Zomato is an aggregator and is also an individual business that doesn’t force any restaurant to be part of the platform nor it controls the industry directly. Yes, it is a disruption of a good scale which is a factor for the food business.
Zomato must have affected even some of the most established food businesses. That was to only creating a leveling field for the new players as the markets keep opening in all sectors. However, the larger contribution comes from the new, attracted, short-sighted and inexperienced players who have just jumped the guns and tried to utilize the free reach of Zomato to millions of potential customers.
Marketing, delivery, digital presence – Zomato and other platforms provide sufficient to operate a food business. That has good products, has a long-term vision, experience, and will to serve good food to customers.
This transition is hurting the restaurants because of the crowd of the business taking the share of orders and do not have any long-term vision in the food business. More so the food businesses are the first ones to suffer when the economy takes the hit! When the jobs are not secure, growth is slowed down – people tend to spend less and less on luxuries, and “eating out” is the first thing that you can immediately cut.
NRAI- National Restaurant Association of India may want to structurize their battle to have a long-term benefit in this increasingly competitive sector.
Why #Zomato wouldn’t budge?
What is getting hampered? Zomato’s number of orders per day. Why is that? Restaurants are logging out. How can they provide the food then? BY STARTING THEIR KITCHEN.
And they are ready with that. They are going to run unbranded central kitchens under Zomato and are going to provide food through those kitchens without depending on the restaurants. The customer base is now settling to the food over brands. They need meals, they need to fill up their lunches and dinners.
This transition is going to be very interesting over the next couple of years but we will have to see if this can help the customers in any way in terms of ensuring the quality of the food, hygiene, menace of adulteration, etc.
Ultimately, cheap or not – most of our health issues account for the kind of food we consume.