They say there is no such thing as a free lunch. Historically, a free lunch is a sales enticement that offers a meal at no cost in order to attract customers and increase revenues from other offerings. It was a tradition once common in saloons in many places in the United States, with the phrase appearing in U.S. literature from about 1870 to the 1920s. These establishments included a “free” lunch, varying from rudimentary to quite elaborate, with the purchase of at least one drink. These free lunches were typically worth far more than the price of a single drink. The saloon-keeper relied on the expectation that most customers would buy more than one drink, and that the practice would build patronage for other times of day. Free food or drink is sometimes supplied in contemporary times, often by gambling establishments such as casinos. The saying “there ain’t no such thing as a free lunch” refers to this custom, meaning that things which appear to be free are always paid for in some way.
In India, in recent times, with the advent of smartphones and a internet connection, a lot of food delivery apps are coming up. Especially in Bangalore, being the IT capital of the country, there is a plethora of startups concerning easy to access food delivery apps for the on-the-go IT company man. Primarily, these startups are founded by out of college bored of job men and women who somehow convince a VC to invest in their company. The modus operandi is usually one of two things.
- They open up as a restaurant aggregator like FoodPanda or Zomato etc. If you were to go to the restaurant directly or order directly through their phone number, let us say you pay ₹ 100 for a meal. However, if you order using such apps, the price is marked up by usually 20%, effectively making the price ₹ 120 and on the top of that they offer a discount of 15% finally bringing down the price to ₹ 102. The difference of ₹ 2 is what makes the profit.
- They open up their own cloud kitchens in the busiest business hotspots around the city and supply orders directly through their. These type of apps are not mediators but a restaurant of their own. Example – FreshMenu, FAASOS, MOJO Pizza.
So where does the concept of free lunch come within all this? Well for one, the businesses do need to promote their product and build a customer base. So at the expense of the VC money, they offer attractive kickbacks like 100% cashback and First Order Free which gains a lot of customers in early days. It is not like only the small players are doing it. Google launched Areo in April this year and offered ₹ 200 off on any order through three of its partnered apps (Box8, FreshMenu, FAASOS). I remember the “first order only” frenzy back in my college hostel, a same poor chap had to come everytime someone placed an order through the app. One of my friends even asked the delivery boy to give his phone so that he can order through his phone number and get another free meal.
It can’t all be true now can it? After all there is no such thing as a free lunch. You might think that offering free food initially will gain loyal customers, but that is really not the case. Save four or five big scale players like FoodPanda or Swiggy, most other such start ups have failed, ever heard of MomoE or TinyOwl? Where did they go wrong? Well first of all, the food quality wasn’t up to the mark and items were criminally overpriced. Why would I want to eat half a plate of Gobhi Manchurian for ₹ 300 when I can have a stomach full of Hyderabadi Chicken Biryani and a side of chicken kababs for ₹ 200. Secondly, the competition wasn’t healthy. 90% of these startups are in the five largest cities of India, most of them aggregated in Mumbai, Bangalore and Delhi. You wouldn’t find such apps in say, Lucknow or Indore. Even within Bangalore, the service is highly localized. My friend was standing 4 km away from the hostel on his way back and he wanted to eat pizza, so he opened the MOJO Pizza app (with ₹ 250 cashback mind you) so that the pizza will be there when he gets home but he immediately got a notification that “Sorry we don’t serve in this area”. In the end, he had to come back and order from the hostel itself for the service to work.
In a nutshell, it can be said that we enjoyed a few free lunches at the expense of the rich VC money, with no immediate repercussions. It remains to be seen what will be the future of large players now and how well can a new player adopt in an industry where competition is cut throat and margin is low not to mention the varying tastes of people across cities, towns and even localities.
So what is your favorite food and what will be your reaction if some rich suited up guy offers it to you for free? Let me know in the comments section. If you are not from India, please tell me how the food start up scene is in your country in the comments section.
Your well written and imformative aricle has aroused my curiosity on the food start up business in Germany.
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So you’re from Germany?
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No SG, I’m from England and live in Germany
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That’s interesting to know.
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I left England 50 years ago to live for many years in South America (many of my stories generate from there) and Europe. The terrible thing is (don’t laugh) I’m still terribly English, Manchester accent included.
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Hehe, that’s quite charming actually, and your stories are a treat Sir, wish to read a lot more.
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Thankyou. I’ve also written a book about my 25 years of adventures in South America. It’s called “If I hadn’t been shot, I’d be dead my now.” and it’s gathering dust on a London publisher’s desk at present.
By the way, I hope you didn’t mind my teasing comment on your ink article.
“…and never the twain shall meet.”
The first line is
“East is east and west is west…”
By Rudyard Kipling. I very much doubt Kipling’s poetry was in your corriculum. No offence meant.
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As a matter of fact, Sir Kipling’s poetry was in our curriculum, but I was just a lousy student. That brings me to another question, how come many of the Britishers who were born in India went on to have extremely successful literary careers? E.g.- George Orwell, Rudyard Kipling, Jim Corbette etc.
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I doubt very much that you were a lousy student?
India gave them inspiration and another outlook on life other than that of Victorian/Edwardian England. I left school quite uneducated when I was fifteen but later I read and have re read the three authors you mention. Kipling’s Kim was – still is, a favourite and by chance my life in many ways has run parallel to his.
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Trust me, I was a lousy student and still am. 😀
It is true what you say about India, truly a marvelous place.
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Having never visited, I’ll take your word for it
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From England but lived in US for 29 years. Love making my own Indian Curry.
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Hahaha isn’t it just awesome?
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Sure is.
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In India people not just run after free lunch, they could run for anything free. There eyes are always searching for such opportunitues.Only an incredible indian could do that.😂
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Hahaha that’s very true. Your comment reminded me of the 2014 elections when some political parties were distributing chicken and alcohol for votes. 😀 But I am sure it was not only in 2014 but also every previous election ever.
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Ya, you could have made ur topic more wider by talking about all the free advertising, not just food.But, I knw foodies main focus is always food.😁
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Haha I took “free lunch” a bit too literally. 😀
Seriously though, the focus was supposed to be on the food startup scene in India, because you know, business stuff and why I am supposed to know such things. 😉
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Hi! Thanks for visiting my blog recently. I read and like/comment and it takes me a while to get around. Infact I do have similar points highlighted on my blog, just in small doses.
Btw, Indians are just a little happier, a little freer, to express what they feel about the free lunch or otherwise.
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According to me In India one runs after free stuff, be it anything. Apart from the business stuff, it’s also used by the government that attract students from the economically weaker section, they offer mid day meals so they have a reason to stay in school and not excuse themselves halfway through the day and go home for “LUNCH”.
Also I live in India
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Btw your posts are great
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I have seen so many sales, where you could notice that the original prices were increased (another pricetag were stuck that if you remove, you can see the original pricetag) than with the discount you had to pay cc the original prices.
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Lemme take a different approach to your post and doesn’t mean I’m in toes with you lol. 😀 You were spot on. You see, Freebies/discounts are generally associated to certain factors which the human brain has a strong stimuli, such as fear, scarcity, irrational, loss aversions. The human brain has accumulated those subconsciously from the environment we have raised , experiences.
Say like, when we get fear , we tend to or compelled to buy the things which we think that can overcome the fear, irrespective of we need that or not . The brain then tends to secrets the dopamine, which gives a soothing , calm & pleasurable feelings and act as an antibody to the above stimuli factors.
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The whole human life is based on dopamine and endorphins if you think about it. That’s a very interesting perspective you have put here Neal.
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Lol you always catch me off guard with your perspective ☺️
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very informative.Research done well.
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I wouldn’t mind about the free meal too much. I am not too fussy about food, plus, I do enjoy my own cooking😀
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That’s great. But do they entice people into buying their food like this in your country?
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I always want to comment but everytime i leave it for the post where i can also tell my views.But i think i m still immature and kiddish n they are way out of my scope to tell my views.But what i can tell is u are surely not a lousy student and this was informative for me.Thanku😊
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Come on now Simran, you’re never immature to have an opinion and voice it. You can say anything you like really, you can tell about your city and how the restaurant business (online or otherwise) is there, or something of that note, or you can ask about a topic you feel I have neglected in my write up, you know, that way both of us could learn something new.
As far as being a lousy student is concerned, you’ll change your opinion once you get to really know me. 😀
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Lol..Maybe you are right.But i am kind of meek and always had an issue in doing that.But i will try to do that in future.
And about lousy thing , i wont agree on that😋 .Rather nobody would ,after reading your posts.If you are calling urself lousy just because of the scores u used to get ,that doesnt count.
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For me marks have never mattered, so that is not the reason.
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Then its ok.and Right now i am in my hometown which is a small one.Here online delivery system is there but still to develop.There is nothing like zomato and all such apps.They would show that “no service available in your area ” thing.
When i read free lunch heading i thought you are going to talk about “free meals offered at temples”.But this was a different perspective and i will try to know about it more now .☺
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Judging by your name it seems like you’re a Sikh, so it is only natural for you to think about Langar when someone mentions Free Lunch. That’s a very noble thing to do actually, I appreciate and love the fact that people are feeding other hungry people without any ulterior motive. Yet, there is not much to write about that, for me.
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Yes, i am a Sikh and Langar is exactly what i thought.Thats okay cz this was something new to write about🙂👍
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Haha that’s nice, by the way I have left a message on your Contact page, you read it yet?
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Ya , i got a mail and have already replied to it.
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You are lucky to be in a town not yet effected by greedy giant commercial companies my dear. Free lunches are offered out of greed by these people, quite opposite the spirit of small town temples.
I can tell that you are a sweetheart and an awesome person who can be whoever she wants to be
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Yes, you are right about my town being away from all this effect.Thanku so much for your words.That means a lot😊😇
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I too order food from such apps especially Zomato. Quiet informative
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I’d definitely take that free lunch or the maximum I can get for free but if I don’t like it, I probably wouldn’t try it again.
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There’s the thrifty spirit. 😀
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Hello there.
I have nominated you for few blogger awards.
Do checkout my latest blog.
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Love your post – they’re so interesting 👏🏻
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Interesting post 🙂 I don’t live in India, but in the U.S. My favorite type of food is Mexican and meat, potatoes, and salads. If someone offered me free food, I would wonder what the catch is! Nothing is free – except love & kindness.
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How true. Now a days almost everyone has an ulterior motive.
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Talking about free meals, it depends on who is offering it? If it’s some new start up, I ignore it. If it’s some we’ll know brand, I might consider it. Usually I don’t order food online, I just call the restaurant for home delivery
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The thing is, most these offers are by start ups, once they’re big enough, they don’t need us anymore so they stop giving kickbacks
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I find your post fascinating and illuminating…I really like that you explained the origins of the theme/expression–I’d heard it, but was clueless as to it’s foundation. And, unfamiliar with contemporary/parallel business practices, I can’t answer your question. Great post! Thanks for sharing 🙂
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Interesting post! Keep it up! 😊
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Interesting to know how other countries can be so similar. I live in the US and the big thing is grubhub in my area. I used to use it a lot, mostly for convenience but with extra cost added to food plus the ridiculous delivery fees it wasn’t really worth it.
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That’s exactly their Modus Operandi. They lure in customers by giving away kickbacks initially at the expense of the investor’s money and when the money dries up, people leave because the products and services aren’t worth the marked up cost.
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I guess there isn’t a such thing as a free lunch 🙄
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I’m not sure how applicable the term is, given difference in locations, but the free lunch here has so far fought off attacks by conservatives for no other reason than meanness. I’m referring to the Supplemental Nutrition Assistance Program, food stamps.
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Oops, forgot, thank you for liking my silly poem!
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Nice very immpressive and informative
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Interesting essay. I’m in Indiana, US. I’m rather skeptical when it comes to accepting anything ‘free’ from a person(s) I don’t know. I suppose that’s because after years of being in the marketplace myself, I know that if what you are offering is up to snuff, customers/clients will happily pay for it, and if wanted bad [pain point] enough, anything you are charging for it.
Other…I’m a vegetarian, and prefer to cook in my own nice and tidy kitchen!
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That’s an interesting and mature perspective.
Being a vegetarian in the US is a pain. I live in a country where more than 50% of the population is vegetarian. Even I don’t eat meat much, in fact I haven’t had a non veg meal in 3 months or so. As such, it’s easy to find good veg meals anywhere here.
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“Free lunch” offers should be met with marshmallow test resistance… it’s better than getting hung up on the many strings attached!
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I do not know if the marsh mallow test resistance, care to elaborate a bit? Thanks. 🙂
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Hi I’m still new around here ,like how do I get more readers
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How would I know?
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Aii
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It’s very informative, keep up the good work!
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Thank you Kalyan. 🙂
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Nobody gives guys free lunch coz we tend to take advantage n eat a lot..I guess a lot of girls get a free lunch..varied reasons.
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Free Lunch? I’ll take two. ha ha
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