How ONDC Can Revolutionise Restaurants in India

India’s food delivery sector has seen tremendous growth over the past few years, with Swiggy and Zomato dominating the space. While they have revolutionised the way Indians used to order food, their position has placed restaurants in tough spots.

Restaurants struggled because of the high commission fees, lack of transparency, and other unfair practices. Not anymore, though!

The introduction of the government-led Open Network for Digital Commerce (ONDC) platform has democratised e-commerce. It has minimised the entry barriers for small and medium restaurants, enabling them to participate effortlessly in the digital economy and establish effective restaurant management solutions.

In this article, we’ll see how ONDC is revolutionising the restaurant industry in India.

What is an Open Network for Digital Commerce (ONDC)?

The Open Network for Digital Commerce is a unified digital network enabling small restaurants to connect directly with consumers without intermediaries. By eliminating the need for third-party, ONDC aims to offer a fair playing field to all restaurants and foster healthy competition in the market.

With its direct-to-consumer model and lower commission fee, ONDC presents an opportunity for businesses to deliver products at lower prices, attracting more consumers.  

According to official sources, ONDC is operational in over 400 cities, including Pune, Bengaluru, Noida, Mumbai, Kolkata, and Chennai. It further claims to have onboarded over 2.1 lakh sellers/service providers.

6 Ways ONDC is Transforming the Restaurant Industry in India

Here are a few factors highlighting how ONDC is transforming the restaurant industry and supporting its growth.

1.    Increased Visibility

One of the ways ONDC helps restaurants is by enhancing their online visibility. By utilising the ONDC framework, restaurants can easily access multiple digital marketplaces and platforms. As such, they are able to reach a broader and newer audience.

2.    Lower Commission Charges

The Open Network for Digital Commerce is a cost-effective platform for restaurants as they don’t charge hefty commissions. As such, it enables restaurants to offer competitive prices, attracting more customers and improving their profit margins.

The CEO of WOW! Momo states that with the ONDC platform, they have been able to deliver 50,000 orders monthly and increase profit while paying 4-6% of commission per order, which is one-third of those charged by big food delivery apps.

3.    Offers Transparency

The Open Network for Digital Commerce offers restaurants access to valuable data-driven insights and analytics. With that, restaurants develop a deeper understanding of consumer preferences, buying habits and market trends. Armed with this knowledge, restaurants can tailor their approach and offerings to exceed customer expectations.

4.    Supports Digital Payments

The integration of ONDC allows restaurants to provide secure and seamless payment solutions like restaurant POS offers to their customers. By using digital payment processing within the ONDC network, restaurants can simplify the financial process, minimise cash handling, and provide customers with hassle-free billing solutions.

5.    Promotes Innovation

ONDC encourages innovation by providing restaurants with the ability to customise their digital storefronts, menus, and promotions. This flexibility enables them to differentiate themselves and develop stronger connections with their target audience. Consumers, on the other side, have access to a wide range of choices and personalised experiences.

6.    More Control Over Business

Within the ONDC network, restaurants have more control over their business operations and digital presence. By creating a digital storefront within the ONDC, you can directly communicate with customers. This way, you provide an accurate description of your brand and nurture stronger relationships with your customers.

Summing Up

ONDC is a transformative force with the potential to reshape the Indian food delivery market and restaurant ecosystem by fostering an inclusive and competitive environment.

By leveraging the platform, restaurants can enhance visibility, streamline financial operations, and access valuable restaurant business intelligence & analytics for excellent customer experience. It empowers local and medium-scale restaurants with innovative solutions, lower commission charges, and higher profits.

With ONDC, restaurants can take steps towards a new era of growth and success, securing their spot in the thriving world of digital commerce.