New Delhi: Indian Hotel & Restaurant Association that represents the interests of over 8,000 hotel and restaurant owners in Maharashtra said it is discouraging members to opt for Zomato’s Gold on delivery programme, in what can be seen as a fresh revolt against the food aggregator.
Members of the association said concerns around lack of profitability for restaurants, and proliferation of unauthorized restaurants on the food delivery and listings platform has prompted them to take such a measure.
“We are not promoting Gold on delivery, we are telling all our members all over the state of Maharashtra that they should not enrol themselves into this (Zomato Gold on delivery), and if they have, they should discontinue," Santosh Shetty, president, Indian Hotel & Restaurant Association told Mint. "Gold (on delivery) only benefits Zomato and no one else."
The news was first reported by The Economic Times newspaper.
Launched in September this year, Zomato’s Gold on delivery, is an extension of the aggregator’s existing Gold on dining programme. Gold on delivery offers complimentary items to diners on their home-delivery orders. When it was rolled out, Zomato had 13,000 restaurant partners who had signed up to be part of the Gold on delivery program.
An email query sent to Zomato did not elicit a response at the time of publishing this article.
Zomato's Gold programme has been a point of contention among restaurant associations, including the National Restaurant Association of India (NRAI), that have complained that its Gold on dine-in was hurting footfalls at eateries and promoting steep discounts on eating out.
In August, a few hundred restaurants logged out of dining and membership driven platforms such as Zomato Gold, and others to express their dissatisfaction with the offers doled out by such platforms. The issue was also raised with the likes of Swiggy. As a result, representatives of Zomato, and Swiggy have been meeting with the top members of the NRAI to mend their differences and reach a more level playing field. Once Zomato on delivery was rolled out, several associations including the NRAI expressed their unhappiness over the programme that they claim will continue to promote discounts.