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On Demand Businesses 101

#Logout Campaign: Should Restaurateurs Logout or Stay with Aggregators

#LogOut campaign has created a Buzz in the internet by storm. Due to this campaign, over 1,200 restaurants have logged out off food platforms that offer discounts at dine-in restaurants.

What is #Logout campaign and how did it start?

The number of food platforms are increasing by the day. Most of these platforms offer huge discounts to their customers on food orders. For E.g. Zomato is offering 1+1 on food and 2+2 on drinks for their gold membership which launched in November 2019. 

Many other companies like Dineout is offering their customer to buy coupons starting at Rs. 5; Plus, Gourmet Passport members get a buy-one-get-one on buffets, food, and drinks at over 800 restaurants across the country. Nearby also has discount coupons for various restaurants. 

NRAI (The National Restaurant Association of India) feels that these discounts hurt the restaurant businesses, and thus has taken the decision to log out of Nearbuy, EazyDinner, Zomato and other platforms on August 15. 

Have a Look on NRAI’s tweet 

“NRAI has come together to detox consumers from discount addiction. The move is being undertaken to protest against aggregators who have distorted a vibrant marketplace by aggressive discounting and predatory pricing”. 

Restaurateurs, it’s time to #Logout. #CozWeDeserve”

#Logout campaign

However, the customers get great deals on foods and drinks, and get to save a lot of money; these food apps claim that they are getting more traffic as well as profit through this program.

Aggregators and the #Logout campaign 

After the #LogOut campaign was initiated, lengthy meetings between the restaurant aggregators and NRAI were held, both the sides had agreed to use technology as an enabler to ease the dining experience making it friction-less.

All aggregators promised to revise their features that will allow customers to detox from the ‘Discount Addiction that has crippled the industry.

However, Zomato released its 10-point improvement plan on its Gold membership scheme, in which they decided to resolve the issue once and for all by saying that it is logging out of the restaurants’ #logout campaign. 

A person from Zomato said, “All our products are always in a continuous state of evolution, and we are always listening to our users and our partners.” 

 Zomato founder Deepinder Goyal

 tweeted, “Zomato is logging out of the logout campaign. We have said enough, and we are getting back to work. I am confident better business sense will prevail at the end.”

     CEO and Co-founder Ankit Mehrotra said, “We’re happy to have come to a positive consensus with the NRAI and support our restaurant partners.” 

Conclusion

The food aggregator platforms though it provided discounted offerings for the customers failed to add value to the restaurateurs. The restaurant owners claimed that there was a legacy behind each of their business be it the cuisine, the customer service and the ambience of the place. 

The Food platforms tried to force their terms on the restaurant owners which killed the freedom of entrepreneurship. Though they claimed increase in the no of orders and the revenue, the profit margin was reducing. 

Only time will tell if the aggregators will live up to the commitments promised to the NRAI. 

If your facing the same issues with aggregators, Why Don’t you start your own Zomato

If you are a restaurant owner or any business owner wanting freedom of operations and aspiring to build your own brand then try out Yelo.  

We help budding entrepreneurs set their footprint online. 

Visit our website and check-out our demo for online marketplace or Zomato App Clone. 

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