Before third-party food delivery apps were the norm for anyone ordering food online, many restaurants were amongst the few early adopters of online food delivery through their websites. With heavy commissions paired with expensive marketing, brands are asking their customers to switch back to ordering directly from them in hopes of keeping their stores open in the aftermath of COVID-19. Restaurateurs who see their margins shrink on orders received through third-party apps agree that while they are grateful for the new customers they can access through the apps, the relationship is based on dependency.
Restaurants having multiple outlets throughout the country are the ones driving the push towards ordering directly from their websites or dedicated applications. The whole ordeal can be expensive for restaurants lacking the right tools to encourage direct ordering. Earlier, restaurants had to hire a team of developers to build and maintain their websites and applications, which came at a huge cost. These days, restaurants should rather outsource the painstaking tasks of website and application development at a fraction of the cost so that they can focus on the day-to-day operations. More than a website, restaurants need POS integrations, customer support, data analytics, and CRM tools to segment their customers while re-engaging them using email marketing or push notifications. The fear of losing out on revenue that could be pivotal in the survival of their restaurants requires the switch to an independent platform even quicker. While most restaurants have been using several different software solutions for their operations, they need a comprehensive solution to cover all their needs.
In India, recently, the #orderdirect campaign started by NRAI has been picking up steam. They are encouraging restaurants and their patrons to place orders directly. Behind the scenes, companies like Dotpe, Thrive, and YumzyX has been driving the industry's change by making restaurants aware of the benefits of their own ordering platform. Hyderabad-based SaaS platform YumzyX has been taking strides in providing all hyperlocal businesses with the one-stop solution they need to serve their customers better. Akash Shah, the CTO and co-founder of YumzyX, said, "We aim to empower all types of businesses with the right technology to help them succeed."
YumzyX is betting heavily on helping with the recovery of the food business driven by the ordering trends of customers. Akash believes that if businesses provide a better value proposition to the customers, they will order directly from the brands they want to support. While they aim to empower small and medium businesses as well, they have paid close attention to how their platform will empower F&B enterprises with multiple outlets. Suresh Redyam, the CEO of YumzyX, feels that the current F&B market is facing an imminent collapse due to the pandemic. He has been a pioneer in developing software technologies with Seamless North America LLC and Menupages.com in the United States to optimize restaurant operations and wanted to make a new product that would decrease the dependence of restaurants on food aggregators. After witnessing the disruption in the F&B industry from COVID-19, they felt this technology could benefit the entire F&B sector. That was an important factor behind their nominal pricing to decrease further burden upon restaurants.
Small and medium restaurants which have been impacted most severely by the pandemic have found a lifeline through the software developed by YumzyX. Over the last four years, YumzyX has worked with 6800+ restaurants, not just limited to an online ordering website; the platform has provided each restaurant with access to their restaurant's customer trend data protected with enterprise-grade security. One of the major complaints partner restaurants had with third-party food aggregators was the data masking and limited access to their customers' direct feedback. The value of data such as customers' names and ordering information has increased exponentially when restaurants have to rely on their loyal customers to brace for the decreased business caused by lockdowns. Slowly as restaurants return to normalcy, the impact of direct ordering will have huge implications on their road to profitability.