IGI Logo

Our survey reveals - Advertising on food aggregators is a HIT; eB2B getting good traction

We surveyed 220 restaurants across 40 cities and towns pan-India between 25th Aug’23 – 10th Sept’ 23, to assess various parameters such as take rates charged by food aggregators, restaurant level AOVs, propensity of restaurant partners to advertise on the food aggregator platforms, ad-spend effectiveness for restaurants and usage of Hyperpure (Zomato’s B2B e-commerce offering) by restaurants. We highlight our key findings in this note along with some anecdotes shared by some of the respondents where relevant.

Median gross take rate reported by restaurants - 23%

We note that 44.5% of respondents were unwilling to share any data on take rates. However, most of the 55.5% who did respond, quoted the gross take rate including delivery fees charged by the aggregators. 10.5% reported gross take rate <=20%; 24.5% reported gross take rate >20% & <25% and 20.5% reported gross take rate >=25%. Our survey also indicates that take rates are lowest for ‘top 8’ cities and keep increasing as we move to ‘next 12’ and tier 2/3 cities. We also note that northern zone cities reported higher take rates and premium restaurants with ticket size >INR 700 for 2, reported lower take rates.

53% of respondents have advertised & 88% of them satisfied

We also note that among those who are advertising on the food delivery platforms, 8.5% found it very useful, 75.4% found it useful and 4.2% found it somewhat useful. Interestingly, we found that the proportion of advertisers is highest in ‘next 12’ cities (60%), followed by ‘top 8’ cities (55%). Advertiser satisfaction is highest in ‘next 12’ cities, where 94% are satisfied; followed by ‘top 8’ cities where 91% are satisfied. North zone has highest proportion of advertisers (59%). However, advertiser satisfaction is highest in South zone at 95%. Hyderabad is leading in proportion of advertisers (80%). A key callout here is that 5 of the ‘top 8’ cities have 100% advertiser satisfaction. Interestingly, high rated restaurants have lowest proportion of advertisers at 43% vs 57% each for mid and low-rated restaurants. Mid-rated restaurants have the highest advertiser satisfaction.

Hyperpure being used by 37% of respondents in relevant cities

Our survey indicates that Hyperpure has currently been rolled out in 10 cities, which includes the ‘top 8’ cities, Ahmedabad and Gandhinagar. In these cities, we found 37% of respondents are using Hyperpure and 19% said they are using Hyperpure more than 10 times a month, while 18% are using it less than 10 times a month. Another 7% mentioned they have stopped using Hyperpure. Our survey reveals that Gandhinagar has the highest propensity to use Hyperpure (60% using Hyperpure) followed by Delhi NCR (55%), Ahmedabad (50%) and Chennai (40%). In terms of regions, North is leading in Hyperpure adoption (52%) followed by West(35%).

For More ICICI Direct Disclaimer http://icicidirect.com/disclaimer.html

SEBI Registration number is INZ000183631