NRAI Concerns About Food Aggregators

The growth of food delivery platforms has transformed the Indian restaurant industry. Millions of customers now discover, order, and review restaurants through aggregators, making online food delivery a crucial sales channel for restaurants of every size.

However, this rapid growth has also created several challenges. The National Restaurant Association of India (NRAI), which represents thousands of restaurants across the country, has repeatedly raised concerns about how food aggregators operate and how these practices affect restaurant businesses.

Understanding these concerns is important for restaurant owners because they highlight a larger issue: who owns the customer relationship in the digital era?

1. High Commission Costs

One of the biggest concerns raised by NRAI is the overall cost of selling through food aggregators. Beyond basic commission fees, restaurants may also incur expenses related to advertising, promotional campaigns, packaging, delivery support, and discount participation.

For many restaurants, this increases the effective cost of acquiring an online order and impacts profitability.

2. Deep Discounting Culture

Customers have become accustomed to discounts and offers on food delivery platforms. NRAI has argued that excessive discounting can reduce restaurant margins and make it difficult for businesses to maintain their pricing strategy.

Restaurants often face pressure to participate in promotional campaigns to remain competitive and visible.

3. Limited Access to Customer Data

Customer data is one of the most valuable assets in modern business. Restaurants want access to information such as:

1. Customer preferences
2. Order history
3. Frequency of visits
4. Contact details (with customer consent)

Without direct access to customer information, restaurants find it difficult to build loyalty programs, personalized marketing campaigns, and long-term customer relationships.

4. Loss of Direct Customer Relationship

Traditional restaurant business relied on direct customer interaction. Digital platforms often act as an intermediary between restaurants and customers.

NRAI believes restaurants should have stronger ownership over their customer relationships through:

1. Loyalty programs
2. Direct ordering channels
3. Membership systems
4. Feedback collection
5. WhatsApp and SMS marketing

5. Price Parity Concerns

Restaurants have also expressed concerns about restrictions that limit their ability to offer different prices on their own websites, apps, or direct ordering channels.

Many restaurants want the flexibility to provide exclusive offers and better pricing through their own digital platforms.

6. Search Ranking Transparency

Visibility on food aggregators significantly affects sales. Restaurants have raised questions about how rankings are determined and whether factors such as advertising and promotions influence search results.

Greater transparency can help restaurants make informed marketing decisions.

7. Rising Advertising Costs

Many restaurants now invest additional budgets in sponsored listings, advertisements, and promotions to maintain visibility.

As a result, online selling costs become a combination of:

1. Commission
2. Discounts
3. Advertising
4. Promotional participation

This creates challenges, particularly for independent restaurants and small businesses.

8. Dependence on Third-Party Platforms

Perhaps the most important concern is dependency.

Restaurants rely heavily on aggregators for customer acquisition, while customers increasingly associate ordering with the platform rather than the restaurant itself.

This creates an important question:

How can restaurants balance aggregator sales while also building their own direct customer channels?

The Future: A Hybrid Digital Strategy

Most restaurants do not need to choose between aggregators and direct ordering. The future lies in a hybrid approach:

1. Food aggregators for discovery and reach
2. Direct ordering for better margins
3. Loyalty programs for repeat business
4. QR ordering for dine-in convenience
5. CRM systems for customer engagement
6. WhatsApp marketing for retention

Restaurants that build their own customer database, loyalty programs, and digital infrastructure are likely to have greater control over pricing, customer relationships, and long-term growth.

How OnePe Helps Restaurants Build Independence

At OnePe, we believe technology should empower restaurants, not replace their relationship with customers.

OnePe provides:

1. QR Menu & QR Ordering
2. POS System
3. Direct Ordering Website
4. Table Reservations
5. Waiter Calling
6. Loyalty & CRM
7. WhatsApp Marketing
8. Customer Database
9. KDS & Billing
10. Multi-Branch Management
11. ONDC Integration

With OnePe, restaurants can continue using aggregators while also building their own direct digital channels and customer relationships.

The goal is simple:

Restaurants should own their customers, while technology helps them grow.