The Top Four Drawbacks of Online Food Aggregators. Why Are Restaurants

Finding It Hard

There is a rise in online meal delivery services. The way people interact with foods and restaurants and vice versa has transformed. Nevertheless, the newfound changes have also ushered in some unforeseen challenges. This is for restaurants, which might be difficult to overcome.

1. Conspicuous and Increasing Commission Rates

Several of India's major online delivery aggregators have recently been criticized. It is for dramatically raising their commission fees. For example, a restaurant has to pay as high as 20 to 25 percent of its revenue to food aggregators. It is a commission for the services availed from them. Restaurant owners have highly criticized such an increase. They proclaim that the increase in rates is impeding their business operations.

There was a rising commission rate from food aggregators. However, on the contrary, food aggregators are justifying the increase in commission rates. They claimed it was a 'necessary evil' to cover their expenses. As a result, restaurants are compelled to raise the prices of their online menus. This was adversely affecting the end customers' order choices.

2. Delivery Deterrants

The number of complaints has been piling up. It is from customers regarding delivery issues from online food aggregators. The proportion of complaints about late or missing deliveries. The substandard quality of meals has become commonplace in India. Thus, the general consumer is left frustrated and angered. A recent survey has revealed that 2 out of 5 consumers are unhappy. They were not happy with the way food aggregators handled grievance redressal. It is regarding the subpar quality of food. Similarly, 39 percent of consumers also have an opinion. They state that food aggregator apps are unwilling to offer refunds. They don't even offer replacements in case of substandard food quality. Overall, customer unhappiness has an adverse effect on the aggregators. It reflects poorly on the restaurant. The culmination is that restaurants might find it difficult to shrug off such a ‘bad rep’ and move ahead.

3. Unstable Order Prices

There is another issue that restaurants are finding difficult to overcome. It is about erratic order prices. The online meal delivery domain of India is in an inconsistent. Wherein the prices fluctuate continually. Therefore, consumers cannot gauge how much they should pay for their food. As per a recent survey, 70 percent of consumers consider ‘high fees and surcharges.’

They are among the top concerns with food aggregator apps. Thus, the outcome is an air of distrust and confusion from the consumers’ end.

4. Customer Transparency

There is a major issue that restaurants are facing. It is while collaborating with online food delivery services is accessing customer data. Customers research for and order from restaurants directly on food aggregator sites. All the customer data remains with them, obscured from restaurants. Hence, in other words, restaurants do not have access to order-related information. They cannot co-opt it to their advantage.

The ‘masked data’ phenomenon has created a void. Restaurants are unable to gauge who their most loyal cohort is. They can't find who has left a negative review. Due to no customer data access, restaurateurs are confused about customer preferences. This is adversely affecting their ability to understand consumer behavior better. Ultimately, personalized marketing and customer retention become murky territory for restaurants. It is irrespective of all scales and types.