“We are meeting with the Commerce Ministry soon and have requested an expedited appointment to discuss this serious issue. The actions of platforms like Zomato and Swiggy represent a direct violation of established e-commerce regulations. These companies were originally designed to function as neutral marketplace platforms, connecting consumers with restaurants, not as direct competitors. By introducing and selling their own food products, they undermine the very essence of a marketplace model, creating an uneven playing field that disproportionately harms restaurants.

What is particularly alarming is the use of years' worth of proprietary data—collected from restaurants on customer preferences, order history, and sales trends—to develop and promote their own branded products. Restaurants are excluded from access to this data, making it even more challenging for them to compete. This creates a dangerous environment for small and medium-sized enterprises and raises significant ethical and legal concerns around the misuse of sensitive data.

Additionally, there are serious questions surrounding the food safety standards applied to these private label products. While restaurants are subject to stringent safety regulations, there is no transparency regarding whether the same standards are being enforced for products sold by these platforms. The lack of fairness and a level playing field exacerbates the challenges faced by our members, making it difficult for them to survive, let alone thrive, in this competitive landscape. This not only risks consumer trust but also threatens the reputation of the entire restaurant industry,”.