NRAI meets Union Minister Piyush Goyal over private labelling concerns

Representatives of NRAI highlighted challenges faced by the restaurant and food industry, minister assures support

Amidst the ongoing issue of private labelling between food aggregators, like Zomato and Swiggy, and restaurant associations, Union Minister of Commerce and Industry Piyush Goyal has assured the National Restaurant Association of India (NRAI) of swift action and necessary support for the sector’s growth.

 

Sagar Daryani, NRAI president, had met Goyal on Friday in New Delhi regarding the matter, highlighting the challenges faced by the restaurant and food service industry. NRAI vice- president Pranav M Rungta was also present during the meeting.

 

“We were able to candidly speak our mind and thank him for giving us his valuable time and a very patient hearing. He has promised us a quick action on all possible support and help needed for the betterment and growth of the sector,” Daryani posted on social media on Sunday.

 

During the meeting, Daryani highlighted the sector's significant contribution to the Indian economy, noting that the restaurant industry accounts for nearly 2 per cent of the country's GDP and contributes 1.5 per cent to GST revenues.

 

The NRAI top heads also presented the India Food Services Report 2024, which underscores the industry's rapid growth with a compound annual growth rate of over 13 per cent and its role as one of the largest job creators, employing over 5.5 lakh crore people directly.

 

“We even presented him the India Food Services Report 2024 and gave him a run down on the key metrics of the industry and its positive contribution to the economy,” Daryani added.

 

Despite the positive outlook, the restaurant industry continues to grapple with challenges, particularly with food aggregators Swiggy and Zomato, which have ventured into private-label offerings via Swiggy Snacc and Blinkit Bistro respectively, according to NRAI.

 

Apart from private labelling, some key concerns include high commission fees, lack of transparency, and deep discounting at the expense of restaurant margins.

 

In a recent interview, Magicpin's Chief Executive Officer and Co-Founder, Anshoo Sharma, addressed the ongoing debate surrounding private labelling in the food delivery industry. Sharma emphasised Magicpin's commitment to supporting local merchants, stating that the company will never operate dark stores or launch private-label food products.