a commanding position. You don’t have to succumb to the pressure food aggregators place on their partner restaurants. Rather than depending entirely on the aggregator for the delivery of orders, you can place yourself in a better position.

Improve Your Restaurant’s Business Operations

Sometimes our own mistakes cost us a lot. Improved business operations can help us avoid penalties in many ways. So, how to improve one’s restaurant business operations? Well, this is where you can make use of technologically advanced tools and techniques. To make your restaurant more efficient for its workforce, you can empower it with a restaurant management system. In every restaurant, there are three main sections- the dining area, the billing area, and the kitchen area. All these three areas need to be in proper sync. If they are not connected properly through a smooth channel of communication, it can lead to confusion and chaos. So, empower your restaurant with a dependable and technologically rich restaurant management system. It will get easier for your staff members to work more efficiently.

Join a Platform That Charges Low Commission

Not all food aggregators in this online business charge high commission and penalties. Some of them are trying to address the major problems that today’s restaurant owners are facing. When you join such a platform, you may not get too many orders; but you don’t have to pay high commissions either. It is better to have an average number of orders by paying a lower commission and getting a thicker profit margin in return. When you work on too many orders and earn too little, it makes you feel unhappy. So, get information about a few online food aggregators that do not charge an unusually high commission from their partner restaurants.

The Solution Lies in Empowering Your Restaurant Business

So, those are some of the methods you can follow to keep high commissions and penalties at bay. The key aspect here is to empower your business by relying less on online food aggregators. As more restaurants are raising their voice against the unfair policies of some online food aggregators, we are sure that the business environment will become more favorable for the restaurant business owners.

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