How To Arrange A Tie-Up B/W Restaurant And An Online Food Delivery App

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How To Arrange A Tie-Up B/W Restaurant And An Online Food Delivery App


When the restaurant is set-up, staff are recruited and the tables are set, next comes the task of popularising the business and attracting the 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 not only 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 earning.

FSSAI License – A prerequisite to every food business

Irrespective of whether you are the owner of a commercial unit or a home-based food supplier, whether the mode is online or offline, the scope is very wide. It covers all food service providers including hotels, restaurants/boarding houses, clubs etc. serving food, canteens of offices and educational institutions, caterers, banquet halls with food catering arrangements, food vendors like dabbawallas etc. Before taking the big jump, it is important 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 names of hundreds of restaurants that had not obtained an FSSAI registration number.


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 Aadhar 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 will be required to maintain appropriate standards of hygiene, presentation and timely delivery of the food. You may also have certain rights under the contract against the food delivery application. The most crucial condition to look out for is the range of commission being charged. While most online platforms like Swiggy and Zomato may charge between 15-25 percent 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.

There exist several distinct and exclusive advantages of associating with online food delivery companies. Through this arrangement, you may be able to by-pass appointing and managing your delivery, which may entirely be taken care of by the company. 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, servings and improve on shortcomings.

Find what happens when you don’t have an FSSAI License for your food business in India.

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