BRIM OVER YOUR TUMMY WITH ONE CLICK

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By Aiman Muskan, Kalindi College

Around a decade ago when we were kids ,we used to plan a dinner night in a restaurant every month with zeal and enthusiasm and now we are just a click away from ordering food from our favourite restaurants and getting it delivered at our doorsteps. What an evolution! Food delivery systems have made life so convenient for the busy and knackered urban Indians who would prefer ordering food to cooking at home. Affordable prices with a variety of choices, free home delivery, high discounts through promotional codes and many more exciting features add to the consumer utility while placing an online food order. The food delivery services are evolving and gaining popularity like never before. Nowadays, food delivery system has become a global market and its growth has tripled since a past few years. It has seen a considerable rise during covid 19 pandemic lockdowns when the restaurants were shut down but were delivering food through Swiggy ,Zomato ,food panda and other food delivery services. In the monotonous and boring routine of the lockdown, these food delivery services turned out to be saviors. It's amazing, how you can just think of your favorite food, order it online using food ordering apps, and then wait till it arrives at your doorstep.

The introduction of applications that are accessible and have highly technological networks have opened ready to eat food delivery as a major category. With this, consumers have benefitted and it has provided employment to many unemployed youth. Few years back , restaurants directly handled the food delivery system and provided door to door services without a mediator in between, but nowadays an entire network of players is involved.


Image Credits: Google Images


India, with so many food delivery startups has one of the most complex food delivery system with some active players like zomato, swiggy, food panda, uber eats and others have a good share in the market. Earlier the major cost incurred by any restaurant was divided into 3 segments : 1) food cost 2) labor or variable cost and fixed cost of restaurant, in that too they earned fancy profits. With food delivery system , delivery orders are acting as an extra table for the restaurant serviced by driver instead of a waiter. Drivers are paid a nominal charges for delivery and earn tips from customers too. This leads to a further increase in the revenue earned by the restaurant by expanding kitchens utilization at a sufficient margin.

During the early phase of pandemic, lockdown and social distancing gave food delivery system an enormous boost, it became a lifeline for declining restaurant industry, delivery system became palliative .Many restaurants were able to expand their revenue throughout 2020 while revenue generated from dine in facility declined. Food ordering apps made the lockdowns less onerous. Food industry experienced explosive growth during global pandemic.

As the evolution reaches its next level in the wake of global pandemic, new challenges and opportunities are emerging for restaurants, drivers & consumers. With spiraling price of petrol, delivery charges are also surging gradually. Commission rates are charged by restaurants ranging from 15 to 30% of price of meal + delivery charges + advertisement fee + tax.

Increasing market share and total sales through food delivery might act like a smart way to save restaurants from fixed cost, but some restaurants that focus more on increasing deliveries could dismantle their dining service and accord the quality of dining experience. The first quarter of 2021, with vaccinations spurring and many cities reopening their restaurants , saw a booming delivery business but in order to accommodate large amount of delivery orders restaurants need to introduce new processes and systems. Restaurants that prefer to continue both dine in and food delivery facility will need to adapt their pricing to fulfill additional cost of delivery.

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