Setting up a Restaurant
When the restaurant is set up, staff are recruited, and the tables are set, next comes the task of popularising the business and attracting customers. One way is to advertise, but with the uncertainty in turnover involved compared to the investment, it may be wiser to consider the other alternative – partnering with online food delivery applications.
It helps popularise the place with its distinctiveness but also helps reach out to a whole new customer base. The best part about most of the upcoming food delivery applications is that registering on them is free of cost. However, they charge a commission based on the earnings.
Fssai License – A Prerequisite to Every Food Business
Before taking the big jump, it is essential to check which type of FSSAI license is required and the same has to be got at the earliest. Not long ago, many food delivery applications including Swiggy and Foodpanda, had removed the names of hundreds of restaurants that had not obtained an FSSAI registration number.
Fssai License, also known as the Food Safety and Standards Authority of India License, is a mandatory requirement for every food business in India. It is a legal document that certifies that the food business has been registered with the Food Safety and Standards Authority of India (FSSAI) and meets all the regulatory standards set by the authority.
The FSSAI License is issued to ensure that the food products produced and sold by the business are safe for consumption and meet the required standards of quality. It is also a way for the government to monitor and regulate the food industry in India to protect the health and safety of consumers.
Steps to Arrange a Tie-up B/W Restaurant and an Online Food Delivery App
- Step 1: Research potential online food delivery apps that would be a good fit for your restaurant. Consider factors such as customer base, delivery area, and fees.
- Step 2: Contact the online food delivery app to inquire about partnering with your restaurant. Be prepared to provide information about your restaurant, including menu, location, and pricing.
- Step 3: Negotiate the terms of the partnership, including any fees or commissions that will be charged for the use of the delivery app.
- Step 4: Set up an account with the delivery app and provide them with any necessary information, such as menu items and pricing.
- Step 5: Train your staff on how to use the delivery app and handle orders placed through it.
- Step 6: Promote the partnership through your restaurant's marketing channels, such as social media, email newsletters, and in-store signage.
- Step 7: Monitor and track the success of the partnership, and make any necessary adjustments to ensure it is a mutually beneficial relationship.
Benefits of A Tie-Up B/W Restaurant And An Online Food Delivery App
There are several benefits of a tie-up between a restaurant and an online food delivery app:
- Increased Reach: By partnering with an online food delivery app, a restaurant can reach a larger audience, including those who may not be aware of the restaurant or its location.
- Convenience for Customers: Customers can easily order food from their favourite restaurant using the online food delivery app without the need to visit the restaurant physically.
- Increased Orders: By making it easier for customers to order food, the restaurant will likely see an increase in orders, which can lead to increased revenue.
- Cost Savings: An online food delivery app can help a restaurant save on costs such as marketing, as the app handles promotions and advertising.
- Customer Data: By partnering with an online food delivery app, a restaurant can access valuable customer data, including preferences and ordering habits, which can tailor marketing efforts and improve the customer experience.
- Flexibility: An online food delivery app allows a restaurant to offer flexible options such as delivery, pickup, and dine-in, which can help attract and retain customers.
Requirements to Arrange a Tie-up B/W Restaurant and an Online Food Delivery App
Filling Basic Details on the Delivery Apps’ Website
The first step is to fill out basic details of your business, its location, number of outlets, types of cuisines served, website links to the restaurant, contact details etc.
Getting Necessary Documents
Other than the FSSAI License, which is of great importance, you may be required to take a GST Registration number. Other documents that may be required are scanned copies of PAN card in the business name, proprietor details like Aadhaar card, Voter ID, Passport, Driving License, electricity and other utility bill copies.
Reading the Terms and Conditions Carefully
This is possibly the most important step in the process, as it spells out your liabilities and obligations after the online food delivery application accepts the request for a listing. As a participating restaurant, you must maintain appropriate standards of hygiene, presentation and timely food delivery.
You may also have certain rights under the contract against the food delivery application. The most important condition to look out for is the charged commission range. While most online platforms like Swiggy and Zomato may charge between 15-25 per cent of the total bill amount, they also have dynamic pricing norms and the commission in some cases may be as low as 5-8 percent (for newer areas or a niche offering of a new food product).
Linking payment mechanisms
The last leg is to give details of your bank account or online wallet for receiving the receipts from purchases made for your restaurants on the food delivery company’s website or mobile app. Several distinct and exclusive advantages exist of associating with online food delivery companies.
Through this arrangement, you may bypass appointing and managing your delivery, which the company may take care of. All food delivery applications, with their website and mobile-based versions, give you the ability to showcase your menu, pictures of food and the set-up without incurring extra advertising costs. The feedback mechanism also helps in guiding you to tailor your menu and servings and improve on shortcomings.
Find what happens when you don’t have a food & safety license for your food business in India.
Why Vakilsearch?
We have a highly skilled team of lawyers and legal experts with years of experience negotiating between businesses. Vakilsearch’s in-house lawyers and legal experts will contact you during the entire process, and they will walk you through the process. Once the requirements have been discussed, we will start the negotiation process. The pricing of Vakilsearch’s services are very less compared to other legal firms in India.
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