Hospitality wholesale ordering platform Foodbomb has introduced a buy-now-pay-later (BNPL) product to help restaurateurs and cafe owners manage supplier payments.
Foodbomb’s solution, BompPay, gives users 21-days of credit to pay wholesale suppliers without additional cost. Suppliers are paid immediately.
Founder and CEO Paul Tory said that recent discussions with clients revealed that more than 40% of venues feel a recent shift to cash-on-delivery had negatively affected cash flow. Post lockdown, nearly two -thirds said they were yet to return to full service operations.
“It’s no secret the hospitality industry has been under immense pressure the last two years. Prior to the pandemic, credit was a widely accepted form of payment for most suppliers. But when venues had to shut, many debts went unpaid, crushing the wholesale industry,” he said.
“Flash forward to 2022 and most suppliers are now requesting cash-on-delivery instead to safeguard themselves. While venues are excited to reopen, to do so successfully they need staff and food to serve; the cash outlay on both when not yet operational is huge. They need more flexibility.
Tory said he hopes BombPay will help Foodbomb’s more than 3000 clients get back on their feet faster.
“We also wanted to eliminate one of the industry’s most time-consuming and redundant practices, which is the impracticalities of having several suppliers, each with unique needs, on the go at the same time,” he said.
“One venue alone can easily have 15 suppliers all requiring different payment and ordering terms. By streamlining this side of their operations, users are able to not only save time and resources, but can focus on what they do best – providing wonderful dining experiences. Suppliers can also reach a wider range of venues with a stronger degree of confidence.”
Foodbomb, which launched in 2017, currently operates in NSW, Victoria and Queensland, operating as a marketplace offering 19 categories of product from more than 100 suppliers.
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