Many restaurants in the past few days have joined — #Logout campaign — led by the National Restaurant Association of India (NRAI), on the issue of 'unsustainable deep discounting' by food aggregators.
In order to reach out to partners and concerned over the '#Logout campaign' by restaurant owners on its platform, food delivery service and aggregator, Zomato's founder Deepinder Goyal has asked restaurant owners to opt-out of the #Logout campaign in the interest of the consumers.
Many restaurants in the past few days have joined — #Logout campaign — led by the National Restaurant Association of India (NRAI), on the issue of heavy discounting by food aggregators.
Reaching out to restaurant owners, Deepinder Goyal took to Twitter and urged, "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."
Sharing his thoughts on the restaurant industry’s stand against heavy discounting, Deepinder Goyal in a series of tweets said, "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."
"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 set out to create a company which can create a massive impact on consumers, as well as business owners," he added.
"Somewhere, we have made mistakes and things haven’t 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."
"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.
Zomato's Gold membership allows a consumer to use benefits like — one plus one on food and drinks on dine-in bills — a service which is hugely popular on the food delivery app.
In an appeal to restaurant owners, Zomato founder asked, "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."
Zomato founder also brought in comparisons with China on the per capita income and said, "Take a look at this data — the average price of a delivery order in India is just about the same as that of China. However, per capita income in China is 4.5x as that of India. It's important we bring down prices to find sustainable growth in the food sector in our country."
"What's good for restaurants is good for Zomato. What's good for consumers is good for Zomato. Finding the right balance and product-market fit is the restaurant industry's problem (and that includes us)," Goyal mentioned.
Recently, achieving another milestone, Zomato's food delivery services now available in 500 cities in India. Over the past month, they have launched in 120 cities — bringing the daily average to 4 new launches.
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