The Indian Hotel and Restaurant Association (AHAR) held a meeting with Zomato officials in their offices, where they raised several issues with food aggregators ranging from licensing to listing illegal kitchens. unethically managed, from large discounts for Zomato gold on delivery, to high commission rates.
The Indian Hotel and Restaurant Association (AHAR) held a meeting with Zomato officials at their offices, where they raised several issues with food aggregators ranging from licensing to listing illegal kitchens. unethically managed, including large discounts for Zomato gold on delivery and high commission rates.
The body of the association of restaurants with more than 8,000 restaurants during its meeting with Zomato officials raised major compliance issues that are not followed by the food aggregator.
The association asked them to serve the restaurant which has legally obtained the compulsory licenses and fire compliance u / s 394 of the MCGM law.
By law, any restaurant / kitchen / cafe must have a license from Brihanmumbai Mahanagar Palika.
AHAR informed them that on the platform there are many outlets listed with only payment receipt / FSSAI license. AHAR asked Zomato to ask all partner restaurants to provide their license number and the same must be uploaded against the restaurant name on the Zomato website.
AHAR also raised a question about delivery commission rates. The association said the delivery commissions charged by Zomato are arbitrary.
The commission even goes up to 22 to 25 percent in cases and is therefore difficult for restaurants to do business. It is the customer who has to bear the brunt of it, because then he has to increase the prices. They asked the platform not to exceed 15% including GST.
While there has been an issue with the other association regarding Zomato’s gold meals, AHAR has raised serious concerns about Zomato’s gold delivery discounts. The association asked them to completely remove the offers because it is a loss-making proposition for the restaurants.
Other subjects discussed concerned the unavailability of delivery people by Zomato. There have been cases when ordering Zomato says the restaurant cannot deliver, when in reality Zomato does not have delivery people during this period. AHAR asked them to share customer data in order to enable restaurants to take orders and deliver on the platform, so that the customer is not inconvenienced when Zomato cannot deliver or does not have delivery people.
AHAR also raised the issue of cases where food aggregators deliver until 4 a.m. AHAR has stated that these places are illegal or operate without proper standards or licenses.
The duplication of restaurant and brand names on the platform has been a hindrance for the food industry and customers. There have been cases of new restaurants with the same names or
with slight alteration in the same area as known. These are confusing and non-brands try to take advantage of the well-known ones.
AHAR asked them to put pictures of the restaurant so that the customer gets the food from the restaurants they want and not from a namesake restaurant. There were several other big discount points that result in losses for restaurants, rating methods where a restaurant that does not advertise with the platform is rated low, etc.
Another point was that there were unscrupulous food bloggers abusing the platform for personal gain by legitimately ransoming a restaurant run by the threat of negative reviews, all for a measly free meal or two.
The meeting was held by AHAR President Santosh Shetty and his team of officials with representatives from Zomato, where the items were discussed extensively. Officials pledged AHAR to provide their inputs during the first week of November and also to work on the issues jointly.