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“We request restaurant owners to stop Logout campaign”, tweets Zomato’s Deepinder Goyal

Another tweet from Goyal pointed out that the average price of a delivery order in India is just about the same as that of China.

, ET Bureau|
Aug 17, 2019, 09.27 PM IST
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“We request restaurant owners to stop Logout campaign”, tweets Zomato’s Deepinder Goyal
The #Logout campaign is being led by the National Restaurant Association of India (NRAI).
NEW DELHI: Online food delivery and dine-in aggregator Zomato founder and chief executive Deepinder Goyal tweeted late Saturday that restaurant owners should stop the logout campaign. “In the interest of consumers, we request restaurant owners, to stop the logout campaign, and have a collaborative discussion with internet aggregators for finding a sustainable way forward,” he said, in a series of tweets.

Over the past week, hundreds of restaurants have delisted from the dine-in platforms of Zomato, EazyDiner, Nearbuy, Magicpin and Dineout under a #Logout campaign, over the issue of what they say is “unsustainable deep discounting”.

“I am sad that young entrepreneurs (much like me) in the restaurant industry are feeling the pressure to such an extent that they had to launch such a campaign. We set out to create a company which can create a massive impact on consumers, as well as business owners. Somewhere, we have made mistakes and things haven’t gone as planned,” Goyal’s tweet said.

The #Logout campaign is being led by the National Restaurant Association of India (NRAI).

Goyal said Zomato is “committed to work with the industry and make modifications to Zomato Gold which will result in a win win situation for restaurants and consumers”.“Just like last year, when we changed some rules around Gold after hearing about the concerns of the restaurant community,” the tweet adds.

“What's good for restaurants is good for Zomato. What's good for consumers is good for Zomato. Finding the right balance and product market fit is the restaurant industry's problem (and that includes us),” said another of his tweets.

Restaurant companies have been in direct confrontation with the aggregators over deep discounting, cloud kitchens and data masking in the past as well.

Zomato said earlier in the day that around 65 restaurants have opted out of Zomato Gold which is 1% of the restaurant partner base of Gold, though reports from the restaurant industry pegged the number of delistings at well above 1,200.

He said while Zomato Gold has been a major hit, bargain hunters have also joined Zomato Gold which are hurting some segments of the restaurant industry very badly.

“This is a wake up call that we need to do 100x more for our restaurant partners than we have done before. I would also want to urge the restaurant industry to proactively look for ways to reduce operating costs, so that eating out becomes more affordable for consumers - our only objective here is to drive the growth of the restaurant industry,” his tweet said.

Another tweet from Goyal pointed out that the average price of a delivery order in India is just about the same as that of China. However, per capita income in China is 4.5x as that of India. “It's important we bring down prices to find sustainable growth in the food sector in our country,” the tweet added.

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