Sodexo, Star Bazaar reach deal on meal passes

In a climbdown of sorts, Star Bazaar, run by Tata-owned Trent, has become the first to again accept and Ticket Restaurant meal passes.

They and other retail chains — Pantaloon, Reliance, Aditya Birla, Spencer's, etc — had stopped accepting the passes in lieu of goods bought by shoppers at their hypermarkets from the beginning of this month. The retailers had an issue with the providers over the commission charged.

"The meal pass providers have decided to lower the commission and we (Star Bazaar) have started accepting the passes from today,” said a person who works with the chain. When asked, a spokesperson said: “Star Bazaar does not wish to comment.”

According to sources, the Raheja-owned Hypercity is still accepting the passes from shoppers and is in talks with providers over the commission. Sodexo charges 2.9-3.4 per cent to retailers on the bill, depending on volumes generated.

Retailers do not generate large volumes from the passes. Big Bazaar, the largest hypermarket chain, makes two per cent of its sales from these coupons. They argued they could not afford such commissions, given the thin margins in the goods and grocery business, of two to three per cent.

The response of other hypermarkets could not be ascertained. A senior executive with a city-based chain said: “I think most of the chains will start now and providers will have to reduce commissions.”

Amitabh Sinha, vice-president, marketing, Sodexo India, said: “We are engaging with all retailers. However, nothing has been concluded.” Sinha said the company was evaluating new service offerings as it expanded to new locations. “A few retailers leaving us will not impact our business,” he said, adding, “We have not increased our commission in the last two years and nor has the payment time been increased with any of these retailers.” According to Sinha, payments are made timely, by bilateral commercial agreement. Sodexo has a network of around 18,000 outlets and is expanding.

Another meal pass provider, Edenred, said the company maintained a long-standing and mutually beneficial relationship with retailers. According to an Edenred spokesperson, “With all our affiliates, acceptance of Ticket Restaurant Meal Vouchers is subject to a contractual agreement and the commercials are very well stated therein.” He added that “commercial issues between partners in such a partnership is nothing unusual”. Edenred is in an ongoing discussion with some of them (retailers) and its endeavour would be to continue the association with them as far as possible, the spokesperson said.

(With inputs from Kalpana Pathak)

image
Business Standard
177 22
Business Standard

Sodexo, Star Bazaar reach deal on meal passes

Raghavendra Kamath  |  Mumbai 



In a climbdown of sorts, Star Bazaar, run by Tata-owned Trent, has become the first to again accept and Ticket Restaurant meal passes.

They and other retail chains — Pantaloon, Reliance, Aditya Birla, Spencer's, etc — had stopped accepting the passes in lieu of goods bought by shoppers at their hypermarkets from the beginning of this month. The retailers had an issue with the providers over the commission charged.

"The meal pass providers have decided to lower the commission and we (Star Bazaar) have started accepting the passes from today,” said a person who works with the chain. When asked, a spokesperson said: “Star Bazaar does not wish to comment.”

According to sources, the Raheja-owned Hypercity is still accepting the passes from shoppers and is in talks with providers over the commission. Sodexo charges 2.9-3.4 per cent to retailers on the bill, depending on volumes generated.

Retailers do not generate large volumes from the passes. Big Bazaar, the largest hypermarket chain, makes two per cent of its sales from these coupons. They argued they could not afford such commissions, given the thin margins in the goods and grocery business, of two to three per cent.

The response of other hypermarkets could not be ascertained. A senior executive with a city-based chain said: “I think most of the chains will start now and providers will have to reduce commissions.”

Amitabh Sinha, vice-president, marketing, Sodexo India, said: “We are engaging with all retailers. However, nothing has been concluded.” Sinha said the company was evaluating new service offerings as it expanded to new locations. “A few retailers leaving us will not impact our business,” he said, adding, “We have not increased our commission in the last two years and nor has the payment time been increased with any of these retailers.” According to Sinha, payments are made timely, by bilateral commercial agreement. Sodexo has a network of around 18,000 outlets and is expanding.

Another meal pass provider, Edenred, said the company maintained a long-standing and mutually beneficial relationship with retailers. According to an Edenred spokesperson, “With all our affiliates, acceptance of Ticket Restaurant Meal Vouchers is subject to a contractual agreement and the commercials are very well stated therein.” He added that “commercial issues between partners in such a partnership is nothing unusual”. Edenred is in an ongoing discussion with some of them (retailers) and its endeavour would be to continue the association with them as far as possible, the spokesperson said.

(With inputs from Kalpana Pathak)

RECOMMENDED FOR YOU

Sodexo, Star Bazaar reach deal on meal passes

In a climbdown of sorts, Star Bazaar, run by Tata-owned Trent, has become the first hypermarket chain to again accept Sodexo and Ticket Restaurant meal passes.

In a climbdown of sorts, Star Bazaar, run by Tata-owned Trent, has become the first to again accept and Ticket Restaurant meal passes.

They and other retail chains — Pantaloon, Reliance, Aditya Birla, Spencer's, etc — had stopped accepting the passes in lieu of goods bought by shoppers at their hypermarkets from the beginning of this month. The retailers had an issue with the providers over the commission charged.

"The meal pass providers have decided to lower the commission and we (Star Bazaar) have started accepting the passes from today,” said a person who works with the chain. When asked, a spokesperson said: “Star Bazaar does not wish to comment.”

According to sources, the Raheja-owned Hypercity is still accepting the passes from shoppers and is in talks with providers over the commission. Sodexo charges 2.9-3.4 per cent to retailers on the bill, depending on volumes generated.

Retailers do not generate large volumes from the passes. Big Bazaar, the largest hypermarket chain, makes two per cent of its sales from these coupons. They argued they could not afford such commissions, given the thin margins in the goods and grocery business, of two to three per cent.

The response of other hypermarkets could not be ascertained. A senior executive with a city-based chain said: “I think most of the chains will start now and providers will have to reduce commissions.”

Amitabh Sinha, vice-president, marketing, Sodexo India, said: “We are engaging with all retailers. However, nothing has been concluded.” Sinha said the company was evaluating new service offerings as it expanded to new locations. “A few retailers leaving us will not impact our business,” he said, adding, “We have not increased our commission in the last two years and nor has the payment time been increased with any of these retailers.” According to Sinha, payments are made timely, by bilateral commercial agreement. Sodexo has a network of around 18,000 outlets and is expanding.

Another meal pass provider, Edenred, said the company maintained a long-standing and mutually beneficial relationship with retailers. According to an Edenred spokesperson, “With all our affiliates, acceptance of Ticket Restaurant Meal Vouchers is subject to a contractual agreement and the commercials are very well stated therein.” He added that “commercial issues between partners in such a partnership is nothing unusual”. Edenred is in an ongoing discussion with some of them (retailers) and its endeavour would be to continue the association with them as far as possible, the spokesperson said.

(With inputs from Kalpana Pathak)

image
Business Standard
177 22
Widgets Magazine

More News

Widgets Magazine
Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard