The food delivery industry in India is undergoing a significant transformation, with quick commerce (Q-commerce) emerging as a dominant force. Initially, food aggregators like Zomato and Swiggy acted as mere intermediaries between restaurants and customers. However, in recent years, they have expanded beyond their original function, introducing private-label brands and offering grocery and ready-to-eat meals alongside restaurant listings.
This shift has triggered concerns among small and mid-sized restaurant owners, who now find themselves in direct competition with the very platforms they rely on to reach customers. Are independent restaurants fighting a losing battle against billion-dollar corporations?
How Q-Commerce is Changing the Game
What is Q-Commerce?
Q-commerce refers to super-fast deliveries (10-30 minutes) of food, groceries, and essentials. It has revolutionized convenience for consumers but raised serious challenges for restaurants.
Major Issues Faced by Restaurants
1. Food aggregators are no longer just listing restaurants, they are competing with them.
~ Platforms like Zomato and Swiggy now promote their own private-label brands, directly competing with restaurants.
2. Private-label brands get priority placement.
~ These platforms control visibility, ensuring their own brands appear at the top of search results, pushing independent restaurants down.
3. Commission rates keep rising, squeezing restaurant profits.
~ Aggregators charge commissions as high as 15% to 30% per order, making profitability a challenge.
4. The supermarket analogy: The marketplace is rigged.
~ Imagine a small shop competing with a supermarket, but in this case, the supermarket also owns the shopping mall where everyone buys from. The game is unfair from the start.
FHRAI Steps in to Level the Playing Field
The Federation of Hotel & Restaurant Associations of India (FHRAI) is fighting against the growing monopoly of food aggregators. They have approached the Ministry of Commerce with key demands:
✅ Transparency in ranking algorithms – Stop the unfair promotion of aggregator-owned brands.
✅ Stricter e-commerce regulations – Clearly define the role of aggregators so they don’t become competitors.
✅ Fair commission structures – Reduce excessive fees that make it hard for restaurants to sustain operations.
✅ No preferential treatment for aggregator-owned brands – Ensure all restaurants have equal opportunities.
What This Means for Restaurant Owners
If left unchecked, Q-commerce could drive small and mid-sized restaurants out of business. However, restaurant owners still have ways to fight back:
Strategies to Survive the Q-Commerce Takeover
✅ Diversify Sales Channels – Reduce reliance on aggregators by setting up direct ordering via websites, WhatsApp, and social media.
✅ Leverage Smart POS Systems – A Point-of-Sale (POS) system like Billberry helps track sales, manage customers, and streamline operations.
✅ Strengthen Customer Loyalty – Offer discounts for direct orders to retain customers.
✅ Partner with Local Delivery Services – Collaborate with local delivery partners instead of relying solely on food aggregators.
Who Will Win This Battle?
The fight between restaurant owners (David) and food aggregators (Goliath) is ongoing, and the outcome will shape the future of the food industry in India. With FHRAI pushing for stricter regulations, independent restaurant owners are hopeful that a level playing field can be established.
However, unless proper regulatory measures are introduced, Q-commerce giants could further monopolize the food industry, making it harder for independent businesses to survive.
~ What do you think? Should Q-commerce platforms be strictly regulated?
Visit www.billberrypos.com to learn how a smart POS Software. can help restaurants stay competitive in the evolving food industry. Book a Free Demo, to learn more about Restaurant POS Software.
