Online food ordering and delivery platform, Swiggy has launched Swiggy Access, a programme which allows restaurants to move into or set up a kitchen in newer neighbourhoods.
The kitchens will be ready-to-occupy and will have a basic setup with the required amenities. Restaurants will be using Swiggy Access for their signature dishes only. These kitchens will operate as a delivery-only branch, and will not have any dine-in facility. Swiggy said in a statement that this will allow fast deliveries and reduced wait times for consumers.
This will help Swiggy to enter new delivery areas and expand consumer base in an untapped locality, and restaurants will be able to expand their businesses. “With Swiggy Access, we are diversifying local palettes, bridging geographical gaps in supply and solving for variety, quality and convenience of food,” said Sriharsha Majety, CEO, Swiggy.
According to a Livemint report, restaurants will be able to save upto to 25% of their operational costs. Swiggy will not charge any rent or deposit for the premises. However, the company will charge higher commission from the restaurant partners availing the ‘Access’ service. Note that, its rival Zomato slashed commission for food orders placed through it for most of its partner restaurants in September.
The company is starting these ‘Access’ kitchen with Bangalore, by setting up one in Bangalore’s Marathahalli area, which will be shared by Leon Grill, Keventers, and its private brands House of Dabbas and The Bowl Company, and Punjabi Rasoi. Over the next six months, the company plans to introduce close to 40 partner restaurants to newer neighbourhoods across the country through the Access programme, the company said in its statement.
In January, Swiggy had launched ‘The Bowl Company’ its own kitchen in select areas in Bangalore, in collaboration with popular restaurants to offer some items in areas where the restaurant does not have a physical presence. And the items offered from partner restaurants are listed under ‘The Bowl Company’ in this kitchen model.
Zomato infrastructure services
Note that, Swiggy’s biggest rival Zomato started providing kitchens to restaurants in February. It launched infrastructure services for restaurants, starting with Dwarka, Delhi. Under this service, Zomato provides partner restaurants with a kitchen in a city or location they aren’t based in, so they can sell food outside their home markets.
With Zomato strengthening its food-delivery game, and players like UberEATS expanding in India, Swiggy is trying to strengthen its restaurant partner base. Last month, it tied-up with Indifi Technologies to launch ‘Swiggy Capital Assist’ programme, through which it will provide easy access to working capital loans for its restaurant partners.