- As part of a #Logout campaign, about 1200 restaurants delisted themselves in Mumbai, Delhi, Bengaluru, Kolkata, Goa, Pune, and Vadodara.
- More than 300 restaurants just in Gurgaon had earlier said that they are logging out of these offer driven paid membership programs such as EazyDiner (Prime), MagicPin, Zomato (Gold).
Friday saw a surge in the face-off between the restaurant companies and aggregators with more than 1,200 restaurants in several major Indian cities delisting themselves from the dine-in programs of services like Zomato, which said the exits could be “anti-competitive and illegal”.
The situation is now aggravated through the anytime, anywhere, any-day discounting behavior by aggregators. So now restaurants have come together to detox consumers from discount addiction,” NRAI president Rahul Singh was quoted as saying.
NBB yesterday reported how the restaurants in Gurgaon are removing themselves from different food aggregator apps and their loyalty programs such as Zomato Gold, EazyDiner Prime, Dineout, Nearby, and Magicpin. This is seen as clear unrest between the Indian restaurant industry and India’s reservation and discounted membership platforms.
As part of a #Logout campaign, about 1200 restaurants in Mumbai, Delhi, Bengaluru, Kolkata, Goa, Pune and Vadodara entered platforms including Zomato, EazyDiner, Nearbuy, MagicPin and Gourmet Passport, claiming their company models were hurt by “unsustainable” profound discount provided by aggregators and table booking services.
The #Logout movement that began two days ago in Gurgaon has turned into a nationwide one that shows just how restaurants across the spectrum suffered from the deep-discount epidemic,” said Rahul Singh, President of the National Restaurant Association of India (NRAI).
Meanwhile, Zomato challenged the #Logout campaign and some of the suggestions being regarded by industry organizations in a blog post directed to restaurants. “We have observed active discussions, among others, on price-fixing and restricting the provision of services, which could represent cartelization. We urge you to be cautious and not engage in any of these discussions, “it said.
Table reservation firm Dineout co-founder and chief executive Ankit Mehrotra said in a declaration: “Dineout works closely with all its restaurant partners and NRAI to create not only a more feasible consumer-facing platform where guests can explore the correct restaurants and hotels around them, but also comprehend the technological requirements of the restaurant and address the same with the various B2B modules to optimize their revenues and costs better and improve their bottom line.”.
Zomato has asked for a 45 days’ notice in emails sent to restaurant partners if they plan to leave and pay a sign-up fee per restaurant if they want to join back.
The food-tech ecosystem of India has been gaining popularity and inviting the interest of investors especially now that more people are eating out and ordering home. This has led to a revolution with more companies offering discounts and benefits tied to dine-in and delivery of food.
It seems coupon and cashback lovers are going to be disheartened by this move by restaurants!