Are you aware of how the actual working of food delivery services and apps can bring down your profit margin and food business? They take away huge commissions from restaurants and squeezes their razor thin profit margin.

1. Impact of Food Delivery Services on
Small Scale Restaurants and Food
Business
In modern times, every restaurant owner prefers to have an online food delivery
service due to the rising trends. About ​60% of US citizens​ order delivery at least
once a week.
Especially in the post-COVID-19 world, there has been a​ 169% increase in
restaurants​ using online ordering and food delivery services.
However, are you aware of how the actual working of food delivery services
and apps can bring down your profit margin and food business?
It’s undeniable how these services have helped restaurant owners to bring about
revolutionary changes in their services. Yet, there are some solid adverse facts
nobody talks about.

2. This article will talk about the sordid, non-profitable side of these food delivery
services.
Extra Commissions!
Let’s begin with the most obvious fact of these food-delivery apps. According
to ​Techcrunch​ statistics, UberEats and other delivery services take about ​30%
of your total profit​. It is not just applicable to expensive dishes but even
inexpensive ones.
The commission or delivery rates also keep fluctuating.
● According to the ​Economic Times​ of India, Swiggy, India’s food delivery
service increased its rates from ​12-18%​ to ​18-23%​. Thus, you cannot
rely on these services.
● Nearly ​82% of the restaurant owners​ believe that the commissions are
way too high and unfair, and​ 33%​ of them think that it’s not worth
paying so much, as per ​HospitalityTech​.
Now, this can bring down your profit margins, especially in times of economic
slowdown.
No Customer Relations
On the one hand, you’re losing out your money to commissions, and on the
other, you are also losing out on customer relations.​ Upserve​ says about​ 43% of
restaurant owners in the UK​ believe that using food delivery apps interfere
with the customer’s connections with the restaurant.
You might wonder that if customers prefer these services, why not go for them?
However, ​the lesser-known fact​ is that about ​78% of consumers​ prefer
ordering food directly from the restaurant’s app or website rather than a food
delivery app.
Your customers want the money to reach your restaurant itself rather than
third-party food delivery services.

3. Big blunders by food delivery services!
How can we forget the big ​Zomato blunder​ of India that stormed the social
media with a delivery guy eating out of a customer’s parcel? Such incidents can
create a bad image of food delivery services. This can, in turn, can harm your
investment as customers are more likely to choose another platform for placing
orders.
Zomato has about ​100,000 listings​ all over India. Now, this may sound
grappling, but in reality, the restaurants have to face a lot of competition,
especially the ones located in big cities.
Did you know that ​Swiggy’s commission​ rates also differ according to the
region? This can cause a significant loss to restaurants situated in metropolitan
cities. This is an alarming situation for all restaurant owners!
What is a better alternative then?
Now there are many Zomato/Swiggy alternatives or Ubereats alternatives to
building your in-house ordering facility. Let’s not deny the initial set-up cost of
your application or website. ​Appinventiv says this can cost about 60,000$​ or
more, which a lot of restaurant owners cannot afford.
Restaurant business post-pandemic saw a significant increase in online food
deliveries by​ 300 times​. This is because of the following reasons:
● To ensure social distancing
● Contactless deliveries and orders
● Digital payment
● Strict lockdown rules in certain regions
● Hygiene and safety
Thus, at present, it is necessary to have your food delivery service.

4. Now, what if you can get your customized branded mobile website for online
food ordering? This can decrease all the extra costs that are eating away your
restaurant’s profits. We can help you in setting up your ordering facility without
any additional charges at​ Grubly.
Grubly can help you​ build and customize your website​, make online ordering
and payments easy, and it takes no commission, and many other benefits, which
you can see ​here​.
All you needed was this information to have a kick-start for your in-house
ordering services!
After all, in this capitalist world, you do not have to give in to the marketing
gimmicks if you have all the right information.