Hyderabad: The National Restaurant Association of India (NRAI) has cautioned restaurants against adopting aggregator payment gateways and deep discounting programs, warning of long-term harm to the restaurant industry.
The NRAI stated that these practices, while attractive initially, disrupt pricing structures, undervalue dining experiences, and create unfair competition. Smaller restaurants, in particular, struggle to match the discounts offered by larger players.
Aggregator payment platforms often charge commissions as high as 4-8%, far exceeding the 1-1.5% fees of traditional payment systems. Additionally, these platforms collect customer and revenue data from restaurants, leading to dependency and loss of direct customer relationships.
NRAI President Sagar Daryani urged restaurants to evaluate the financial impact of such programs and consider independent payment options. He warned that unchecked reliance on aggregators could lead to higher commission rates and reduced control over pricing and operations.
The NRAI highlighted the importance of protecting customer relationships and maintaining business autonomy for the long-term sustainability of the restaurant ecosystem.
