Food delivery apps are being too expensive for restaurants as well as people. They add extra charges to the food that’s why restaurants bear too many extra expenses on their profit. It simply means the food delivery apps are converting their profit into a loss.
This is making online food ordering difficult (& unaffordable) for many people. The profit percentage of the restaurants is going down because of so many additional charges imposed by food delivery apps.
These apps are directly affecting the cost of food, which is not good for both (consumers and restaurants). We will have to understand how to stop these extra costs. So, we are here to provide you with the best solutions for this problem.
It’s our responsibility to be aware of all the things that are not good for the pocket of a common man because Your Money is Your Money None of Anyone else’s Money. Save your money by adapting some cost-effective ideas which are mentioned in this article.
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How food delivery apps are affecting restaurants?
According to online surveys, food delivery companies are eating restaurants’ profit. Because of too many commissions and hidden charges, businesses are not able to make the sufficient profit that should earn them.
In the beginning, these companies make the restaurants feel excited by introducing & promising many lucrative ideas and make the deal by saying that they will take your business to another level, but this is only a strategy to get restaurants registered with them.
They begin by saying that your orders will get double and show so many schemes & offers, but the reality is something else, that is not good for the restaurants.
In the beginning, it sounds good, but it does not take long for the restaurants to understand that these food delivery apps are eating their profit via hidden charges. Many restaurant owners agree that the profit percentage of food delivery apps is increasing along with the extra costs.
Commissions and hidden charges
Food delivery apps charge 20% to 30% commission on each order from the businesses. It is almost equal to the actual value of the meal.
Let’s say, the cost of an order is ₹100, out of which, the production cost of food is ₹30 and food companies’ take ₹30, then the sum will be ₹60, and the remaining amount is ₹40 which comprises the other expenses of the restaurants like staff, electricity, and all other charges.
So according to the above calculation, profit will be almost equal to nothing. So, this is why it is the main concern of the restaurant owners.
Forcefully offered many schemes
Food Delivery companies are implementing schemes & offers on daily basis to attract customers to order, which is not beneficial for the restaurants and causes the loss in profit.
How to solve this problem
You can solve this problem on your own. Here are some valuable points which will be very effective for your profit percentage and help to grow your restaurant with a better strategy.
Set the delivery framework according to profit
Restaurant owners can get rid of this trouble of commissions and extra charges which is affecting the profit percentages of the restaurants.
Firstly, you can start your delivery services and set the parameters on your own according to the profit percentage. It will be beneficial for you in two ways, first in profit and second for brand awareness.
on a second note, you can brand your restaurant like other companies. When you will deliver the meal to the customers with your branding on the packaging & the costume of delivery boy. Just imagine what impression that could make on your customer’s mind.
More people will get to know about your restaurant. There will be no need to pay food delivery companies for the delivery services.
Restaurants can share their link with their existing customers on WhatsApp to get online orders. It will be easy for the restaurants as well as customers to communicate with each other and will be beneficial for the restaurant’s financial health.
There is no need for any food delivery apps to get your orders. You can use WhatsApp Business App to share your links.
In WhatsApp, you can also share exciting offers and product details to your customers, attracting them to order the food and you can also set these offers according to your profit percentages so you can make a good amount of profit with the satisfaction of the consumer.
How ordering food at home affected the physical & mental health of people
ordering food at home has affected people’s health very badly on both mentals as well as physical levels. So many people are not even aware of this.
we have mentioned below some tips about how to get rid of this comfort zone which can be actually an uncomfortable loss for your health.
- During the lockdown, many people have been exhausted by ordering and eating food at home because they were scared to visit the restaurant because of the COVID-19. This caused depression and stress in the minds of people. During COVID-19, people were feeling depressed about staying locked up in their homes.
- So, it will be good for them to have their food at the restaurant because of the change of atmosphere, talking with people, and sharing their thoughts with others, which helps to lessen the stress and makes you happy.
- When you order the food at home, you don’t know whether it is prepared by following the hygiene or not? sometimes because of late delivery, your mood gets off and you eat your meal in a bad mood which is also not good for your health. Instead, if you go to the restaurants for Dine-In, you will get a fresh meal in a minimum time.
- It is difficult to believe in a stranger who is delivering your food because you are ordering your food from a third-party food delivery app, not directly from the restaurants.
- Do you know food delivery apps take extra charges as compared to the restaurants? On each order, companies charge 20% to 30% service tax that’s why we end up paying the extra cost for our meal, which we can have at the lesser price at the restaurants.
- People are being lazy and unhealthy because of sitting at one place all the time and eating the food only at home. But the pros, To dine-in at the restaurant you will have to go to the restaurant from your home which will help to keep active your body & also help to digest your meal nicely as compare to eat at home.
- You can enjoy your favourite dishes in real-time as choose from the menu according to your favourite meal and also no need to wait for too long as compared to the online food ordering apps.
- Packaging may be harmful for your health because the food is packed in plastic bags which are not good for your health. At the restaurant, food is served directly on the table just after preparing so it is quite better for your health.
The extra cost is a very big issue for the restaurants that’s why they are facing such a huge loss in the profit, by using the food delivery company services. But not anymore because restaurant owners are getting much aware of these extra costs, imposed by food delivery apps.
Not only restaurants are affected by this extra cost but also consumers are affected too. By showing some schemes & offers food delivery apps are receiving extra amounts of food from the consumers.
So, We have decided to be aware of the restaurants with the help of this article. The points mentioned in this article will be very helpful for the restaurants to save their profit from the food delivery apps’ fake promises & extra expenses.