Cloud kitchens have revolutionized the food industry, offering restaurants a cost-effective way to operate without a dine-in space. Increasing cloud kitchen profits, high commission fees from platforms like Zomato and Swiggy eat into profits, making it challenging to sustain margins.
If you’re wondering how to reduce cloud kitchen delivery costs, you’re not alone. Many cloud kitchen operators struggle with rising platform commissions, which can go up to 30% per order. This Artical, explores effective strategies to cut delivery commissions and maximize your revenue while still leveraging these platforms for growth.
Why Reducing Delivery Costs Matters for Cloud Kitchens
High delivery commissions can:
✔ Reduce profit margins, making it difficult to scale.
✔ Increase dependency on aggregators like Zomato and Swiggy.
✔ Limit brand control, affecting customer relationships.
✔ Restrict reinvestment, preventing marketing or menu improvements.
To stay profitable, you need a smart mix of aggregator platforms and direct sales strategies. Let’s explore how you can achieve this.
Strategies to Reduce Cloud Kitchen Delivery Costs
1. Negotiate Commissions with Zomato & Swiggy
Most cloud kitchen owners don’t realize that commission rates are negotiable. Here’s how you can lower them:
✔ Leverage your order volume – Higher sales mean stronger negotiation power.
✔ Ask for an exclusive deal – Platforms may lower commissions in exchange for exclusivity.
✔ Show competitor rates – If another platform offers a better deal, use it as leverage.
✔ Highlight your brand’s value – Strong branding and good ratings help in negotiations.
📝 Pro Tip: If you’re a new cloud kitchen, start with a lower commission agreement and renegotiate once you hit a consistent order volume.
2. Build Your Own Website & Ordering System
Instead of relying entirely on food aggregators, create your own website or app for direct orders. Benefits include:
✔ Zero commission fees, keeping all profits.
✔ Better customer data collection for remarketing.
✔ More control over branding, offers, and pricing.
To encourage direct orders, offer:
✔ Exclusive discounts on your website.
✔ Loyalty programs for repeat customers.
✔ Free delivery on first-time orders.
Platforms to build an ordering system:
- Dineout, Thrive, DotPe – Affordable commission-free solutions.
- Zomato Hyperpure & Swiggy Minis – Lower-cost options compared to full aggregators.
3. Optimize Menu Pricing for Higher Margins
Adjust your menu pricing strategically:
✔ Increase prices on aggregators to compensate for commissions.
✔ Offer combo deals with better margins.
✔ Highlight high-margin items on the menu.
💡 Example: If Swiggy charges 30% commission, raise your menu prices on Swiggy by 15-20% to balance costs while keeping direct-order prices lower.
4. Use Third-Party Logistics for Delivery
Instead of relying on Zomato & Swiggy’s logistics, use services like:
✔ Dunzo – For hyperlocal deliveries.
✔ Shadowfax & WeFast – Cost-effective fleet management.
✔ Pidge – On-demand delivery without high commissions.
🚀 Result: Lower delivery costs while keeping control over branding and customer experience.
Read Also :- Proven Strategies to Reduce Investment and Manpower Costs in Cloud Kitchens
Smart Operations Management: How to Boost Restaurant Profitability
5. Focus on Marketing & Branding
Build brand awareness outside of Zomato & Swiggy:
✔ Run Social Media Ads – Target customers directly on Instagram, Facebook & Google.
✔ Influencer Collaborations – Partner with local food bloggers to boost visibility.
✔ Email & WhatsApp Marketing – Stay connected with your customers.
📝 Case Study: Many cloud kitchens reduce delivery app dependency by 20-30% using a strong Instagram & Google Ads strategy for direct orders.
6. Offer Subscription & Prepaid Meal Plans
A great way to cut costs and secure revenue is by offering:
✔ Weekly/monthly meal plans with discounts.
✔ Bulk ordering options for offices & events.
✔ Prepaid meal credits that encourage repeat purchases.
🌟 Example: If you sell 50 prepaid meals upfront, you reduce dependency on high-commission platforms and improve cash flow.
7. Partner with Local Businesses for Direct Sales
Collaborate with:
✔ Co-working spaces – Set up meal plans for their employees.
✔ Gyms & Fitness Centers – Sell healthy meal plans.
✔ Schools & Colleges – Offer lunch delivery services.
💡 Strategy: Use offline tie-ups to drive direct sales and reduce aggregator costs.
Read Also : Mastering Online Food Delivery: Strategies for Restaurant Success
Effective In-App Marketing Strategies for Food Delivery Businesses
Conclusion: Maximize Cloud Kitchen Profits Today
Reducing cloud kitchen delivery costs is essential for long-term success. While Zomato & Swiggy bring visibility, over-reliance on these platforms can eat into your profits. The key is to negotiate commissions, optimize pricing, build a direct ordering system, and focus on brand marketing.
🚀 Take Action Now:
✔ Start negotiating commissions with food aggregators.
✔ Set up a website for direct orders.
✔ Use third-party logistics for lower delivery costs.
✔ Build a strong digital marketing presence to attract direct customers.
By implementing these strategies, your cloud kitchen can increase profits by 30-50% while maintaining growth on online platforms.
FAQ’s
Q1. How much commission does Zomato & Swiggy charge cloud kitchens?
Typically, commissions range from 15% to 30% per order, depending on order volume, location, and exclusivity agreements.
Q2. Can I remove my restaurant from Zomato or Swiggy?
Yes, but it’s not advisable. Instead, reduce dependency by driving direct orders through your own website and marketing.
Q3. What’s the best way to encourage direct orders?
Offer discounts, loyalty rewards, and exclusive deals on your own website to attract customers away from delivery apps.
Q4. How can I negotiate lower commissions with Swiggy and Zomato?
Showcase your order volume, positive ratings, and exclusivity potential to get a better commission deal.
Q5. What’s the best alternative to Swiggy and Zomato for food deliveries?
Platforms like Dunzo, Thrive, DotPe, and WeFast provide lower-cost delivery solutions without high commissions.
