Zomato Gold brought new business, bigger orders for restaurants; hotels still not convinced

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Updated: September 23, 2019 1:16:26 PM

While thousands of restaurants remain logged out of Zomato Gold as they claim unsustainability, the food aggregator’s paid subscription program has actually brought more business to hotels and cafes.

Zomato, Zomato india, Zomato delivery, Zomato gold, Zomato login, financial express editorial,  financial expressZomato Gold program has given a push to the dining out habits of the eaters.

While thousands of restaurants remain logged out of Zomato Gold as they claim unsustainability, the food aggregator’s paid subscription program has actually brought more business to hotels and cafes. “60% of the Gold partners agree that there has been an increase in new customers coming in because of Zomato Gold,” management consultancy firm RedSeer said in a recent statement. However, it is not just about new customers but also about bigger order quantities and bill volumes. According to the same report, “Gold partners have witnessed about 35% bill growth,” the report added.

According to RedSeer’s research, Zomato Gold program has given a push to the dining out habits of the eaters and Gold members are more willing to try out new restaurants and eat more per visit. The same has also helped the restaurants by improving profit margins and business growth. However, following the fall out with NRAI (National Restaurants Association of India), Zomato had proposed changes to Gold program, restricting several benefits for consumers as the company looked to appease restaurant partners. Among many changes proposed by Zomato, hike in joining fees of the platform, restricting multiple logins of one subscription, and limiting Gold usage to a single-use per day were the major variations. 

Days after restaurants said that they don’t buy Zomato’s “revamped” Gold program as it was “old wine” bottled in new packaging, the Deepinder Goyal-founded company suspended the operations of its Infinity Dining program in September till indefinite time. While the row with NRAI could have been one reason for the same, Zomato spokesperson said that the company was trying and updating the platform based on the feedback it has garnered. “The product is in alpha stage and being tested continuously … We received a range of feedback about the service, and have paused it as we incorporate the feedback,” Zomato’s spokesperson had said. 

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