Ranjan stated that sales during each festive season have consistently outperformed previous years, with this year being no exception.
Food tech firm Zomato is experiencing increased interest from restaurant partners this festive season, said, Rakesh Ranjan, CEO of its food delivery business.
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“An increasing number of restaurants are realising that online delivery, especially during festivals, is highly lucrative. A few years ago, the assumption was that if they sold two orders online, they lost those two customers offline,” Ranjan told FE in an interaction.
He said restaurants are placing a strong emphasis on maximising the potential of festivals. As of Q1FY25, Zomato has around 276 average monthly active food delivery restaurant partners.
Ranjan stated that sales during each festive season have consistently outperformed previous years, with this year being no exception.
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To meet the heightened demand, Zomato starts preparing months in advance, from onboarding new riders to strengthening backend systems. The company currently has approximately 469 average monthly active delivery partners.
Each year, Zomato ramps up hiring closer to the festive season, ensuring riders are well-prepared. They are trained to handle the specific types of deliveries associated with festivals, with the company providing training videos and short-form content to its delivery partner community.
In addition, Zomato works closely with restaurant partners by sharing demand forecasts to help them plan inventory. “This varies across different cohorts of restaurants. For instance, during Dussehra, some restaurants see peak demand at lunch, while during Diwali, others experience it during breakfast. So, we now offer cohort-based communications to better prepare the restaurants,” Ranjan said. Zomato serves an average of 20.3 million customers per month.
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Regarding expansion plans, Ranjan said, “Our primary focus is to better serve our existing markets. The key to growth in these markets is increasing restaurant density.” He added that Zomato is concentrating on gathering and sharing insights about what works in these markets, enabling larger players from big cities to recognise their potential for expansion.
The main challenge Zomato faces in these markets, according to Ranjan, is affordability. He believes this can be addressed by ensuring the availability of quality ingredients at lower costs.
