Restaurant body's move is an attempt to offer viable delivery alternative and unite the restaurants under the body.
Anurag Katriar, NRAI
Forced to agree to discounts due to the aggressive policies of delivery platforms, the National Restaurant Association of India (NRAI) and its member had started the #Logout campaign last August in protest. While the campaign turned out to be successful to an extent with aggregator platforms forced to change their predatory pricing policies, the NRAI decided to put a definitive plan into action to find a way out. The association has now announced plans to launch an alternative discovery and delivery platform, which will come into force by August-September.
"We realised that this is the new way of doing business [online aggregators] and we cannot ignore it, so let's make it better for us. With this platform, the customer data will be ours, discounts will be decided by the restaurants, and services will be unbundled. Every individual restaurant that gets the order will own the data; NRAI is not the owner of the data. Existing aggregators had become digital landlords. We are not saying that the app will replace the current players overnight, it's just another choice which will be available," says Anurag Katriar, president of NRAI; CEO and executive director of deGustibus Hospitality Pvt Ltd.
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The project had been in the works months before COVID-19 hit the industry and all members were of the opinion that a marketplace cannot decide what the buyer and seller should do about the price. The high rate of commission is another concern. Restaurants are also forced to compulsorily buy the full bouquet of services by the platform, for example restaurants cannot use their own delivery fleet despite having one. One of the biggest issues for restaurateurs is that the customer and transaction data is the sole property of the aggregator, something that platforms started utilising to launch and promote their own properties.
Gauri Devidayal, restaurateur
Members of the F&B industry feel positive about the move. "These aggregators have used every situation to their advantage. Even now these guys are trying to raise the commission at a very high percentage. We are more than happy that the organisation is launching this platform which will help us work on a lower commission and reduce our expenses, especially now," said Ryan Tham, owner, The Good Wife, Koko, Foo.
Gauri Devidayal, Co-founder The Table, Magzine Street Kitchen, Iktara, Mei13, Mag St. Bread Co, saod , "The commissions and discounts offered by them were not at all viable for restaurants. This platform will also smoothen the ordering process and remove the need for us to organise a rider when delivering out of our radius."
Meanwhile, NRAI has already collaborated with a tech company to work on this platform, and the money for the platform is also being pumped in by the company; Katriar is tightlipped about the name for now.
Ryan Tham and Avik Chatterjee
Avik Chaterjee, founder, Hoppipola, Episode One, admits that everyone in the industry is in survival mode during lockdown: "Anything that will make us bear lower expenditure will be the best service for us. NRAI is not putting in money in this; this may change in the future. This hasn't been done to spite anyone, it is to protect what's best for our trade and take control of our own business decisions," he says.
Smaller restaurants will benefit the most from this as the platform will allow the owners to accept orders as small as R20 and use their salaried employee for delivery. NRAI is also working on two other tech projects, a loyalty programme, and a platform for transactions which might run parallel to the aggregator platform.
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