In a recent revelation, Zomato’s founder and CEO, Deepinder Goyal, has emphatically stated that the popular food delivery platform has no intention of entering the restaurant business. Goyal’s remarks came during a candid conversation with celebrity chef Anahita Dhondy on his podcast, ‘Breaking Bread’.
Addressing the topic of Zomato potentially opening its own restaurants or cloud kitchens, Goyal expressed a firm stance against such a move, citing ethical concerns and the inherent challenges of the restaurant industry. “We don’t want to do restaurants. It’s a very hard business. We don’t want to compete with restaurants. Never. I think it’s not ethical to do it,” remarked Goyal.
Goyal’s sentiments underscore a commitment to maintaining Zomato’s role as a facilitator rather than a direct competitor to traditional eateries. He emphasized the importance of ethical business practices, acknowledging the symbiotic relationship between Zomato and its restaurant partners. “If we have built a platform working with you [restaurants], then we have sort of leveraged your presence to build this. We can’t go back and say ‘accha main bhi ye karoonga’ (I will also do it). It’s not ethical,” explained Goyal.
Despite hypothetical scenarios that might necessitate a shift in strategy, Goyal remained resolute in his stance, stating unequivocally, “Never. It’s been like: no chance.” He expressed deep respect for restaurant owners and chefs, recognizing the formidable challenges they face in running their establishments.
Goyal shed light on the misconception among some consumers that Zomato operates its own restaurants. He revealed that a significant percentage of users mistakenly attribute food quality issues to Zomato itself. “One of our largest negative reviews is: ‘I didn’t like the quality of food’. I think maybe 30-40% of the customers out there don’t really know that we don’t make the food. They think all the restaurants are Zomato restaurants,” Goyal shared.
Furthermore, Goyal highlighted the demanding nature of the restaurant business, cautioning aspiring entrepreneurs against underestimating its complexities. “I think a lot of people like when they get out of college or they want to quit a job, they say ‘yaar, restaurant kholna hai mujhe’ (I want to open a restaurant). And I am like ‘dude, that’s the hardest business ever made. So, please, don’t think about it as there’s so much more to it’,” he advised.