Zomato to do physical inspection of cloud kitchens serving more than 10 brands

26 Sep 2022 , 11:35 AM

Food aggregator Zomato announced that it would physically check cloud kitchens, which manage more than 10 brands from a single location, in an effort to prevent operator fraud. Even the most organized outlets in the sector, according to Zomato, “don’t perceive operational benefits and customer trust in operating too many brands from a single kitchen,” even though there is no exact science to the ideal amount of brands.

According to recent statements made by the government agency Food Safety and Standards Authority of India (FSSAI), cloud kitchen firms are allowed to operate multiple brands under a single FSSAI license.

It was argued that certain fly-by-night operations, which account for less than 0.2% of licensed kitchens, abuse this legal leeway by launching dozens of brands from a single kitchen. 

According to Zomato, these firms sell products with little to no differentiation; instead, they deceive or confuse clients by giving them the impression that there are many options when there aren’t any.

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