Daily Newsletter

22 September 2023

Daily Newsletter

22 September 2023

Zomato unveils new feature to help users tip restaurant kitchen staff

Tips provided by customers are directly credited to restaurants, after tax deductions.

Soumya Sharma September 22 2023

India-based restaurant aggregator and food delivery company Zomato has launched a new feature on its delivery platform.

The new feature enables customers to tip the restaurant’s kitchen staff.

According to a blog post by Zomato, the ‘Tips for the kitchen staff’ feature will allow customers to place orders through the Zomato app to show appreciation for the kitchen staff, including chefs, cleaning staff and helpers.

After getting their food delivered, customers will get an option to rate the order before being asked if they would like to provide a tip to the restaurant’s kitchen staff.

Customers can even access the new tip feature from the live order tracking page on the app after they have placed their orders.

Zomato said its new feature will allow customers to tip the kitchen staff in percentage (%) of their total order value.

Customers’ tips for the staff can range between 3% and 10% of the total order value.

If customers do not wish to choose the set percentage, they can also enter their preferred amount directly.

Every time a customer provides a tip, it is directly credited to the restaurant after making required tax deductions, if applicable. The restaurants can then distribute the tip among their staff members.

Zomato’s restaurant partners can keep track of the tip amount in their weekly payouts and account statements using the merchant app, as well as the web dashboard.

Zomato founder and CEO Deepinder Goyal also shared a post on X, previously known as Twitter, providing an update about the new feature: “I'm super proud to introduce this new feature on the @zomato app - 'Tips for Kitchen Staff'. Now you can show your appreciation for the chef and staff who helped cook your meal - and it goes without saying, 100% of the tip amount goes to the restaurant partners for distribution among their staff.”

Full-service restaurant (FSR) was the largest profit sector channel in Germany in 2022

Per GlobalData, the Germany foodservice profit sector is expected to grow at a CAGR of >11% during 2022-2027. FSR was the largest foodservice profit sector channel in 2022, with a share of 26.5%, reflecting the popularity of traditional fine-dining experiences among German consumers. Despite the highly fragmented market, pub, club & bar channel is set to record the highest growth during 2022–27, triggered by an increase in transactions and average transaction value.

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