(Photo: Bloomberg)
(Photo: Bloomberg)

Zomato says open to resolving issues with restaurants stung by deep discounting

  • Less than 1% of the restaurant partner base of Gold are supporting the challenges raised by National Restaurant Association of India earlier this week, says Zomato
  • On Thursday, 300 restaurants in Gurgaon said they would opt out of a plethora of membership-driven dining apps

New Delhi: Two days after some restaurants in Gurgaon de-listed from five food discovery and membership platforms, online food ordering and food discovery platform Zomato on Friday said it is open to conversations to resolving any issues that food chains using its platforms might have.

"We have still not received any invitation for a discussion on this topic, but we remain open to any conversations to resolve ongoing issues," a company spokesperson said in a statement on Friday.

On Thursday, 300 restaurants in Gurgaon said they would pull out of reservation- and membership-driven dining apps, including EazyDiner (Prime), Zomato Gold, Dineout, nearbuy and magicpin in a bid to protest against discounts being offered by such platforms.

The move, led by the National Restaurant Association of India (NRAI), is largely aimed to end steep discounting by such platforms, which the NRAI says is hurting business.

#Logout is what restaurants were using to silently mark their protest against membership programmes that allow diners to indulge in bargains such as “one plus one" on drinks and food on their in-restaurant bills.

On Thursday the NRAI said four other aggregators had reached out to the association willing to resolve the issue as early as next week. These include magicpin, EazyDiner, nearbuy, and Dineout.

However, Zomato which is a key player in the country's online food delivery and search ecosystem has now agreed to initiate conversations with members of the NRAI.

Less than 1% of the restaurant partner base of Gold has supported the challenges raised by the NRAI earlier this week, Zomato added.

The company also added that it was engaged in active discussions with restaurant partners to discuss and resolve any issues that they might have.

Zomato said it has constantly been in touch with the restaurant industry and discussed feedback regarding new products such as the Infinity Dining program it rolled out recently.

"It was extremely surprising for us to see a campaign of this nature being launched without the restaurant committee even calling for any discussion regarding the same," Zomato said regarding the latest #Logout protest.