4 in 10 dine-in restaurants begin food delivery in India: Survey

Four in every 10 dine-in restaurants have started delivery services post-lockdown and the majority (57 per cent) of their orders are still coming from the food aggregator platforms, a new survey said on Monday.

Out of the 43 per cent who select direct channels for food delivery, half of the respondents prefer ordering via WhatsApp or the mobile number of the restaurant, according to POSist, a Cloud-based restaurant technology platform.

In order to keep up with the pace of change, restaurateurs are experimenting with delivery models like cloud kitchen and opting for Direct-to-Consumer (D2C) channels to build a community of customers they can engage and grow.

The survey, launched in September, examined the impact of Covid-19, changing consumer behaviour towards dining and food delivery, and the new areas of technology restaurateurs are investing to build customer trust.

“It’s not surprising that 80 per cent of restaurateurs agree that technology is important to run a restaurant business. We believe businesses that have been able to quickly adapt technology are better equipped to reopen with ease,” said Ashish Tulsian, co-founder and CEO of POSist.

While 65 per cent of restaurant owners ranked high-operating costs in form of variable expenses such as labour, food, salaries, marketing, etc as their biggest pain point, 55 per cent cited fixed rentals as a challenge.

Nearly 52 per cent of the respondents placed their bet in setting up a Cloud Kitchen or a delivery-only outlet, followed by 44 per cent who have expressed interest in investing in technology to digitize their restaurant operations.

The findings showed that 80 per cent of restaurant operators feel that quality and safety will surpass price as a decision-making factor for cost-conscious customers.

Nearly 33 per cent of restaurants have installed an e-menu using a QR code ordering technology at their outlets.

“Half of the restaurant owners mentioned that they have an integration with a digital payment provider, and almost 40 per cent of restaurants have their own online ordering website,” the survey said.

“It is interesting to note that 80 per cent of the restaurant operators agree that deploying technology is important in these times”.
In total, 300 senior executives in the restaurant industry participated in the survey across the country.

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