CNBC-TV18 Special Podcast24 Touko 2021

22: CNBCTV-18 Special Podcast | Why are restaurants urging customers to skip Zomato, Swiggy and order directly?

When you order food from your favorite restaurant on an app like Zomato or Swiggy, the restaurant could actually end up losing money, instead of profiting from your order.

While this may be a revelation for many, the Indian restaurant community is having a moment. It is working hard to reach customers directly, and urging them to place orders with the restaurants themselves, instead of doing so on a food aggregator platform.

This D2C or direct-to-customer push comes at a time when food deliveries are the only form of revenue for restaurants.

"A restaurant ends up paying up to 40% of their top line just on aggregator platforms", Riyaaz Amlani, MD & CEO of Impresario Handmade Restaurants and former president of the National Restaurants' Association of India (NRAI) tells Alisha Sachdev in a CNBC-TV18 Special Podcast.

"This includes commissions, discounts that we are forced to offer, discovery and marketing charges and fee", he continues.

"We are not against aggregators, we are against the tyranny of aggregators."

Amlani, who helms popular brands such as SOCIAL, Saltwater Cafe & Smoke House Deli, says that while food aggregators have afforded the restaurant industry to grow, that has come at the cost of the profitability of the individual restaurant.

Listen to the podcast to know more about what restaurants are doing to get rid of their dependence on food aggregators, their appeal to customers, and how restaurants are taking this moment to leap ahead with technology and initiatives focused on making food deliveries a personalized experience for customers, and a profitable one for restaurants.

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