How To Partner With Online Food Aggregators In 2023

The demand for online food ordering has steadily gained momentum in the last few years. Revenue in the Online Food Delivery segment is projected to show an annual growth rate (CAGR 2022-2027) of 21.13%, resulting in an estimated market volume of US$71.63bn by 2027. Online food ordering platforms such as UberEats, DoorDash, Postmates, Zomato, Swiggy, Deliveroo, are fulfilling this demand for food delivery, by listing restaurants and cloud kitchens on their app and website, and allowing consumers to place online orders in just a few clicks. Partnering with these online food marketplaces becomes even more critical for the cloud kitchens, or delivery-only food businesses since these platforms enable the cloud kitchen to generate orders from day 1. In this article, we will discuss how you can register your restaurant business on online food ordering platforms.

The Complete Guide to Partnering With Online Food Ordering Platforms

It’s no secret that places like Zomato and Swiggy have become the first choice of customers looking to order food online. With the kind of options available there on these apps, it’s more likely than not that the customer won’t pick up the phone to especially ordering from your outlet if you aren’t present online. In this case, tying up with Swiggy or online food ordering platforms and delivery services becomes very important. 

“The competition is so intense right now among restaurants that nobody wants to be left out in any medium where they can generate orders. At this time Zomato and Swiggy are the mainstays of almost all strong places for their orders especially in non-peak hours,” 

How To Tie Up With Zomato For Delivery?

Wondering how to list on Zomato? Here is what you need to do:

Step 1: Have the following documents ready: 

• FSSAI certificate (application number if the license has not been received)
• PAN Card
• GST certificate (if applicable)

Step 2: Create your restaurant’s page on Zomato. For this, you can visit the add restaurant page and fill in the form that requires details like address, phone number, map location, etc. You may also need to upload copies of your current menu.

Step 3: Apply for Zomato Partner Registration, available at the bottom of the website. Post registration, you will get access to their ‘Restaurant Partner App’ and ‘Restaurant Partner Web Dashboard’. Alternatively, you may also give a missed call to +91-8039654500, and a Zomato representative will reach out to you within a day.

Step 4: Upload copies of the documents mentioned in Step 1 along with your restaurant’s bank details. Zomato will review these documents and issue an approval post verification. In the meanwhile, you can fine-tune the details of the online menu, pricing, and additional charges (if any).

Step 5: Go live! Post approval, a Point of Contact (POC) will be assigned to you by Zomato with whom you can get in touch in case of any issues, else you may also email them at [email protected].

How To Set Up Delivery With Swiggy?

Wondering about Swiggy’s onboarding process? Here is what you need to do:

Step 1: Have the following documents ready: 

• FSSAI License copy
• Aadhar copy (for KYC)
• Your Restaurant Menu
• Bank Details
• GSTIN (optional)
• PAN card
• Canceled Cheque

Step 2: Log on to Swiggy’s website to launch a Partner with Swiggy form and fill in the required details like the restaurant’s name, phone number, city, etc. Alternatively, you may also drop them an email regarding partnering at [email protected]

Step 3: Upload the documents containing details of FSSAI number, GST, Pan, and Bank details as mentioned in Step 1. A copy of the menu and a takeaway bill will need to be submitted as well.

Step 4: E-sign the onboarding form and submit it. Swiggy will get back to you after verifying all the documents in 7-10 working days to formally sign a Partnership Agreement.

Step 5: You are live! Post approval, you will be liable to pay a one-time onboarding charge that will be deducted from weekly payouts once you start receiving orders from Swiggy. In case of any issues during the onboarding process, you can get in touch with them at 080-67466777/68179777 or at [email protected]

Documents Required for Partnering With Online Ordering Platforms

Documents required for signing up on online food ordering platforms include some essential certificates and identity details. Still, they could differ from company to company and even in different localities depending on the local requirements. Here’s the first list, though.

1. You need to have an FSSAI license certifying the quality of food to be able to sign up. 
2. You require a PAN card if the small business or in the company’s name 
3. A canceled cheque for the business 
4. A copy of your bill for the details of charges and taxes 
5. Owners’ details such as photographs, identity proofs, among other things. 

Before signing up, however, a couple of things need to be kept in mind. These mainly belong to the cost of doing business with food technology companies, and the cost is usually in the form of a percentage commission from the total amount of each order. 

Commissions Charged by Online Food Ordering Platforms

Here’s a ready reckoner on the commissions charged by Zomato and Swiggy. The point to note here is that these values are averages based on anonymous feedback from restaurants and differ from place to place, depending on the frequency of orders and availability of delivery personnel. 

Online food ordering platforms charge a certain percentage of the total order value. These commissions are decided at an individual restaurant level and depend on factors such as average order value, expected order volume, delivery costs, etc.

The commission charged by these apps can range anywhere between 12-18%. The commission can go up to 18-25% if delivery is also included.

While having a presence on such online food ordering platforms is a must as it helps you increase your reach, it is also a good idea to have your website or a mobile app that will let your customers order food online. 

What kind of returns can restaurants expect from online food aggregators?

Multiple factors can influence the kind of returns any restaurant can expect from partnering with an online food aggregator. 

Restaurant format

Different kinds of restaurants are popular on different channels of service and delivery. Some restaurants, such as food chains and pizzerias, are more successful on food delivery platforms as their food is more suited to being transported and still tasting good upon arrival. However, restaurants like fine dining establishments do not see similar success as the dining experience is a vital part of their offering. 

Restaurant location

Restaurants located in densely populated areas with a high demand for food delivery (especially near offices and student residencies) are more likely to see a higher volume of orders and corresponding returns. 

Terms of partnership

The commission charged by your online food aggregators are the major cons of this partnership and can sometimes outweigh the pros if your restaurant business is not flourishing. This can eat into your restaurant’s profits, so you must consider whether increased sales returns outweigh any such fees or commissions.

Despite these factors, in general, restaurants can expect to see an increase in the volume of orders and a corresponding increase in revenue as a result of partnering with an online food aggregator. These platforms offer a new channel for restaurants to reach more customers and can help to increase the visibility and accessibility of the restaurant to a larger audience.

However, restaurants need to ensure that they have the capacity to fulfill the additional orders that may be generated through the aggregator’s platform. This may require the restaurant to hire additional staff or make other operational changes to accommodate the increase in business.

How to Optimize Different Online Food Aggregators

The way people eat continues to evolve. And the restaurant businesses need to ensure that they’re correctly tapping into the revenue pool. Partnering with online food aggregators will help you maximize your income because you are expanding your business. Your brand presence has now moved outside of the physical location of the restaurant and is now being distributed across multiple other platforms. 

To ensure that you are making a profit, even when your food delivery system is handled by online food aggregators like Zomato & Swiggy, here are a few steps you can take to make your restaurant business profitable and lucrative and improve the number of repeat orders. 

Accurate Delivery Time

Today’s world functions on instant gratification, your every movement can be tracked, and customers will not display the same patience if your delivery is delayed. The competition is high in this market, and it is critical for your restaurant to deliver meals on time. Prompt deliveries play a massive role in minimizing any unfavorable image of your restaurant. To ensure that you are setting a realistic expectation that your staff and the online platform will not be able to meet, specify the precise time on the app so that your customers can set their expectations accordingly. 

Marking Orders Ready

Every minute is critical when it comes to food delivery. It is super essential to mark your order ready on the partner app to ensure that the assigned delivery folks receive all the alerts on time and pick up your food while it is still piping hot. This lowers the chances of your food becoming cold and stale.

Adhering to the KPT

Timely food delivery is a direct outcome of timely food preparation. Your kitchen should focus on cutting down meal preparation time as much as possible. If you do not cut the preparation time, you are eating away from your delivery time which might lead you to lose potential customers and repeat orders. 

Target Your Lower AOV deals

AOV refers to Average Order Value. Through online aggregators, you can target your lower AOV deals. In contrast, mid sized deals can be targeted through your direct delivery channel, and the largest or premium deals can be targeted through dine-in. The delivery costs associated with low AOV deals remain the same, so the best way to make the most out of it is to upsell those items as add-ons while the customer is placing an order via the apps. 

Pricing & Portion Size

It would be best if you have a different price and menu for each channel. Most restaurants have started hiking up their prices by at least 10-25% on these platforms. This allows them to have better margins on orders placed through them. However, many aggregators often get restaurants to sign a price-parity clause to ensure that the pricing remains the same across all channels. A way to escape this is by having a different portion of the menu with different pricing on the platform. For example – if you’re serving 500g of fried chicken at a specific price – you can serve 300g with a price that is slashed from the original but still gives you scope for ample profit on the app.

Badges to Increase Visibility

Online aggregators like Zomato and Swiggy have badges that you can get to increase your restaurant’s visibility. And you must invest in keeping your restaurant services up to the mark to earn all those badges if you want to offer your restaurant actual worth and legitimacy in front of your customers. 

For example, the online aggregator platform Zomato has a badge for ‘Max Safety,’ which means that your restaurant is taking all the precautions to provide food to the customers in the cleanest possible manner. This badge came to the forefront during Covid-19 to assure the customers that the restaurant is following all the necessary protocols to provide clean and sanitary meals. 

Find out how to have your own online food ordering system here. 

*The figures mentioned are approximate and are subject to vary from restaurant to restaurant. The information has been collected from different restaurant owners and the food tech company’s employees.