Zomato in more trouble as thousands of restaurants participate in #LogOut campaign over deep discounts under Zomato Gold

Fresh trouble is brewing around food-delivery app Zomato after more than 1200 restaurants de-listed themselves from Zomato Gold dine-out programme. Reports have it, thousands of restaurants in major Indian cities like Mumbai, Pune, Bengaluru, Kolkata, Goa, Delhi, Gurgaon and Vadodara have opted out of Zomato Gold over the "unsustainable" deep discounts offered by Zomato.

In a series of tweets, Zomato founder Deepinder Goyal said it is open to making modifications to rectify "mistakes." Goyal also appealed to restaurant owners to stop the #LogOut campaign. 

"I am sad that young entrepreneurs (much like me) in the restaurant industry are feeling the pressure to such an extent that they had to launch such a campaign. We set out to create a company which can create a massive impact on consumers, as well as business owners," Goyal tweeted.

Goyal said Zomato Gold had been a major hit.

"We understand that bargain hunters have also joined Zomato Gold and they are hurting some segments of the restaurant industry very badly."

"Somewhere, we have made mistakes and things haven't gone as planned. This is a wake-up call that we need to do 100x more for our restaurant partners than we have done before," he added.

What is Zomato Gold?

Zomato Gold is an exclusive dine-out and social drinking membership program that includes certain perks like a complimentary dish or up to 2 complimentary drinks depending on the restaurant. The benefits under the Zomato Gold programme are limited to select partner restaurants.

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"What's good for restaurants is good for Zomato. What's good for consumers is good for Zomato. Finding the right balance and product market fit is the restaurant industry's problem (and that includes us)," Goyal said in another tweet.

(With inputs from PTI)