The MAGIC of HOME DELIVERY
If I order 2 idlis with chutney and 1 masala dosa with sambar, from a nearby restaurant which is 1.5 km from home, the total bill comes to 177.3 rupees. Very normal darshini kind of a hotel. You can choose any aggregator like Swiggy or Zomato.
- Food – 110/-
- GST – 6.30
- Packing – 16/-
- Delivery – 45/-
Total – 177.30
This is the customer bill.
You pay 67.30 extra, or 38% of what you spend on this order is on Non-food services. 62% is for food.
So, the broad allocation is 62% for food, 5% to the government, 9% for packing and 25% for delivery.
Now, let us take a look at how the restaurant reconciliation happens, after 10 days of the transaction.
Amount paid to the restaurant = 70% of the order value. Zomato and Swiggy take 30% as sales commission.
Restaurant receives – 0.7 X 110 = 77/-
Amount paid to delivery partner = 15/-
Amount paid to government = 6.30
Amount that Zomato or Swiggy pockets = 79/-
Now, if you analyze percentages and look at how much each of them have benefited from the transaction, you will realize this.
Food – 43.4% and non food – 56.6%.
Restaurant share – 43.4%
Delivery partner share – 8.5%
Government – 3.5%
Zomato / Swiggy share – 44.6%
So, what actually happens when this is how the transaction actually looks like?
- Quality and quantity of food.
Your dine in experience is going to be much different as compared to food being ordered through a 3rd party.
- Highly inflated prices on aggregator portals.
As a restaurant, if I need to run discounts and still manage to keep riding the gravy train, I need to raise my prices by 150% at least. That only means that the aggregator makes more money and the customer pays for it.
- Food delivery in itself is not a sustainable practice with our inefficient solid waste management, use of plastic and the extremely affordable fuel prices.
Still hungry. Please reach for a chopping board and a frying pan and enjoy
Time to dig in.
delivery partners are making more money than restaurants…
Everyone should think and decide.