Food Delivery: NRAI’s Sagar Daryani Stresses Smarter Partnerships and Lower Commissions for Sustainable Growth
The food delivery industry has witnessed unprecedented growth in recent years, with millions of consumers opting for the convenience of having their favorite meals delivered to their doorstep. However, this rapid expansion has also brought to light several challenges, particularly concerning the profitability of restaurants partnering with food delivery aggregators. Sagar Daryani, the president of the National Restaurant Association of India (NRAI), has been vocal about the need for smarter partnerships and lower commissions to ensure the sustainable growth of the sector.
One of the primary issues that Daryani has highlighted is the exorbitant commissions charged by food delivery aggregators. These commissions, which can range anywhere from 20% to 30% of the order value, significantly eat into the already slim margins of restaurants, making it difficult for them to sustain profitability. Additionally, the widespread use of discounts and promotions by aggregators further exacerbates this problem, as restaurants are often forced to slash prices to compete for customers, eroding their bottom line even further.
To address these challenges, Daryani advocates for a shift towards smarter partnerships between restaurants and food delivery platforms. He emphasizes the importance of creating a more equitable fee structure that takes into account the needs of both parties. By reducing commissions and offering more value-added services, aggregators can help restaurants improve their profitability and thrive in an increasingly competitive market.
Furthermore, Daryani stresses the importance of adapting to the evolving preferences of younger consumers, particularly Gen Z, who prioritize convenience and value in their dining choices. He suggests that restaurants embrace a hybrid model that combines traditional dine-in experiences with the convenience of food delivery. By offering customers multiple options for enjoying their favorite meals, restaurants can cater to a broader audience and stay relevant in a rapidly changing industry.
In addition to advocating for smarter partnerships, Daryani also calls for greater transparency from food delivery aggregators. He highlights the need for clear and consistent communication regarding pricing, policies, and terms of service to ensure that restaurants can make informed decisions about their partnerships. Moreover, Daryani stresses the importance of government intervention to provide clarity on regulations and policies governing the food delivery sector, creating a level playing field for all stakeholders.
Ultimately, Daryani’s call for smarter partnerships and lower commissions reflects a broader push for sustainability and fairness in the food delivery industry. By addressing the profitability challenges faced by restaurants and adapting to changing consumer preferences, the sector can achieve long-term growth and success. With transparency, collaboration, and a focus on value creation, the food delivery ecosystem can evolve into a more sustainable and equitable space for all players involved.
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