Food order management platform Foodbomb has recently launched BombPay, promoted as Australia’s first wholesale marketplace buy now pay later (BNPL) product, specifically tailored to the needs of the hospitality industry.
Designed to give restaurant and cafe owners more flexibility when it comes to their supplier payments, BompPay is hoped to open up cash-flow and eliminate the “business-crippling” effects of cash-on-delivery (COD).
Through Foodbomb, BompPay users are given 21 days credit to pay their wholesale suppliers at no extra cost to their business.
“This is the first time venues have been able to use a BNPL service in a wholesale capacity across numerous suppliers. Suppliers in return are paid immediately,” says the company.
“While the product isn’t a direct result of the pressures of Covid, recent conversations within the Foodbomb network have revealed that just under 40% of [surveyed] restaurants, cafes and food venues feel that moving to COD has negatively affected their cash flow.
“When asked how their business was performing post lockdown, almost two thirds also said that they were yet to return to full-service operations. Half said that they expected to be back to normal in the next three months.”
Foodbomb founder and CEO Paul Tory adds: “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.
“Flash forward to 2022 and most suppliers are now requesting COD 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.
“We launched BombPay to help our partners get back on their feet as quickly as possible.”
Foodbomb also wanted to eliminate what Mr Tory says is “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”.
“One venue alone can easily have 15 suppliers all requiring different payment and ordering terms,” he says.
“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.”
