Zomato promises to address restaurant partners’ concerns on discounting

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Published: August 22, 2019 4:56:54 AM

Goyal said Zomato has put a minimum floor on gold membership fee and will not sell the subscription programme for less than Rs 1,800 for an annual membership. The firm claimed that it ‘discontinued’ the recently launched trial packs for gold.

Deepinder Goyal, Zomato, restaurant, Zomato india, Zomato delivery, Zomato gold, Zomato login, zomato protestDeepinder Goyal, Zomato CEO and Founder

A day after online food and restaurant aggregators, including Zomato, met the National Restaurant Association of India (NRAI) and decided to rejig their discounting features, Zomato communicated to its restaurant partners that it would incorporate changes in its Gold programme to address restaurateurs’ concerns on deep discounting.

In a mass mail to partners, founder and chief executive officer Deepinder Goyal said Zomato would facilitate limiting Gold usage by a single user to one unlock per day so that “customers complete their dining experience at a single restaurant, bringing the net effective discount down significantly”. The changes that will be rolled out before September 15 will restrict the number of gold unlocks to a maximum of two per table from multiple gold locks currently.

Goyal said Zomato has put a minimum floor on gold membership fee and will not sell the subscription programme for less than Rs 1,800 for an annual membership. The firm claimed that it ‘discontinued’ the recently launched trial packs for gold.

To add to partners’ revenue growth, Zomato said restaurants with a minimum of 1,000 Gold unlocks per quarter per outlet and with an average cumulative rating of 4.5+ for Gold visits during the quarter will get ads credit worth Rs 25,000 per outlet per quarter from Zomato to promote their brand.

Further, for partners that have a minimum of 600 unlocks per quarter, Zomato will invest back in the partner’s brand by shooting business videos for them free of cost which will be distributed widely on the company’s platform. Last week, over 1,000 restaurants across cities delisted themselves from dine-in programmes offered by the platforms as part of ‘logout’ campaign. Restaurant bodies have long maintained that deep discounting by online platforms have been eating into their profits and hurting their businesses.

To lure restaurants to rejoin its Gold programme, Zomato said restaurants joining the service before August 26 will not need to pay sign-up fee.

“The reconstruction of Gold is another attempt to stuff out old wine in a new bottle. It’s a tweak in the drug which does not solve the addiction. Today, they have sweetened the pill in the form of free sign-up to rejoin the programme,” NRAI president Rahul Singh said.
Since the launch of the service in November 2017, the programme has been ‘shifting goal posts’ and said restaurants will continue to stay logged out, Singh added.

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