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Food start-ups struggling to survive with online food delivering services

While we are talking about promoting start-ups and Make in India, the international giants of delivery systems are eating up young start-ups in the city with their discounting plans and hidden compulsory promotion strategies.
In the last six months, several food start-ups had to shut down their one or multiple outlets, as they could not sustain in the competition with Zomato, Swiggy and other such services.
“There is nothing wrong with online food services, just it does not allow a small start-up to grow and can only supplement the income of already establish restaurant chains and brands,” Akash Mishra, a food start-up owner, whose prominent outlet in Vijay Nagar was shut down recently.
He added that joining these online services seems essential for us to be more visible for our customers. “But for it, we have to pay for packages and further compensate from profits, which leaves only a slim chance of survival despite sale,” Mishra said.
Former restaurant owner Akanksha Pandey said, “The idea of going and dining in a restaurant is vanishing from the society, which not only affects business but even people.” With major part of profit in online services going to the deliver services, food start-ups in the city are facing a major downfall.
Why brands can survive but start-ups are failing?
As claimed by start-up owners, any problem in orders that are delivered to customers, they have to directly face the consequences.
“When a branded store’s order has an issue, like improper quality, missing item, or other issues, they rarely have to face the consequence, because most customers have already dined in their restaurant,” Anchal Mishra, a food start-up owner said.
In case of start-ups, since not many customers have experienced the food at their outlet, it becomes a problem. “A customer perceives that the food at our outlet is not good, even though, the issue in the order might be caused due to poor delivery,” Mishra said.
Further, many start-ups have switched over to complete online model and have no outlets in the city to continue their passion for food.
Challenge promotes innovation
Innovation is the idea that gives birth to most successful start-ups. Working on innovating ideas to survive and find their niche in the waters haunted by food delivery service giants, some start-ups have started their own delivery system.
This challenge has also spurred start-ups to make their food start-up association and will be considering a way out of this challenge.




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