A few years ago, a global pandemic flipped the world upside down, bringing a significant transformation to our food consumption habits. Online food orders witnessed a surge, and restaurants ventured into a new avenue for making revenue. However, the reality was not as rosy as it appeared at first glance.
Hefty commissions, high delivery costs, and promotional costs to spotlight each restaurant impacted its profitability. All seemed lost because you had to pay a heavier price, quite literally, just to secure a few extra orders. Is there perhaps a better way to eliminate these constraints? Fortunately, there is! Presenting the ONDC network for restaurants!
The ONDC network, or Open Network for Digital Commerce protocol, is an ecommerce initiative launched by the Indian government which is said to be the next digital revolution, on par with the UPI (United Payments Interface) initiative. Now, you might be wondering: What is the ONDC network? Why should I join the ONDC network? How do I do so? We’ve got you covered with this quick guide!
Contents
- What is the ONDC network?
- Benefits of the ONDC network for restaurants
- ONDC network vs. other food aggregators
- How buyers use the ONDC network to order food online
- How to register my restaurant on the ONDC network
- How can Gofrugal help you transform digitally?
What is ONDC?
The ONDC network, or Open Network for Digital Commerce protocol, is an innovative initiative aimed at reshaping India’s digital commerce ecosystem and making it more democratic. The ONDC network operates on open protocols and fosters collaboration among online marketplaces, sellers, buyers, and logistic providers under one roof.
Its core goals include boosting transparency in online transactions, ensuring fairness and inclusivity in ecommerce, democratizing opportunities, and offering accessible digital commerce infrastructure to all Indians. Consumers can now place orders for any dish of their choice, from burgers to biryanis, on everyday apps such as Paytm, Pincode (by PhonePe), IDFC, and others.You can strengthen your online presence by opting for food deliveries through the delivery providers on the ONDC network. The ONDC network helps create effectual awareness for your restaurant without having to incur additional digital marketing expenses or worry about the logistics involved in making faster food deliveries. This empowering platform has sowed its seeds by integrating with the retail and restaurant industries and is poised to expand to other sectors such as tourism, hospitality, travel, and similar industries.
Benefits of the ONDC network for restaurants
Small and medium business owners can fight against the heavy commissions charged by food aggregators by onboarding to the ONDC network. Here are three key reasons why you must adopt the ONDC network’s food delivery partners for your restaurant.
Lower costs, higher profits
Food delivery through delivery partners on the ONDC network benefits both your customers and yourself. According to a Gofrugal consumer research study conducted in 2022, 86% of respondents agreed that the pricing on online food delivery apps had skyrocketed. Hefty commission rates, delivery charges, and other promotion-related fees were discovered to be the primary causes of the price increase, influencing both people’s perception and profitability.
The ONDC network arrived to save your business and revitalize your profitability. Third-party food aggregators typically charge high commission rates ranging from 25% to 30%, which can greatly impact your profit margins, especially if you are running a smaller restaurant such as a food truck or a cloud kitchen. In comparison, the ONDC network operates with a significantly lower 3% referral fee for finding you a potential buyer.This translates to a commission charge that is approximately 8 to 10 times lower than the industry average rate.
The ONDC network also helps eliminate differential pricing for online orders. Your customers can enjoy your delicacies at the same price, whether they’re dining at your restaurant or eating in the comfort of their own homes!
Fortify your online presence
The ONDC network offers you an incredible opportunity to strengthen your online presence and makes it effortless for customers to discover your delicious food. You can reach out to a larger audience with the help of food delivery partners on the ONDC network.
Unlike other food aggregator apps that require an additional fee to spotlight your restaurant, the ONDC network provides a location-based highlighting feature, so customers can quickly find your restaurant based on their proximity to your location. Thus, the chances of attracting customers who are actively seeking food delivery in your area are increased. The best part? You don’t have to incur any additional expenses!
Aside from boosting your online presence, you can easily establish a digital storefront with the ONDC network. You can enable customers to browse through your offerings, learn more about the products, complete their orders, and track the estimated delivery time, similar to a third-party food aggregator app. The significant feature of the ONDC network is the freedom it provides you to define your offerings. You can set your policies when it comes to pricing, delivery, or processing returns.
Gain transparent access to customer data
The crown jewel benefit of the ONDC network is the unparalleled transparency it offers in terms of customer data, transactions, and commission costs. As a restaurant owner, you understand the challenges posed by the lack of customer data provided by third-party food aggregators. Crucial details, such as customer addresses are often masked, limiting your ability to nurture relationships with your patrons. Furthermore, as mentioned earlier, hidden fees charged by these aggregators can catch you off guard. The ONDC network provides a comprehensive solution that addresses all these concerns seamlessly.
On the ONDC network, you gain valuable access to customer data, empowering you to delve into customer preferences, order history, and demographics. This information becomes your key to understanding your customer base better, discovering emerging trends, and personalizing the overall customer experience.
The ONDC network also adheres to privacy and data protection regulations to ensure the data you receive from your customers was collected with their consent. You also gain insightful visibility on your sales and revenue data, including details such as order value, payment method, and order fulfillment status. You can effortlessly track and analyze your commission costs for every transaction facilitated on the ONDC network.
ONDC vs. Other Food Aggregators
According to an article by Inc42, the emergence of the ONDC network is a potential game-changer for the restaurant industry in India. Compared to other food aggregators, the ONDC network promises a more transparent platform for processing online food delivery orders. Here are a few key advantages that the ONDC network has over other food aggregators.
Lower commission fees
You can benefit from lower commission fees while selling on the ONDC network for your restaurants. This means your costs associated with processing online orders are reduced. You can enjoy retaining a higher percentage of your sales and increasing your restaurant’s profitability.
Enhanced control over business
With the ONDC network for restaurants, you will have more control over your business operations and online presence. By creating your digital storefront, you can directly interact with your customers. This ensures an accurate depiction of your brand and the ability to nurture direct relationships with your customers.
Improved customization
You can enjoy greater flexibility in terms of customizing your menus, pricing, and promotions. You can easily update your menus, make pricing adjustments, and run tailor-made promotions based on specific market trends. This enables you to adapt better to market trends and customer preferences.
Stronger online presence
You no longer need to rely on a single platform to process online orders. The ONDC network connects you with multiple buyer apps and platforms, helping you expand your reach and gain independence from third-party food aggregators. The ONDC network can also help you gain more local exposure and attract customers who are specifically looking for nearby dining options like yours.
Access to transparent data
The ONDC network for restaurants provides you with an incredible advantage when it comes to accessing customer data. You can enjoy greater control and ownership over customer data, helping you unlock the potential of data analytics and insights. Using these insights, you can make well-informed business decisions, understand your customers’ behaviors, and personalize their experiences. This will also help you stay abreast of the latest trends and ahead of the competition.
How buyers use the ONDC network to order food online
Utilizing the ONDC network for ordering food online presents an exceptional opportunity for both restaurants and customers. Buyers should begin by signing up or logging into a preferred buyer app like Paytm, Phonepe’s Pincode, Craftvilla, or similar options. Then, they input their delivery pin code to confirm service availability in their city. Next, they can explore the diverse food offerings, compare their choices, and select their desired meal. After that, they simply have to provide their delivery address, complete the payment process securely, and confirm their order. They’ll receive order details via SMS and email for their convenience.
Once an order is placed, it’s the restaurant’s responsibility to prepare and dispatch the food that has been ordered. Buyers can track the progress of their order using the tracking information available within the app. Should any issues or delays arise, buyers can rest assured that the buyer app’s support team is readily available to assist them. This user-friendly approach ensures that ordering food online through the ONDC network is a hassle-free experience, making it a win-win for both customers and restaurants alike.
How to register my restaurant on the ONDC network
Registering your restaurant on the ONDC network is pretty simple. There are two main prerequisites for completing your registration journey: joining a seller platform, and A registered restaurant business.
A seller platform
As a restaurant owner, the first requirement is to subscribe to an approved seller platform. All relevant product information, such as pricing, images, and offers, are displayed on the buyer apps directly from your seller platform. This provides you with complete control over what customers see when browsing your offerings. You’ll also be able to manage all operational aspects such as sales orders, payments, and deliveries from your seller platform.
How do you choose a seller platform?
Here are a few rules of thumb you can use to evaluate the ideal seller platform for your restaurant:
- Seamless onboarding and user-friendly interface for ease of use.
- Capability to support your business operations and aspirations in the long term.
- Ability to facilitate omnichannel presence through a single platform for pricing, inventory, and customer management.
- A comprehensive end-to-end solution that offers you a hassle-free experience, from selling, to billing, to filing.
Choosing the right seller platform will help you thrive in the long run. You can make the most of the opportunities on the ONDC network by partnering with Gofrugal. As a leading seller platform on the ONDC network, not only do we help with easier onboarding, but also in digitizing your store, inventory, and operations efficiently and cost-effectively.
A registered restaurant business
To get started with Gofrugal and become a part of the ONDC network, you’ll find the registration process to be incredibly simple. All you need is an essential set of prerequisites such as an active GST number, FSSAI certification, your business’s financial information, PAN number, and a cancelled cheque, to complete the verification process.
Once you’ve completed the verification process with ONDC, Gofrugal will generate a unique key that will be linked to your GST, establishing your unique identity on the network. After that, Gofrugal will assist you in creating your merchant account, which includes setting up your store name, menu, and providing your bank account details for receiving payments. You’ll also have the opportunity to list your delicious dishes on popular buyer apps like Paytm, Pincode by PhonePe, Craftsvilla, Mystore, Spicemoney and more.
Through these buyer apps, customers will be able to discover your offerings directly, helping you expand your customer base and boost your sales. Joining the ecommerce revolution, just like many of your peers, is as easy as partnering with Gofrugal. We invite you to seize this opportunity to grow your customer base. Additionally, you can kickstart your journey with a 15-day free trial of our restaurant management system, fully compliant with the ONDC protocol.
As a seller within the ONDC network, there will be certain fees involved, which can vary depending on your role, whether it’s as a buyer app, seller app, logistics provider, or any other participant. Please note that these fee rates are not set in stone and may change based on the agreements and structures in place during onboarding. We strongly recommend reviewing the commission structure, terms, and agreements meticulously during the onboarding process. This will enable you to make well-informed decisions regarding referral commissions that align with your specific role and requirements within the network.
How can Gofrugal help you transform digitally?
Onboarding on the ONDC network is just the beginning of the many benefits you can enjoy by partnering with Gofrugal. By joining forces with us, you can gain access to comprehensive digital solutions to manage your business seamlessly, both online and offline. Our restaurant management system equips you with essential modules for managing sales, purchasing, inventory, orders, customer loyalty, and delivery all in one place.
You can truly achieve an omnichannel transformation with us, ensuring your customers enjoy a smooth and consistent experience irrespective of the way they choose to do business with you. Our team provides 24/7 support to facilitate a smooth transition to our platform. We also offer customized integrations that are aligned perfectly with your restaurant’s needs.
Partner with us today and embark on a transformational journey on the ONDC network. Explore new opportunities with the ONDC network for restaurants by unlocking the full potential of this service today!
