‘Unethical practices’: Jaipur sweet shops say no to Zomato over commissions, discounts

Accusing Zomato of “unethical practices” and “lack of transparency”, major sweet shops in Jaipur have boycotted the platform “indefinitely” till their concerns are resolved. Announcing the boycott, Shri Halwai Samiti, a top body which includes all the prominent halwais of Jaipur, has said that Zomato’s practices are “financially unviable.” Ajay Agarwal, proprietor of famous Laxmi Misthan Bhandar (LMB), which claims to be as old as Jaipur (established 1727), said, “When Zomato started in 2015-2016, they had said that they are just a logistic partner for delivery, and it was at zero commission.

Now it is up to a minimum of 10-12 per cent to 25 per cent.” The Indian Express sent a questionnaire to Zomato where a representative sought time to respond. The Samiti, established in 1942, said that Zomato had called a meeting last month where they had assured to resolve all the problems at the earliest.

The Samiti submitted a formal representation to Zomato via email, demanding a reduction in “unreasonable commissions” and request for a meeting but there was allegedly no acknowledgement. “There has been no acknowledgement, let alone a resolution,” Agarwal said.

Samiti’s president and proprietor of Rawat Misthan Bhandar (RMB), Rajendra Rawat, said they have reached out to Zomato multiple times through letter and mail but there has been no response. “If you are charging 25 per cent from one business and 35 per cent from another, it is not good; the customer has to pay.

And if reputed businessmen are saying something, you have to listen.” The Samiti includes about 60 prominent sweet shops and restaurants in Jaipur including LMB, RMB, Bombay Misthan Bhandar, Doodh Misthan Bhandar, Kanha, Sodhani Sweets, Bhagat Mishthan Bhandar, Agarwal Caterers, Kanji, Kesar Sweets, etc.

Agarwal said that together, the stores do a business of about Rs 50 lakh daily with just Zomato alone. He said that thanks to the new generation which is tech savvy, there has been a rise in the online market but despite this, “the situation is such that either they have to address or we have to shut down (the online business with Zomato).” The Samiti members say that they have requested Zomato to rationalise its commissions to a uniform percentage for sweets and related categories in the market, citing the unique pricing dynamics and intense competition faced by sweet shops in the city.

This, along with “highly price-sensitive consumers”, has led to Jaipur's low online sweets sales, they say, adding that they are “open to constructive dialogue.” Following the boycott, the national Federation of Sweets and Namkeen Manufacturers (FSNM) has also written to Zomato seeking a meeting “to discuss and better understand certain commercial and operational concerns being increasingly raised by our members and other mithai, namkeen, bakery and allied food businesses using the Zomato platform.” “The recent developments involving restaurant businesses in Bengaluru, followed by concerns and collective action now being reported to us directly by leading mithai businesses in Jaipur, indicate that these issues may no longer be restricted to an individual business or a particular city,” FSNM said through its Director General Firoz Naqvi.

Hamza Khan is a seasoned Correspondent for The Indian Express, specifically reporting from the diverse and politically dynamic state of Rajasthan. Based in Jaipur, he provides high-authority coverage on the state's governance, legal landscape, and social issues, directly supporting the "Journalism of Courage" ethos of the publication.

Expertise Politics & Governance: Comprehensive tracking of the Rajasthan Legislative Assembly, including policy changes (e.g., the Right to Health Bill and Anti-Mob Lynching Bills), bypoll dynamics, and the shifting power structures between the BJP and Congress.

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