HomeOpinion & ReportingRestaurants on Swiggy, Zomato are charging 10% more than in-store pricing: Report

Restaurants on Swiggy, Zomato are charging 10% more than in-store pricing: Report


Restaurants in Delhi-NCR grapple as heatwave takes toll: Foot traffic plummets, businesses suffer up...

As the blazing sun sends temperatures soaring past 40 degrees Celsius, the merciless grip of summer becomes even more apparent, making the idea of...
Casa Dona

CYK Hospitalities brings authentic Mexican flavors to Gurugram with the launch of Casa Dona

CYK Hospitalities, a leading end-to-end F&B consultancy, has facilitated the launch of Casa Dona, a Mexican quick-service restaurant, in DLF Cyber Park, Gurugram. This...

Restaurants listed on meal delivery services like Zomato and Swiggy have started to charge customers on average about 10% more than the pricing stated on their menus in-store.

According to a Jefferies research cited by Mint, the restaurants are accusing the higher commissions and promotional fees for the price increase.

According to the report, food tech giants Zomato and Swiggy had to increase take-out prices as a result of a stronger focus on profitability. In the end, it prompted restaurants to charge differently, yet packaging and delivery fees are still excessive.

The brokerage firm questioned 80 restaurants in the top eight cities for the survey, which resulted in the report. It used a method of price comparison between online and offline prices.

It generated 240 orders, each costing between INR 120 and INR 2,800. A variety of quick-service restaurants (QSRs), full-service cafes, and ice cream shops were also chosen.

When compared to the printed menu price for dine-in, 80% of the establishments in the survey had higher menu pricing on meal delivery platforms.

“More than half of these restaurants charge a premium that is less than 10%, with the median at 10-11%. However, nearly 20% of them charge a premium that is in excess of 30% to the printed (online) menu pricing; we also saw a few instances of premium being over 40% (highest at over 60%),” the report said.

It should be noted that this price technique did not apply to all items on the menu; rather, it was only used for a few. Even some of the bigger restaurants are debating whether new items may be offered to allow for differential pricing through aggregators.

However, certain establishments, like ice cream parlours, charge less for their goods than restaurants do.

Customer discontent may result from these pricing increases. Additionally, it may open up new potential for hyper-local delivery services to permit restaurants’ deliveries. This appears to be a remote prospect at the moment, the report stated, considering the strong brand recall of Zomato and Swiggy.

Because the same foods are priced differently online and offline, Zomato has previously been accused of unfair business tactics. It declared at the time that it did not influence such price variations.

India’s industry for meal delivery has expanded rapidly in recent years. According to a survey, between 2022 and 2027, the Indian online food delivery industry is anticipated to expand at a compound annual growth rate (CAGR) of 28.9%.

Latest articles

101 reasons you love your father, here are 10 ways to let him know

This Father’s Day, let's celebrate these remarkable men with gifts that go beyond the...

Treasure Wine Estates and Snoop Dogg team up to launch RTD cocktail range

Treasure Wine Estates' 19 Crimes label has partnered with American rapper Snoop Dogg to...

India’s palm oil imports reach four-month high in May, up 11.6% month-on-month

India's palm oil imports rose 11.6% in May from the previous month to a...

D2C brand Osh expands presence to Mumbai, Delhi, and Hyderabad, anticipates 5X growth in sales

Osh, a leading D2C brand known for its environmentally conscious products, has expanded its...

Related Articles

Zomato takes delivery partner support to new heights with South India’s first resting point in Bengaluru

Zomato, the popular food delivery aggregator, has recently established a new resting point for...

Indian Restaurant Association takes on Zomato and Swiggy with launch of Waayu, a zero-commission food delivery app

The Indian Hotel and Restaurant Association recently launched an app called 'Waayu' that aims...

Rapid growth of Zomato and Swiggy to dent QSR sales: BNP Paribas Report

The swift growth and increasing popularity of foodtech giants Zomato and Swiggy are expected...
× Drop a, Hi?