HomeManagementIn-House Restaurant Delivery v/s Food Aggregators: Which Is Better?

In-House Restaurant Delivery v/s Food Aggregators: Which Is Better?

When you want to order food from a restaurant, what do you do? Use Zomato, Swiggy, or the restaurant delivery app? Before the introduction of online food aggregators, when people wanted to order food delivery, they just called the restaurant. Now, it isn’t easy to imagine a world of online ordering without these apps.

In a world with an increasing number of customers ordering food online, restaurateurs are constantly struggling to finalize the online delivery model that works for them. The food aggregators offer easy publicity and access to customers, while your app or website lets you keep all of your profits to yourself. 

Not sure which route is better for you? Don’t worry; we are here to help you! This blog covers the advantages and disadvantages of both models.

Restaurant food packaged for home delivery.
The quantity of food orders received by restaurants has tripled over the past five years, while there has been a 14.5% year-on-year growth in the number of new people who order food online.

Food Delivery By Aggregators

Food Aggregators are dominating the market share in online food delivery. Customers place an order on these platforms and forward you the order. As more and more restaurants are opening up, the size of these aggregators is expanding even further. New restaurants register themselves with food aggregators to get easy access to customers. 


The registration process with these apps doesn’t take much time if you have all the required documents ready. You can find out more about it in our blog, “Food Delivery War: Which is better, Swiggy or Zomato?”.

Advantages

  • Easy Entry Into the Market: When you integrate your online delivery services with third-party aggregators like Zomato and Swiggy, they give you easy access to an existing customer base. You become visible to all the customers who use these apps to order restaurant delivery. You simply need to follow the registration process instead of investing the time and labour required in building your website/app. 
  • Direct Visibility: As the food aggregators have access to a large customer base, you directly get visibility into that market by integrating with them. You can also invest in running pay-per-click ads on these platforms and area-based marketing. These platforms can give you access to a massive customer base if used well. In contrast, your restaurant delivery fleet will take a long time to develop a loyal customer base. 
  • Organized Delivery: Food aggregators already have an organized delivery service with user-friendly platforms and delivery agents. Using them saves you the time and labour of setting up one of your own and managing it.

Disadvantages

  • Reduced Profits & Higher Commissions: Nothing satisfactory comes cheap! Same way, food aggregators charge heavily for the benefits they provide. Swiggy and Zomato charge around 18-25% commission of the total order value. 
  • Lack of Customer Data: When customers order food online through the food aggregators, these platforms preserve all the searches and order history data. The restaurants lose the opportunity to access and use this data in enhancing their marketing efforts and services. 
  • Customer Experience: A considerable chunk of shaping a restaurant delivery experience for a customer is the time it takes for the food to be delivered and the quality of the food when it reaches the customer’s doorstep. Any mistake on their part can affect the impression your brand makes on the customers.
Guide to learn the different advantages & disadvantages of restaurant delivery
Keeping the online ordering process entirely in-house, however, would mean that you have to manage the website, payments, and deliveries, all on your own, making you entirely responsible for the customer experience.

Restaurant’s Own Delivery Fleet

To set up your restaurant delivery fleet, you can design a website or app that takes customers’ online orders. Your website allows you to take orders directly from customers as they come, keeping the process entirely in-house.

Advantages

  • Customer Experience: Unlike integrating with food aggregators, running your website gives you complete control over the customer experience. You will directly contact the customers, managing their requests and complaints. You control the customer experience and access the entire customer data required to improve your services and marketing. 
  • Exclusive Choice: Customers spend hours online browsing through multiple restaurants on Zomato and Swiggy to decide which one they want to order their food delivered to. On the other hand, when they use your website, you are their only choice. Take the example of McDonald’s and Dominos, whose delivery apps are popular amongst the masses. 
  • Long-Term Benefits: Food aggregators charge heavy commissions for their services. When you have your fleet, you save on substantial long-term costs and keep 100% of the profits. Not only savings, but you also get to benefit from customer data you get from your apps.

Disadvantages

  • Costs and Investment: In the case of food aggregators, you only need to register yourself with them, while for your website, you need to put in a hefty cost, time and labour investment. Building your delivery fleet is capital intensive and is not viable for small restaurants and cloud kitchens. 
  • Responsibility & Accountability: With your delivery platform, you are responsible and accountable for the entire customer experience. You and you alone need to ensure a smooth app experience, resolve consumer complaints, and timely and proper deliveries. 

Given the above advantages and disadvantages of both the options, it is ultimately the restaurant’s call to decide how they want to carry out their food deliveries. We hope this blog helps you make that decision!

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Your restaurant website for managing food delivery may sound overwhelming. But worry not, Petpooja’s POS is there for you! With the help of this POS, you can smoothly toggle on and off-menu items when ingredients are unavailable, effortlessly update your menu, and even seamlessly integrate with all the major online order aggregators!

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Abeera Dubey
Abeera Dubey
Abeera is a freelance content writer at Petpooja.

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