PNN
New Delhi [India], June 16: Prior to the COVID-19 pandemic, India's restaurant industry was an emerging industry in India's informal and formal economy. It had a value of ₹4.2 trillion as of 2019 (per the National Restaurant Association of India), from large chains to tiny family restaurants. In-house consumption accounted for the majority of revenues, with a very small percentage being earned through online ordering platforms. While third-party aggregators were building momentum, restaurants still had price, customer relations, and branding control.
The pandemic hastened a digital transition. With dining out prohibited, food delivery turned into a need, and restaurants had to expand their business using digital aggregators to survive.
Challenges - Margin Pressure, Platform Dependency, and Data Gaps
This shift, though ultimately positive, came along with a series of structural problems, particularly for small and medium-sized enterprises. The delivery sites charge commissions between 20% and 35% on each order. Because average margins within the business lean under 10%, these commissions imposed severe fiscal burdens. While digital platforms offered access to consumers, they introduced structural constraints, especially for small and mid-sized restaurants.
* Commission Financial Burden - Delivery platforms normally take 20-35% commission per order. Margins in the industry are less than 10%, and such commissions are not sustainable.
Effect - For most small restaurants, these charges made them suffer losses or quality and personnel compromises.
* Platform Dominance and Visibility Problems - Platforms decide user experience, right from menus to search results. Restaurants may not necessarily get a share of customers' data like order history, preferences, or reviews. Visibility is linked to paid ads or algorithms to the benefit of bigger or richer companies.
Effect - Smaller stores cannot compete and cannot establish direct connections with shoppers.
* Brand Dilution - Because the platform is central in the purchasing process, the restaurant brand becomes diluted. Shoppers can end up keeping the platform rather than the restaurant itself.
Effect - Long-term shopper loyalty is redirected towards the aggregator rather than the restaurant.
Waayu - An Alternate Model with Emphasis on Control and Transparency
Waayu here was a platform providing restaurants with an alternative business model.
* Zero Commission - Crucially, it does so without taking commission on orders and instead employing alternative revenue models. This means that restaurants keep more of their revenues and spend on operations, employees, or ingredients.
* Direct Access to Customer Data - A distinctive aspect of Waayu is that it emphasizes openness to data. Restaurants get direct access to customer behavior and order history and can create their own customer engagement strategies. In contrast to the usual aggregator models, this configuration provides a more direct link between customers and businesses.
* Tools for Independent Digital Presence - Waayu also offers tools that enable restaurants to host their own online presence via standalone ordering pages or branded portals. The platform can assist businesses in enhancing brand visibility and curbing long-term dependency on third-party discovery channels.
Process: Onboarding and Technical Support
One of the factors that are driving adoption is ease of onboarding. The platform is such that it can support restaurants that have differing levels of digital maturity:
* User-Friendly Interface - Simple functionality like digital menus, digital payment, and tracking of orders are presented in such a way as not to necessitate high-level technical knowledge.
* Custom Delivery Options - Waayu also provides ease of operations, restaurants can have their own delivery networks or third-party logistics firms, depending upon availability in areas and price.
* Support Infrastructure - The process of onboarding involves setup, technical support, and training employees, which facilitates the process for businesses that have never been present in online environments before.
India's food service industry is still growing, with digital media still playing an important role in consumerism post-pandemic. Issues brought about by commission-based platforms and limited access to data are now being addressed as part of the larger discussion on platform fairness and economic viability for small businesses. Models such as Waayu's presage a turn toward alternative digital infrastructures, ones that seek to realign control and revenue in the direction of local establishments. Not a magic bullet, certainly, these models give restaurant owners greater control over their business, data, and customer experience.
With a mature market, the promise of having many different platforms, each with some specific trade-off, can translate to a diversified, more stable restaurant industry. Long-term fate will hinge on how these models can scale, the way they catch on with various segments and geography, and whether they can adapt to the changing demands of restaurateurs as well as customers.
For more information, please visit: https://waayu.app/
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