The Weekend Leader - End deep discounts, NRAI tells online food aggregators

End deep discounts, NRAI tells online food aggregators

New Delhi


In a bid to stop "unethical" deep discounting practices of online food aggregators amid nationwide #logout campaign, the National Restaurant Association of India (NRAI) on Tuesday told the platforms to realign their offerings to create a restaurant-friendly ecosystem, thus ending freebies and detox the consumers from discount addiction.

In a meeting with the five top players -- Zomato, EazyDiner, Dineout, Magicpin and Nearbuy -- here, the industry body discussed how technology has a key role to play in driving engagement and discovery for retailers versus deep discounting. 

"It was decided that all aggregators will rejig their features to detox the consumers from the addiction of deep discounts that has crippled the industry," the association said in a statement. 

The meeting came after thousands of restaurants delisted from online food aggregators' platforms across the country. The Federation of Hotel and Restaurant Associations of India (FHRAI) on Monday joined the chorus, calling for a review of the agreement of online food apps with restaurants and threatening nationwide protests. 

Anshoo Sharma, Co-Founder & CEO, magicpin, said in a statement that they had a very productive discussion with the key members of NRAI.

"The NRAI members included President Rahul Singh (Beer Cafe), Priyank Sukhija (BoomBox, Lazeez Affaire, Flying Saucer and more), Vikrant Batra (Cafe Delhi Heights) and Nitin Saluja (Chaayos). We agreed on how technology has a key role to play in driving engagement and discovery for retailers versus deep discounting,' said Sharma.

magicpin said it works at a base margin of 10 per cent and allows partners to top-up anywhere from Rs 2,000 to Rs 20 Lakh as per their marketing needs for the month while delivering guaranteed RoIs to them. 

"We are fully supportive of NRAI's cause and are looking forward to working together to create sustainable impact for its members through the use of technology," Sharma added.

According to the FHRAI, restaurants are willing to do business with online food apps but the current policies need to be reconsidered.

"Restaurants are constantly but subtly threatened to participate in deep discounting schemes without respite through the year with one scheme getting replaced by another. 

"Our members are neither given an option nor the opportunity to agree nor are they even consulted. Promises made while launching any new scheme is almost always broken by changing the rules itself," said SK Jaiswal, Vice President of FHRAI. 

Zomato's Founder Deepinder Goyal had also requested restaurant owners to stop the #logout campaign.

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