The Indian hotel and restaurant association (AHAR) has decided to boycott the Zomato Gold Scheme that offers one for one food item free on home delivery.
The Gold scheme was initially offering free food and drinks only to subscribers visiting a member restaurant. This was then extended to home delivery as well, even as restaurants were protesting the structure of the scheme.
Also read: Zomato planning to extend Gold programme to home delivery, says NRAI
Hoteliers’ protest
AHAR pointed out that there would be no gain for the hoteliers and it would only benefit the food aggregator company. AHAR officials headed by its president Santosh Shetty held a meeting with Zomato officials in October-end on various issues.
They had clearly told the food aggregator that they are completely against the Zomato Gold service on delivery and asked them to scrap it. However, there has been no action by the food aggregator on the same. AHAR, which has 8,000 members, said over 300 restaurants have completely boycotted the Zomato Gold delivery service. All the members of the association that opted for the service will stop it with immediate effect.
Shetty said, “We had very clearly told the Zomato officials that we are completely against the Zomato Gold delivery service scheme. Its been almost a month after our meeting and we have decided to boycott the service. We have not taken any decision on the Zomato gold dining services, but we are completely against the Zomato gold delivery services. Our members who have taken their services will stop it immediately.”
Read more: Zomato logs out of talks with restaurateurs on deep discounting
Unlicensed eateries
Earlier, the restaurant association had asked Zomato to service only those restaurants that have mandatory licences. As per the law any eating house/kitchen/cafe has to mandatorily have 394 Licence from the Brihanmumbai Mahanagar Palika. AHAR in the meeting with Zomato officials had informed them about many outlets listed on their site with only FSSAI payment receipt/licence and not the mandatory licences.
“There are instances of duplication of names of restaurants which results in customer ordering from a restaurant with a similar sounding name but not the original, because the platform allows restaurants with just the basic FSSAI registration and not the Mcgm required 394 health licence,” Shetty added.
AHAR has asked Zomato to request all the partner restaurants to provide with their 394 Licence number and the same needs to be uploaded against the restaurant name on the Zomato site.
AHAR had also raised an issue on the delivery commission rates. The association said the delivery commissions charged by Zomato are arbitrary. The commission goes up to 22 to 25 per cent in some cases and hence is difficult for the restaurants to do the business.
Food bloggers
On classification and categorisation of hotels and restaurants by independent food bloggers, Shetty said all bloggers are not reliable. Acording to him, some food bloggers misuse the platform for personal gains and threaten restaurants with negative rating.
“The harsh comments given by bloggers are the result of not entertaining them. Overall, these bloggers are not beneficent for hotel industry. In several instances, a blogger is in a different city and blogging about the restaurants of another city. They sometimes do it for personal gratification, which could be as simple as a free meal if in the same city, but if denied, give negative rating,” Shetty said.
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