• The Indian Hotel and Restaurant Association in a unison agreed to shun the delivery services by Zomato under its Zomato Gold scheme.
• The AHAR body mentions that the program yields high benefits to the food aggregator and not the hotels.

An 8000 members body, AHAR, has reportedly announced boycotting Zomato Gold delivery program by the food aggregator company, Zomato. The action is said to come under effect immediately owing to the allegations held against the company for delivery from illegally-run kitchens and steep discounts.

It has been claimed that the hefty discounts offered by Zomato does not reap any benefits to the hotels under the program and is enjoyed by the company itself. On this, the association president, Santosh Shetty cited that AHAR in a unison had earlier asked Zomato to scrap off the Zomato gold delivery service program as they were entirely against it. Despite this, there requests were unanswered by the food aggregator company prompting the association to take a drastic step.

For the uninitiated, Zomato Gold on delivery offers its members one free dish every time they place an order. Zomato Gold was extended by the company is September this year in spite its deadlock with the restaurant on dine-in services.

Reliable sources claim that the Gold service by Zomato has been severely opposed by the restaurant industry as it is hindering the profitability of the bodies deeply.

Santosh Shetty further added that the association has not initiated an action against the Zomato Gold dining services but is strictly against its delivery services. Additionally, an email sent by AHAR to Zomato regarding the same has remained unanswered till the time.

As per the credible sources, AHAR believes that Zomato charges commissions up to 22-25 per cent in addition to 15 per cent of the GST tax which is bringing down the profits of the restaurants partnered with the company.

In a light of this, the National Restaurant Association of India’s termination of Zomato’s dine-in services continues calling the company’s extension of Gold delivery an ‘unacceptable proposition’.

Source credit: https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/8000-strong-hotels-body-to-shun-zomato-gold-delivery/articleshow/72215761.cms