Kolkata: The National Restaurant Association of India (NRAI), today successfully hosted a thought-provoking and impassioned virtual townhall, NRAI Townhall 10.0 which was attended live by more than 8000 people. The key focus of this Townhall was to discuss and debate the primary issue plaguing the food and restaurant sector, "Are Food Aggregators Helping or Hurting the Restaurant Business in India?"
NRAI
Townhall 10.0 saw participation and attendees from a wide-ranging list of
industry stakeholders including restaurateurs and industry experts. The
townhall provided an engaging platform to debate the complex and fast-declining
relationship between food aggregators and the restaurant ecosystem due to the
recent uncompetitive practices of the aggregators. Leading restauranteurs and
industry veterans took the time to passionately discuss this critical issue by
vociferously highlighting the challenges and opportunities brought about by
aggregator platforms. More importantly, it placed the stark reality in front of
the fraternity members on the extremely damaging long-term impact on the
overall industry if these were left unchecked.
Among many of the issues that
were discussed, the key issues that were brought up in NRAI Townhall 10.0 were:
·
Private
Labelling by Aggregators: Concerns over monopolization by platforms launching
private labels and leveraging restaurant data.
·
Aggregator
Payment Platforms: The bundling of payment gateways with reservation services,
eroding autonomy and adding unnecessary costs.
·
Deep
Discounting Practices: Aggressive discount strategies disrupting the dine-in
and food delivery sectors.
Key
Findings from Audience Polls: During the course of the Townhall, NRAI conducted
live polls to gauge the viewer's sentiment on critical issues surrounding food
aggregators. The polls saw enthusiastic participation, with respondents voicing
strong opinions on the challenges facing the restaurant industry.
Key insights from the
polls include:
·
92% of
viewers believe that customer data is essential and necessary in bettering
customer experience
·
70% of
viewers believe that private labels in Quick Commerce are already impacting
their business
·
69% of
viewers believe that they have no negotiation powers with
respect to commissions
·
42% of
viewers believe that flexibility is needed when it comes to discounting
·
42% of
viewers feel that flexibility is required in aggregators
·
34% of
viewers believe that Aggregators have stolen customers and have converted
customers of restaurants into their own customers.
Key
highlights of the discussion during Townhall: Anurag Katriar, Founder & MD of Indigo
Hospitality moderated the Leader’s panel with Industry Stalwarts like
Anshul Gupta, Co-Founder of EatClub Brands, Chethan Hegde, Founder & MD of
Whitehorse/ 1522, Deepti Sarma, Co-Founder & Director of 22nd Parallel,
Gandharv Dhingra, Co-Founder & CEO of Roll Baby Roll, Gauri Devidayal,
Co-Founder & Director of Food Matters India Pvt Ltd, Kavitha Mantha, Owner
of Green Organics, Praful Chandawarkar, MD of Chiranjeev Restaurant and Foods
Pvt Ltd, Pranav Rungta, Director of Mint Hospitality Pvt Ltd, Riyaaz Amlani,
Founder and MD of Impresario Entertainment & Hospitality Pvt Ltd, Sagar
Daryani, CEO & Co-Founder of WOW! Momo Foods Pvt Ltd, Thomas Fenn, Partner
of Mahabelly, Zorawar Kalra, Founder & MD of Massive
Restaurants Pvt Ltd.
Sagar
Daryani, NRAI President, said, "India's
food delivery industry is at a crossroads, with profitability, sustainability,
and fairness being put to the test. While we welcome developments such as quick
commerce in the food delivery space, we are deeply concerned about aggregators
expanding into private labels, leveraging restaurant data, and competing
directly with their own partners. This practice not only creates an unfair playing
field, but it also undermines the trust that is at the foundation of this
ecosystem. The lack of transparency in policies, rising commissions, and
aggressive ad-driven visibility models are all contributing to restaurants'
unsustainable position. We are committed to finding solutions, which include
investigating third-party alternatives, encouraging dine-in growth, and working
with aggregators on more equitable terms. Our industry's survival and
sustainability rely on creating a balanced ecosystem that considers the
interests of all stakeholders."
Pranav M Rungta, NRAI
Vice President, Director – Mint Hospitality Pvt. Ltd., highlighted, “We saw tremendous engagement, with more
than 8,000 viewers and 3,000 + active comments—proof that our collective voice
is making an impact. Now more than ever, unity is key to driving the change our
industry needs. While aggregators do add some value, we must ensure they
support our growth without taking control. Through continuous dialogue with
ministers and trustees, we are committed to safeguarding the interests of our
fraternity and shaping a future where we lead with strength and collaboration.”
Zorawar Kalra, NRAI
Vice President, Founder & Managing Director, Massive Restaurants Pvt. Ltd
said, “The restaurant industry is
built on authenticity, experiences, and value—none of which should be
compromised by the cycle of deep discounting and unfair terms imposed by
aggregators. While these platforms have undeniably expanded reach, their
approach must align with the sustainability of the dining-out ecosystem.
Collaboration is essential, but it must be fair and balanced. Restaurants
should focus on creating memorable experiences, adding value during off-peak
hours, and fostering direct connections with their customers. Only when we
reclaim the narrative and move away from a dependency on discounts can we truly
preserve the integrity and profitability of our industry.”
Riyaaz
Amlani, Founder & Managing Director, Impresario Entertainment &
Hospitality Pvt. Ltd, said, “The
restaurant business has always been about personal connections, exceptional
food, and memorable experiences. While aggregators have undeniably transformed
the way customers discover and engage with us, they should be seen as tools to
amplify our reach—not as gatekeepers of our customer relationships.
Restaurateurs must take charge by fostering direct connections with diners,
offering consistent value across channels, and using these platforms
strategically as marketing avenues rather than relying on them entirely. The
future of our industry depends on how we strike this balance while staying true
to the heart of hospitality.”
Praful
Chandawarkar, Managing Director, Chiranjeev Restaurant and Foods Pvt. Ltd.
remarked saying, “Aggregators are increasingly taking control of areas like
hygiene audits, but that authority should rest with restaurants. For the
fraternity to reclaim our space, the industry must focus on enhancing the
product—improving ambience, service, food safety, and nutrition density. When
we lead with quality, aggregators become tools, not controllers. Unlike
restaurants that strive to earn customer loyalty, aggregators treat loyalty as
something to be sold, burdening us( fraternity) with programs that come at an
unfair cost. It’s time for a movement toward excellence and independence in the
restaurant industry.”
Gauri
Devidayal, Co-Founder & Director, Food Matters India Pvt. Ltd. said,
“Aggregators are pushing an unnecessary link between table reservations and
payment gateways, claiming it benefits customers, but the reality is different.
Customers already have multiple payment options, and bundling these services
only imposes restrictions on restaurants while adding no real value. Unlike
delivery, which involves operational efforts justifying commissions,
reservations do not. Restaurants must reject commission-based fees for
reservations, demand a fixed-fee model, and advocate for the separation of
payment gateways to safeguard their independence and ensure fair practices.”
Anshul
Gupta, Co-Founder, Eat Clubs said, “The
restaurant industry has played a pivotal role in building the food delivery
ecosystem, yet we now face a significant challenge as aggregators shift from
partners to competitors. By setting up private labels, leveraging exclusive
data, and occupying premium visibility on their platforms, they are directly
competing with the very restaurants that helped establish their success. This
shift undermines trust and fairness in the ecosystem. The time has come to
address these practices and ensure a level playing field—one that respects the
partnership between platforms and restaurants while safeguarding the interests
of operators of all scales, from single outlets to national chains."
Thomas
Fenn, Partner, Mahabelly commented saying,
“Table reservations are an essential service for restaurants, but aggregators
are bundling them with non-essential services, forcing us to adopt their
payment gateways and unnecessarily share sensitive customer data, like payment
habits and business size. This practice allows aggregators to control pricing
dynamics and offer discounts, while adding little to no incremental value from
a service perspective. Restaurants must focus on delinking essential services
from non-essential ones and avoid adopting services that don’t contribute to
their growth or efficiency.”
During
the Townhall, NRAI and its member partners focused on trying to find solutions
to increase transparency and trustby attempting to get the Food Aggregators to
adhere to clear and fair policies for both parties, including data sharing amongst
others, to build trust. The townhall received overwhelming appreciation from
all participants for its comprehensive discussions and actionable insights.
NRAI
announced its commitment to further engage in continued dialogue with
aggregators, policymakers, and industry leaders to advocate for reforms and
build a transparent, equitable environment for the restaurant community. The Association
firmly believes that a collaborative approach involving the industry,
policymakers, and regulators is crucial to ensure the long-term sustainability
and growth of the Indian restaurant sector. The association will also publish a
detailed report summarizing the key takeaways from the townhall which will be
shared with concerned stakeholders.
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