Sunday September 22, 2019
Home Lead Story Zomato Urges ...

Zomato Urges Restaurant Owners to Stop #logout Campaign

Meanwhile, the restaurants under the NRAI in several states have further threatened to delist from online dining platforms

0
//
Zomato NRAI
Zomato in a smartphone device. Pixabay

As hundreds of restaurants delisted from online food aggregators” platform across the country, Zomato”s Founder Deepinder Goyal on Saturday requested restaurant owners to stop the #logout campaign.

In a tweetstorm, Goyal said that young entrepreneurs (much like him) in the restaurant industry are feeling the pressure to such an extent that they had to launch such a campaign.

“Zomato Gold has been a major hit, but we understand that bargain hunters have also joined Zomato Gold and they are hurting some segments of the restaurant industry very badly,” Goyal tweeted.

His reaction came after hundreds of restaurants under the umbrella of the National Restaurant Association of India (NRAI) — beginning from Gurugram — challenged the deep discounting practices of online food aggregators like Zomato Gold and Dineout, among others.

Goyal said that somewhere, they have made mistakes and things have not gone as planned.

“This is a wake up call that we need to do 100x more for our restaurant partners than we have done before,” he said.

A Twitter follower reacted: “Good that you have reacted. But don”t think it”s enough. Their movement will only get bigger. Need a quick change in policies to take them into confidence. All the best”.

restaurant
Some restaurants reportedly delisted themselves from “platforms such as Zomato Gold, EazyDiner, Dineout’s Gourmet Passport, Nearbuy, MagicPin among others. Pixabay

According to NRAI President Rahul Singh, the situation for restaurants is aggravated through the anytime, anywhere, any day discounting behaviour by aggregators.

Zomato in an earlier email asked its Gold restaurant partners to serve a notice of 45 days if they wish to opt out.

“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,” Goyal tweeted.

Also Read: YouTube Originals Released Post September 24 to be Free with Ads

He requested restaurant owners to have a collaborative discussion with internet aggregators for finding a sustainable way forward.

“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,” Goyal added.

Meanwhile, the restaurants under the NRAI in several states have further threatened to delist from online dining platforms. (IANS)

Next Story

NRAI Slams Zomato for Extending its “Gold” Programme on its Delivery Platform

It is another instance of Zomato changing the goalpost

0
NRAI, Zomato, Gold
The programme is currently available in 16 cities. Pixabay

The National Restaurant Association of India (NRAI) on Saturday slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt by the online food aggregator to shore up the sinking fortunes of its flagship Gold programme.

Zomato has announced to take its Gold programme where existing and new Zomato Gold members will be able to use Gold for home delivery orders. The programme is currently available in 16 cities.

Zomato Gold was till date available only on eating out at fine-dine restaurants.

“It is another instance of Zomato changing the goalpost. Gold was originally launched as a tool to promote the culture of ‘dining out’, but now it is being extended on deliveries too,” said NRAI, which has been at loggerheads with Zomato regarding the Gold programme over deep discounting practices.

NRAI, Zomato, Gold
The National Restaurant Association of India (NRAI) on Saturday slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt. Pixabay

“Essentially, it is now a programme that merely promotes ‘deep discounts’ on both dine-in and delivery verticals, the cost of which is borne solely by the restaurant partners,” the restaurants’ trade body added.

NRAI also said that it continues to remain firm in its belief that Zomato Gold in its current form is an unacceptable proposition.

“We expressed the same unequivocally to the Zomato team in our recent talks. However, in utter disregard to the viability of the restaurant fraternity, they have chosen to extend the programme further to the delivery vertical as well,” the NRAI said.

“The NRAI remains steadfast in its belief that Zomato Gold in its current form is not acceptable in either dine-in or delivery segment,” Anurag Katriar, President of NRAI, had said in a statement.

Also Read- Certain Flavoured E-Cigarettes Worsen Severity of Diseases Such as Asthma

According to the NRAI, Zomato’s move will be calamitous to the business in the delivery segment and NRAI appeals to all restaurants and cloud kitchen entrepreneurs to stay away from Zomato Gold on delivery.

“Offer right quality at the right price, rather than falling for such discount gimmicks,” NRAI told Zomato, adding that the #ZoGoIsNoGo campaign is on and “we continue to #StayLoggedOut.”

According to Zomato, food delivery was in its early stages when it launched the Gold programme in 2017.

“We thank our restaurant partners for all the feedback, and users for the love they have shown towards Zomato Gold. It is very much these conversations, that led us to put forward a better and bigger Gold programme,” Gaurav Gupta, Co-founder and COO, Zomato, said in a statement.

NRAI, Zomato, Gold
Zomato has announced to take its Gold programme where existing and new Zomato Gold members will be able to use Gold for home delivery orders. Pixabay

The Gold programme drives 25-30 per cent business for its restaurant partners and more and more Gold users (90 per cent) are exploring new restaurants because of the programme.

“It, therefore, makes eminent sense to extend this discovery behaviour to the delivery restaurant base,” said Gupta.

Zomato has always been hellbent to make its contentious Gold programme available for delivery.

“With over 13,000 establishments across 41 cities, Zomato Gold for Delivery brings a wide choice of great restaurants to Zomato Gold members,” added Mohit Gupta, CEO, Delivery, Zomato.

Also Read- Thousands of Students of Australia and Other Asia-Pacific Countries Kick Off Strike for Climate Action

Gold on delivery will offer the second-highest priced item on the order for free, except for combos, MRP items and special dishes.

It will only apply on minimum order values of Rs 300 with discount capped at Rs 300 per order.

New users will pay Rs 1,800 for an annual package that will give them access to dining out and delivery privileges. (IANS)