Food deliveries at quick service restaurants back at pre-covid levels



Almost all brands have restarted promotions, upfront discounts of 20-40%, or cash-back offers on deliveries, either through aggregators or exclusively on their own apps, to spur demand as most consumers remain indoors and offices and schools continue to operate largely from homes.

Large quick service restaurants such as Pizza Hut, McDonald’s and KFC said their delivery sales have either reached pre-Covid volumes or witnessed significant pickup over the past two weeks since lockdown curbs eased. This comes at a time when dine-in sales remain negligible.

“We have reached pre-Covid volumes on delivery, spurred by offers like ‘buy one, get one free’ and 40% savings on larger boxes,” said Merrill Pereyra, managing director of Pizza Hut India.

The chain owned by Yum Restaurants has introduced individual consumption boxes in select cities across delivery and takeaway since consumers would be conscious about sharing food, he said.

Almost all brands have restarted promotions, upfront discounts of 20-40%, or cash-back offers on deliveries, either through aggregators or exclusively on their own apps, to spur demand as most consumers remain indoors and offices and schools continue to operate largely from homes.

McDonald’s India – North and East said business is making a comeback. “We have seen growth in our delivery sales, as people are ordering more,” a company spokesperson said. “Besides, drive-thru’s are also performing well, as a result of speed with which we can serve customers.” The burger-and-fries chain said it has opened over 130 restaurants in the North & East since the time the government announced relaxation of restrictions.

KFC India chief marketing officer Moksh Chopra said: “Wednesdays and weekends continue to be big crowd pullers.” He said delivery continues to be strong, with about half its sales coming from the channel. Contactless deliveries, takeaways and dine-in have received “encouraging response”, he said.

Delivery platform Swiggy said the overall supply has grown to over 50% of what it was in pre-Covid period. “We are witnessing an increase in orders from customers who are unwinding from the recent lockdown and ordering frequency from this segment has doubled or tripled,” a Swiggy spokesperson said. “With restaurants resuming operations gradually, and many other factors improving, we expect this boost in demand for food delivery to further pick up pace and start inching towards the pre-Covid levels.”

McDonald’s West and South, operated by Hardcastle Restaurants, on Friday announced a 'Thank God its FriYaY' promotion which it said was exclusively on delivery platform Swiggy at discounts of over 20%. Swiggy’s rival Zomato on Friday announced flat 30% off on its Zomato Gold platform.

Zomato Gold, which covers both dine-in and delivery, has been a bone of contention with restaurants which in its original format offered one-plus-one, or two-plustwo offers on food or liquor with participating restaurants taking the discounts. Restaurants across fine-dine, which require larger spaces and rely on ambience and instore experiences, however, said reopening outlets is not an ideal option unless rentals are waived off or reduced, given half capacity seating and restrictions on timing and serving of alcohol.

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