It’s common for people to relish in the occasional fantasy about the future. However, it seems an increasing number of restaurateurs are now working towards a future without food aggregators and that is how Food Aggregators feed off your restaurant. While it’s debatable whether aggregators help restaurants acquire new customers, they certainly have altered consumer behavior to look for discounts and offers to an extent where they might think twice before ordering from their favorite restaurant if they don’t get a discount.
Restaurants have been accusing aggregators of resorting to heavy discounts, data masking, and charging uneven commissions for a few years now. Aggregators have had pushback in late 2019 with a “#logout” movement led by the National Restaurant Association of India (NRAI). Nowadays, when a consumer feels hungry they often spend a lot of time looking at the latest offers, comparing ratings, and analyzing delivery time before actually placing an order. This habit loop created by aggregators means restaurants might lose out on a potential sale if they don’t remain competitive with deep discounts.
This change in consumer behavior is used by aggregators to tighten their grip on a struggling F&B industry. For most restaurants still recovering from the aftermath of the pandemic, it’s very difficult to survive in the market, let alone compete with others. Aggregators use this to their advantage by charging extra to provide restaurants with higher visibility on their apps on a clickthrough rate basis. Restaurants didn’t anticipate how much consumer habits would change and how much they would have to accommodate aggregators and adjust to their whims.
For restaurants, it’s imperative to find a balance between loyal returning customers and gaining new customers who help them reach new heights. At times, aggregators lure restaurants with the promise of an extremely large potential user pool but fail to mention the huge costs associated with acquiring new customers and hidden charges for higher visibility, thus leaving businesses with no choice but to participate in a rigged competition while relying on their loyal customers to just survive. This parasitic nature of aggregators has left restaurants in a fix.
Loyal customers are the backbone of every successful business and restaurateurs feel both they and their customers are being taken advantage of by these aggregators. It is not unheard of where a local restaurant offers the same dish for cheaper if you order takeaway or delivery through them directly than if you use an aggregator. For customers who prefer a good deal rather than the illusion of one, and want to support their favorite eatery, this is a win-win.
It’s extremely important to understand how Food Aggregators feed off your restaurant and have an independent platform to at least offer loyal customers an alternative so they can support their favorite restaurant directly. YumzyX offers restaurants a comprehensive solution that helps them become self-reliant and not be dependent on aggregators and retain their customers. to understand how you can evolve your business into brand, visit our blog https://blog.yumzyx.com/evolve-your-business-into-a-brand/
From easy-to-use dashboards for orders to efficient integration with the delivery marketplace. These key components of your independent platform help you retain data about your customers and gain insight into their behavior so you are not blindsided by a shift in consumer demands. YumzyX helps elevate your brand and connect with your customers to reinvigorate that personal touch that an aggregator may not have.
Fighting these aggregators might seem like an uphill battle but unlike Sisyphus, you have a whole team to help you out.
Reach out to us to know more.