Why restaurants shouldn’t accept new rejection policy

Restaurants have lately felt like they are being kicked while they are down. With no respite from the government through bailouts or deferred payments on duties and licenses, new restrictions on operational timings with indoor dining being completely restricted in a few major cities, and unfair rules and practices like the rejection policy from Zomato have only made things worse. While it’s true restaurants are extremely dependent on food delivery now more than ever, it sure doesn’t sit well with them when an aggregator places stringent rules and regulations on their order rejection policy without consulting them & here is why restaurants shouldn’t accept rejection policy.

restaurants shouldn't accept new rejection policy

What aggregator claims?

Zomato has claimed that the revised “order acceptance terms” were only sent out to a few restaurants with a high order rejection rate. Restaurants made liable to compensate customers for the order and repeated rejections could lead to a suspension from Zomato’s platform. Riyaz Amlani, MD and CEO at Impresario Handmade Restaurants took to Twitter to highlight these changes. He stated, “For each order rejected by the restaurant, the restaurant will be liable to compensate. The restaurant has to pay an amount equivalent to 25% of the order value or a minimum of ₹25, whichever is higher but will not exceed ₹200,”. “Additionally, if one any given day, the orders rejected by the restaurant exceeds 3% of the orders. If a restaurant rejects more than 1 order in a day, Zomato suspends the online ordering services of restaurants the next day,” he added.

Zomato claimed its policy has been in effect for over 8 months. It has also helped reduce the rejection rate by over 50%. While they claimed that the policy doesn’t apply for more than 2-3 months for the restaurants that get this email. They pass on the collected funds to the customers. They also provide additional compensation from their side as a token of apology for the inconvenience caused to the customers.

restaurants shouldn't accept new rejection policy

Reducing dependence on aggregators

This is not the first time restaurants have had a bitter taste in their mouths while dealing with the food aggregator duopoly. Swiggy and Zomato increased commissions to achieve profitability and be more appealing to investors but placed restaurants. During the lockdown, the restaurants had no choice but to adhere to the rules if they wanted to survive. The situation instills a feeling of déjà-vu for restaurateurs who feel once again they have to stick without an option. Restaurants need to switch to their own platform. They can decrease their dependence on aggregators or watch their business as a pawn in a game of cash burn, marketing expenditures, and inflated IPOs.

accept new rejection policy

Benefits of having own platform

Restaurants can compensate their users for rejected orders and communicate better why they rejected an order. Since most restaurants don’t even know their customers directly on a food aggregator app, this is almost impossible. With their own platform, they can reject an order if there’s a shortage of ingredients and mark that item out of the menu as well. It is now important to understand why restaurants shouldn’t accept a new rejection policy. High rejection rates are not good for any restaurant. They don’t have any control over those rejections. Those customers get compensation which goes a long way in rebuilding the deteriorating customer relationships. It’s time for restaurants to take steps against the policies of food aggregators. Especially when deliveries and takeaways are the only sources of revenue for restaurants. To know more about how you can turn your customer data into Billion dollars, Visit our Blog – https://blog.yumzyx.com/restaurants-can-turn-customer-data-into-dollars/

Learn how you can benefit from an independent platform. 

Arjun Saini

Arjun writes about emerging trends in technology and how it impacts the hyperlocal landscape in India. He likes drinking too much coffee and makes sure the coffee machine works harder than he does.

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