The Indian Hotel and Restaurant Association (AHAR) has recently took a decision to boycott Zomato’s Gold delivery service. The association made the decision at a meeting held on Thursday in Mumbai.
Nearly 300 restaurants have decided to boycott the service.
According to the reports the premium loyalty program by Zomato has not gone well with AHAR. The association says Zomato Gold doesn’t offer any kind of incentives for hoteliers and it would only benefit the food aggregator.
Earlier, the National Restaurant Association of India had opposed the launch of the program on deliveries, while also protesting the deep discounts offered to dine-in customers.
The point of such discounts and offers from Zomato and others was to get diners into restaurants more frequently. But some restaurants are having none of this deep-discounting anymore. It’s hurting their profits, they say.
In a statement AHAR, President Santosh Shetty said: “We had very clearly told the Zomato officials that we are completely against the Zomato gold delivery service scheme. It has 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 the same with an immediate effect.”
AHAR also raised concerns over commission rates for delivery. It said that the commission charged by Zomato is arbitrary. There are times when the commission goes to almost 25 percent which makes it difficult for the restaurants to do business. Most of the brunt has to be taken by the customer and the overall price of the service is increased.
AHAR has asked Zomato to completely abolish the generous discounts it doles out on deliveries as it’s a loss incurring program for many restaurants and not to discount beyond 15 percent including GST.