Food Delivery Discount Service Increases Sales During Restaurant Off-Peak Hours

Though delivery has proven to be a huge market with the likes of UberEats and Grubhub snatching up restaurant dollars, it has also proven to be extremely expensive for operators and, consequently, for consumers.

According to Forbes, Restaurants could pay anywhere between 11% and 45% commission on each order if they sign up for a delivery service. And while restaurants admit that adding these services improve order numbers and total revenue, these rates are huge. And the delivery fees on the consumer side aren’t tiny either.

Two entrepreneurial brothers based in NYC noticed this issue while scouring for promo codes and coupons to lower their delivery order prices. Wondering, ‘why isn’t there some sort of food delivery happy hour’ Mohamed and Sidi Ahmed Merzouk set out to create this type of app.

Gebni is a dynamic pricing app that uses an algorithm to discount dishes based on demand. But instead of tracking demand by location, Gebni tracks demand for certain dishes and ingredients. Discounts fluctuate in real-time and can range from 2% to 35% based on demand. (Tips are not included in the price.)

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The app solves a problem for both restaurants and consumers. Consumers get their favorite meals for less, and restaurants fill their slow periods.  But the brothers are also proud of the role the app plays in food waste reduction.

“From a cultural standpoint, wasting food was always a no-no. Gebni is a more efficient way to price food, it can help move inventory quickly and prevent waste,” says Mohamed Merzouk

Forbes outlines some examples of the discounts users see:

For example, Numero 28 Pizzaria in the East Village recently offered $5 to $6 off various pizzas; a mozzarella and soppressata filled calzone with salad for $11.14, a $6.30 discount. Chickpea's chicken kebab with chipolte hummus had a $2.91 discount, the final cost, $5.54. The Lamb Pasanda dish at Mughlai Indian Cuisine had a $4.85 discount and Petite Abeille’s Frittata Ardennaise had a $5.18 discount.

Gebni is not public about their commision fee, but with more than 700 restaurants participating in the Manhattan, Brooklyn, and Queens areas (and expansion into the Bronx planned for the near future) it must not be as detrimental as the 11-45% commission fees restaurants are seeing from delivery services. It is important to note that Gebni is not a delivery service. They deal primarily with restaurants that already have in-house delivery systems or use a 3rd party such as Relay and work instead as a price optimization solution.

Check out this Q&A where the founders explain the need for the app at Forbes.