BEST WISHES TO JRA FROM
By Tanisha Saxena (cbedit@imaws.org)
In recent years, food delivery platforms like Swiggy and Zomato have revolutionized the way we dine, offering consumers an expansive variety of culinary choices at the tap of a button. While this convenience has transformed the dining experience for many, it has also presented substantial challenges for restaurant owners, who now face the growing dominance of these delivery giants.
In Jalandhar, Punjab, the Jalandhar Restaurant Association (JRA) serves as the collective voice for local eateries, striving to protect their interests. Through negotiations, advocacy campaigns, and strategic partnerships, the JRA works tirelessly to secure fairer policies, helping restaurant owners sustain and grow their businesses amidst this evolving landscape.
While speaking on the impact of these dilevery giants, President of the association, Anuj Mohaindru emphasize, “While Swiggy and Zomato have created new revenue streams for restaurants, the price they charge for their services has raised eyebrows. Commission rates often range from 20% to 30%, squeezing the already thin profit margins of small and medium-sized eateries. For many, the fees translate into a choice between sacrificing quality or hiking menu prices, potentially alienating their customer base. Restaurants join these platforms to reach more customers, but the commissions are crippling.”
As these platforms consolidate their market presence, their aggressive pricing strategies often undercut smaller players. This monopoly-like behavior has raised concerns about fairness and sustainability in the restaurant industry. “If you look at the number of restaurants listed on these platforms in Jalandhar, it far exceeds the actual number of establishments we have in the city. I’ve repeatedly raised this issue with the regional heads of these platforms, as there’s no need for these fake listings. It takes away much-needed visibility from the long-standing eateries,” Mohaindru adds.
The president also highlights the confusion caused by these platforms. He explains, “Take the case of a popular restaurant, say ABC, which has built a strong offline reputation. When you search for it on a platform, you might come across something like ‘ABC Pro’ instead. People unknowingly order from ‘ABC Pro,’ thinking it’s the original ABC restaurant they know and love. The name and reputation of the traditional ABC restaurant are being misused, diluting its brand value. Greater transparency and visibility are urgently needed in such cases.”
The Migi policy introduced by Swiggy and Zomato was widely appreciated by restaurants for its transparency and mutually beneficial terms. Under this policy, restaurants retained more control over pricing and were charged a fixed commission, which helped them maintain profitability while expanding their customer base through the platforms. The policy also supported small and local businesses, providing them with a fair playing field in the competitive food delivery market.
However, recent changes in the policy structure have stirred discontent among restaurant partners. “Today, these delivery giants hold all the cards,” Mohindru laments. “The policies now are heavily skewed in their favor, making it difficult for restaurants to compete. The balance that once existed has been lost.”
Mr Mohindru further comments, “Swiggy and Zomato have created an environment where restaurants feel they must join their platforms to survive in a competitive market. As more consumers prefer the convenience of ordering food online, restaurants that don’t partner with these delivery services risk losing out on a large number of potential customers. The situation is worsened by the aggressive marketing tactics used by these platforms, which emphasize their broad reach and extensive customer base, making it feel urgent for restaurants to get on board. As a result, many eateries find themselves in a tough spot, forced to accept high commission fees and strict policies just to stay visible and relevant. This urgent need to be part of the delivery ecosystem raises important concerns about how sustainable this model is, as it often limits restaurant owners’ freedom and pressures them to compromise on quality and pricing. Addressing this dependency is crucial for creating a fairer and more balanced food delivery system.”
Founded in 2024, the Jalandhar Restaurant Association (JRA) is dedicated to fostering a strong community among local restaurateurs. Its mission is to provide valuable resources, networking opportunities, and training sessions, empowering members to navigate the complexities of the modern food industry. By advocating for fair policies and amplifying the voices of its members in key policy discussions, the JRA plays a pivotal role in ensuring the long-term success and sustainability of restaurants in Jalandhar.
