|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Deep discounting by online food aggregators comes under fire with NRAI drive
|
|
Tuesday, 20 August, 2019, 08 : 00 AM [IST]
|
|
Ashwani Maindola, New Delhi
|
Deep discounting and predatory pricing by online food aggregators have come under fire as NRAI has launched #LogOut campaign, a drive opposing these practices. These practices are distorting the vibrant marketplace, according to the National Restaurant Association of India.
Standalone fine-dine restaurant owners now have the support of the association, which took to Twitter recently to state that the objective of the campaign was to detox consumers from discount addiction.
“We are here to provide you a wholesome experience through a sustainable business environment. Dineout, Eazydiner, Magicpin, NearBuy, Zomato, etc. are resorting to unjust practices and hurting our business. We have no option but to #LogOut as a mark of our protest,” it tweeted.
Overall, 300 restaurants in Delhi NCR reported observed the campaign. However, NRAI has not revealed the actual numbers of restaurants taking part in the campaign and opting out so far.
Speaking on the subject, Brijesh Pande, chief executive officer, D51 Bar and Kitchen, said, “We are supporting the protest and have opted out from all the offers and discounts that food aggregators are offering (for instance, Zomato Gold). The #Logout is the need of the hour, and I am glad that NRAI has taken it seriously.”
“Many food aggregators like Zomato, Nearbuy, Swiggy, EazyDinner, etc are giving away huge discounts to the patrons at their wish, which, in turn, is impacting our business negatively,” he added.
“Through heavy discounts, food aggregators are getting restaurants on board, and inspiring more standalone, portraying that the footfall will increase by way of discounting,” Pande said.
He added that through Zomato Gold, Zomato takes a monthly or yearly fee from the customers. This allows them a database of 4,000-plus restaurants in Mumbai itself at their disposal, and restaurants here end up discounting their products. Pande stated, “Every individual restaurateur could do the same at their premises too.”
Meanwhile, Zomato stated that reports that 1,200 restaurants opted out of Zomato Gold were wrong, as about 65 restaurants were delisted from the platform, which was just one per cent of the restaurant partner base of Gold.
Commenting on the #Logout campaign by Gold users in a letter, Deepinder Goyal, founder and chief executive officer, Zomato, said, “I am sad that young entrepreneurs (much like me) in the restaurant industry are feeling the pressure to such an extent that they had to launch such a campaign.”
“We are committed to work with the industry and make modifications to Zomato Gold, which will result in a win win situation for restaurants and consumers. Just like last year, when we changed some rules around Gold after hearing about the concerns of the restaurant community,” he added.
“In the interest of consumers, we request restaurant owners to stop the #LogOut campaign, and have a collaborative discussion with Internet aggregators for finding a sustainable way forward,” Goyal said.
“I would also want to urge the restaurant industry to proactively look for ways to reduce operating costs, so that eating out becomes more affordable for consumers - our only objective here is to drive the growth of the restaurant industry,” he added.
|
|
|
|
|
|
|
|
|
|