New Delhi: Food ordering and delivery platform Swiggy on Wednesday announced the introduction of a new initiative 'BrandWorks', to co-create delivery brands with its restaurant partners.
These brands, co-created by the company's BrandWorks, are delivery brands that operate out of the restaurant partners' existing dine-in facilities. This is an asset-light low-investment model, Swiggy said in a statement.
This model can, therefore, scale rapidly and generate revenue for restaurants from day one with negligible capital investment — a win-win for all stakeholders, it added.
"Having created over 1,000 Access kitchens for our restaurant partners, we are now meeting unmet consumer needs by co-creating delivery brands through our BrandWorks initiative," Swiggy New Supply CEO Vishal Bhatia said.
This is an important step in bridging supply gaps, creating consumer delight and offering restaurants unmatched growth opportunities through an innovative business model, he added.
"Our goal is to co-create hundreds of such brands with multiple restaurant partners across the country by the end of 2020," Bhatia said.
Swiggy currently has 100 such brands on its platform that were co-created with 95 restaurant partners across 13 cities, the company said.
Both models offered by Swiggy complement each other — Swiggy Access facilitates easy expansion of restaurant brands across locations while BrandWorks helps restaurant partners expand their brand portfolio using existing kitchen space and culinary abilities, he added.
On being asked about the business model for BrandWorks, Bhatia told PTI, "It is a variablised commission model."
The idea is to co-create a brand using Swiggy's intelligence and insights and the brand ownership remains with the restaurant partners. It is through deep engagement and ongoing conversation with partners that these brands are created, he added.
In a similar vein, Bercos Managing Partner Kabir Advani on the launch of their latest delivery brand 'House of Chow' said, "Food delivery is a big part of the restaurant business today and it is crucial for us restaurateurs to tap into this demand to grow our businesses."
By co-creating "our new delivery brand —House of Chow — our consumer base has grown without diluting our parent brand and the asset-light model eliminates risks of extending our brand portfolio. Truly a win-win proposition," he added.
The restaurant owners are also exploring extending these brands into dine-in formats as well, the statement said.
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Updated Date: Feb 13, 2020 13:24:35 IST