Restaurants Warned: The Pitfalls of Deep Discounting

The National Restaurant Association of India (NRAI) has advised its members to be cautious of deep discounting and payment gateway tools from aggregator platforms. The advisory highlights the aggressive strategies of platforms like Zomato and Swiggy, urging restaurants to evaluate the financial sense of using such services independently.

The National Restaurant Association of India has issued a warning to its members about the potential pitfalls of engaging with deep discounting and payment gateway tools offered by aggregator platforms. As restaurants seek to attract diners, food delivery giants such as Zomato and Swiggy are targeting the dine-in market.

NRAI has called on restaurants to only use aggregator-provided payment platforms if they are financially viable on their own. They warn that using these platforms might lead to restaurants losing customers to these aggregators due to attractive cashbacks and discounts.

In the advisory, the NRAI cautions that while some fees for securing reservations are understandable, high commissions and mandatory payment wallet usage are not advisable. They emphasize the long-term detrimental effects on the dine-in market, urging restaurant owners to remain vigilant.

(With inputs from agencies.)