Restaurants Must Thrive for Delivery Apps to Survive

Baemin's Drive for 'Win-Win Management'

From January to September this year, domestic dining-out card payment amounts decreased by 10% compared to the same period last year, while delivery payment amounts increased by 75.4%. This is the situation faced by the domestic dining industry that has weathered the COVID-19 pandemic. Although sales at dining establishments declined, the significant increase in delivery payments partially offset the losses of dining businesses. As a result, the role of delivery applications (apps) has grown, and in response, various delivery apps are introducing diverse support measures to promote mutual growth with restaurant owners.

Woowa Brothers, the operator of 'Baedal Minjok (Baemin),' announced this year the industry's largest mutual growth plan worth approximately 60 billion KRW for small business owners as the COVID-19 situation intensified the management difficulties of restaurants. Despite operating at a loss last year, this support plan was introduced based on the recognition that Baemin’s sustainability depends on the survival of its partner restaurants. First, in March and April, Woowa Brothers refunded half of the advertising fees to self-employed users of Baemin’s subscription advertising product 'Ultracall.' The refunded amount reached 41.3 billion KRW over two months. Additionally, about 5 billion KRW will be supported by the end of the year as interest on small business policy fund loans.

Woowa Brothers’ mutual growth management continued in the second half of the year. In August, as COVID-19 cases surged again, they provided an additional 11 billion KRW in support by refunding 50% of Ultracall advertising fees, Open List commissions, and Baemin Riders commissions to small business owners with annual sales under 300 million KRW. They also extended the waiver of brokerage fees for packaging order services until the end of the year and decided to cover 2.7 billion KRW in external payment fees paid by restaurants to card companies or electronic payment agencies for orders placed through packaging orders in the form of Biz Points.

Yogiyo, the second-largest delivery app, is also engaging in various mutual growth activities. Since March, Yogiyo has been hosting 'Yogiyo Class,' a partner mutual growth education program that provides content to help restaurant owners shorten cooking times and enhance delivery service competitiveness. Yogiyo has continued its mutual growth efforts by maintaining policies such as abolishing commissions under 10,000 KRW since last year. They also operate 'Yogiyo Alttul Shopping,' where necessary delivery service supplies can be purchased at up to half price. A Woowa Brothers representative said, "As a delivery platform company, Baemin’s sustainability depends on the prosperity of restaurants," adding, "We will continue mutual growth activities to support restaurants struggling due to COVID-19."

This content was produced with the assistance of AI translation services.