Zomato Rejigs ‘Gold’ Service, NRAI Refuses to Budge

Zomato Rejigs 'Gold' Service, NRAI Refuses to Budge

Photo Credit: Zomato

Zomato Gold membership price is currently set at Rs. 1,800 per year

HIGHLIGHTS
  • Restaurants want Zomato to stop deep discounting practices
  • Zomato Gold service offers 1+1 offer on food and 2+2 on drinks
  • The company said it has put a minimum floor on Zomato Gold membership fee

Giving in to the demands of offline restaurants to stop “unethical” deep discounting practices, online food aggregator Zomato on Wednesday announced to immediately reconstruct its ‘Gold’ service to help drive better margins for the restaurants.

In a letter to its partner restaurants accessed by IANS, Zomato Founder Deepinder Goyal said the company has put a minimum floor on Gold membership fee and will not sell ‘Gold’ service at anything less than Rs 1,800 for an annual membership.

“The biggest pain point we heard was that users hop between places on a busy night, claiming 1+1 starters at one place, 1+1 main course at another, and 2+2 drinks at the last.

“To solve this, we will limit Gold usage by a single user to one unlock per day. This will ensure that customers complete their dining experience at a single restaurant, bringing the net effective discount down significantly,” Goyal said in a letter.

Another big pain point, said Goyal, was about multiple number of Gold unlocks per table.

“Going forward we are going to restrict the number of unlocks to a max of two per table. This will be applicable from September 15. In case of more than 5 people on a table, we are coming up with a modified Infinity Dining product based on set menus which will work really well for large groups,” the Zomato Founder explained.

The letter came after a nationwide #logout campaign by the restaurants. The National Restaurant Association of India (NRAI) on Tuesday told the online food aggregators to realign their offerings to create a restaurant-friendly ecosystem.

Reacting to Zomato’s letter, NRAI, which has been in the forefront of the protest against deep discounts, said on Wednesday that it was not yet satisfied with the latest changes, calling the decision a “knee jerk reaction”.

In a statement, Rahul Singh, President of NRAI said: “We are in receipt of the mass email sent out by Zomato to all member restaurants. This is a knee jerk reaction to the #logout movement and the meeting held yesterday between the founding team of Zomato and Management Committee members of NRAI.