Restaurant owners' association piloting new commission model with food aggregators to grow business

Kolkata, Nov 12 (PTI) An association of restaurant owners has taken up a pilot project for a new partnership with food aggregators to create an "equitable financial structure" for restaurateurs and address issues like long-distance delivery charges, an official said.

National Restaurant Association of India (NRAI) Kolkata chapter head Piyush Kankaria told PTI that the new initiative is designed to ensure that delivery commissions and long-distance fees do not unfairly burden restaurant operators.

“We are piloting a new commission structure in which long-distance fees will not impact restaurant owners. Ultimately, both aggregators and restaurants need to coexist. We may not like certain aspects of dealing with aggregators, but we can’t do without them. They are unavoidable partners in today’s restaurant business,” Kankaria explained.

He said the ongoing pilot project reflects a "broader attempt to rebalance the economics of online food delivery and foster a healthier business relationship between restaurants and aggregators".

“The relationship is challenging but essential for the industry’s functioning,” he said.

Speaking about the ongoing conflict with aggregators, Kankaria stressed the importance of maintaining an open and transparent communication channel between restaurant owners and aggregators.

“We need to ensure that all issues are resolved amicably. The goal is a win-win for both of us — that’s very crucial,” he said.

Referring to progress made through dialogues, the NRAI official cited a recent breakthrough with Zomato.

“For the first time, Zomato has introduced an option in its app asking customers if they are willing to share their data with restaurants. Earlier, no customer data was shared. This small step shows how collaboration can bring positive change,” he said.

Describing aggregators as "a vital part of the ecosystem", Kankaria said their role in convenience and reach cannot be overlooked.

“It’s impossible to live without them. They are solving real problems, and we have to grow together. If they grow, we grow — it has to be a mutual relationship,” he added.

Highlighting the inclusive approach of the association, he said the NRAI gives equal importance to both new and established businesses.

“Inclusivity is very important. Even a small restaurant owner or a single-outlet operator is as important to us as a legacy brand. If new entrants don’t get the right support system, how will the industry grow?” he asked.

He underscored the food and beverage sector’s contribution to employment and revenue generation.

“Our industry is the second-largest employer in the country and contributes significantly to GDP and GST revenues. That’s why we are pushing for industry status for the F&B sector nationally,” he said.

Kankaria noted that while "industry status" may not directly impact GST input benefits, it would enhance visibility, ease access to capital, and ensure more industry-friendly policymaking.

“When we are recognised at the policy level, governments will also think for us — for the betterment of our industry,” he said.

Kankaria said NRAI continues to act as a bridge between restaurants and platforms, ensuring the voices of small and large operators alike are heard at the national level.

“We are co-piloting solutions and advocating fairness and sustainability. That’s how the industry can truly thrive,” he said. PTI BSM BDC