Swiggy & Zomato have been the game changers ever since they entered the market. Online food delivery has not only become easier but also cheaper than actual dine out. You will find number of restaurant offers and payment offers while ordering through their respective apps. And the competition between these two companies has ultimately benefited the clients. We have more and more offers to choose from.
However benefiting these apps have been to their consumers, their food partners have been facing issues generating their desired revenue. Both these food aggregators have Dominos in there list of restaurants and the recent surge on the discount offers offered by these two apps are affecting its annual sale.
Same-store sales of Jubilant Foodworks Ltd., the operator of Domino’s in India, could slow down because of the competition, multiple brokerages including CLSA and Goldman Sachs said. That’s because they charge a fee for deliveries from restaurants, including Domino’s, and also offer more choices.
ICICI Securities in its report has pointed out that the aggressive discounting by food aggregators over the past few months continues to impact the dine-in industry and Jubilant Foodworks’ dine in growth in the top-10 cities”.
Jubilant Foodworks has stated that they will be discontinuing the use of third party manpower for delivery. They have also increased the salary payout to their delivery personals in order to retain them.
With more and more food delivery apps coming out in the market traditional dining out with friends and family has become a thing in the past. It, however becomes important for the food giants to understand that providing best service with quality food at a pocket friendly cost is what that is going to attract more customers.