Sep 25, 2018
Food delivery platforms set to lose 'secret kitchen' recipe
Ordered an exotic dish on a food delivery app after looking up bright food photographs reading rave reviews about the fancy named restaurant?
Chances are the restaurant may be an unhygienic sweat shop operating out a home kitchen tucked inside a winding lane of slum.
Thousands of such set-ups may be impacted as the Food Safety and Standards Authority of India (FSSAI), had in July asked food delivery platforms to delist food business operators (FBOs) that are not registered and or do not have a FSSAI licence.
This would also hit revenues of the online food delivery platforms like Zomato, Swiggy, UberEats and Foodpanda as such secret kitchens and eateries would go out of the system.
The delisting process was kick-started by online food delivery platforms earlier this month and the exercise is expected to be completed by end of September.
According to industry sources, nearly half of such FBOs would be delisted from various food delivery platforms. "The FSSAI directive will impact approximately 50% of the food business operators more so the secret kitchens in addition to those who are testing waters on such platforms. Delisting will also mean no revenues from these FBOs untill they are re-listed on the food delivery platforms and that will take some time to happen," said an industry expert.
Sources told DNA Money that FBOs typically pay 20% commission to online ordering and food delivery platform for various services offered. These platforms proved to be a great sales tool for the sweat shops which do not have to invest in state-of-the-art kitchens, hire skilled cooks and lease premises at a prominent location to operate from.
"While enjoying high ratings on the food delivery platforms, a lot of the secrect kitchens lacked basic food safety and hygiene standards as they operated from a desolate location. Using names similar to popular joints to lure customers is another often used strategy on online platforms," said a food industry executive, adding that some of the listed FBOs were operating from places like Malwani, a densely populated slum in Malad, Mumbai.
While re-listing the FBOs, when they become FSSAI compliant, could re-start the flow of revenues for food delivery platforms at a later stage, it may still lead to a reduction in revenues.
"What percentage of the delisted FBOs will come back on the food delivery platforms is an area of concern. That's because not every FBO would want to go through the hassle of incurring costs on dealing with a food safety officer or for that matter conforming to FSSAI guidelines. The delisted FBOs could go back to conducting business sans online food delivery platforms," said a top industry executive.
When contacted, food delivery platforms – Zomato, Swiggy, UberEats, Foodpanda – did not share specific details such as total number of FBOs being delisted from their respective platforms and resultant impact on their businesses.
In an email response to DNA Money queries, Mohit Gupta, chief executive officer - food delivery business, Zomato, said, "We are in the process of delisting hundreds of restaurants, across the 34 cities in India where we offer our online ordering and food delivery services. Most of our high order volume restaurant partners currently have or have applied for their FSSAI licences. We are certain this move will not have an impact on our order volumes."
Industry sources said that revenues of Zomato, which currently lists 50,000 FBOs on its platform, will be the most impacted as a result of the delisting mandate. According to a recent Registrar of Companies filing, Zomato ended fiscal 2018 with 40% growth in revenues to Rs 466 crore. Its losses were down 73% on year to Rs 106 crore in fiscal 2018.
"That may not be the case next year. Zomato will have to work overtime to maintain same levels of growth for fiscal 2019," said one of the sources.
Starting July 2018, Swiggy has delisted hundreds of restaurants that are not compliant with FSSAI regulations or have poor customer ratings, its spokesperson said.
"Currently, over 75% of the restaurants listed on the platform already have an FSSAI licence/ acknowledgement and we are well on track to complete the rest by the due date. To help speed up the process, we have set up an FSSAI Assist Programme to assist all non-compliant restaurants to procure their licences," said the Swiggy spokesperson.
According to Zomato, which currently lists over 50,000 eateries on its platform, the extension offered to high-rated food delivery partners is until the end of this month. "If they fail to furnish or apply for FSSAI licences within the stipulated period, we will delist them from our platform. We would be happy to re-list them as and when they furnish their licences," he said, adding that the company has onboarded thousands of new restaurant partners in the last two months.
Following complaints of sub-standard food being served through some of the platforms, FSSAI in July had mandated delisting of non-compliant FBOs by July 31, 2018. The notices were sent to Swiggy, UberEats, Zomato, Box8, Fasso's, FoodCloud, Foodmongo, Foodpanda, Justfood and LimeTray. Later in August, FSSAI said that 40% of the FBOs had failed to obtain licence within its deadline. The delisting process was kick-started in the first week of this month, which would be reviewed by FSSAI this month itself.
UNPALATABLE DISH
20% Commission on revenues eateries pay to food apps
40% of FBOs had failed to obtain licence despite a FSSAI deadline
Possible permissible limit for formaldehyde to be studied
Due to the controversy over formalin-in-fish, advisor (quality assurance) at FSSAI, Bhaskar N, said they have sought a scientific panel’s opinion on this.
He was addressing a press conference on Monday held along with health minister Vishwajit Rane and scientists at the Central Institute of Fisheries Technology (CIFT).
Goa saw a huge controversy erupt over the presence of formalin in fish after the directorate of food and drugs administration (FDA) talked about “permissible limit” of the chemical in fish.
While it corrected its stand soon after the FSSAI categorically stated that there is nothing called permissible limit for formalin in fish, the controversy is yet to die down. Once the results are received, it is assumed there will be some closure to the whole issue, and clarity on the issue.
The fish is good to eat
PANJIM: The Food Safety and Standards Authority of India (FSSAI) and Central Institute of Fisheries Technology (ICAR-CIFT) has given a clean chit to the fish available in Goan market stating it to be chemical-free.
The expert body has also maintained that one cannot conduct rapid test to determine formaldehyde presence in fish using a bare-hands, as done by the Congress party during their recent demonstration in Margao fish market. Stating that there is no standard called ‘permissible limit’, the FSSAI said that marine fish naturally contains certain amount of formaldehyde. The regulatory body has urged scientist panel to set the limit of naturally contain formaldehyde in fish so as to make necessary amendment into the guidelines.
ICAR-CIFT, who has developed the rapid test kit to help regulators to instantaneously determine the adulterated fish, along with team of FDA on Monday conducted random checks of fish samples in Margao and Panjim fish market. They also tested fish from the Margao wholesale market. All the samples were tested negative of formalin. Health Minister Vishwajit Rane was also part of the team that conducted the tests. Addressing media persons, ICAR-CIFT scientist Lali S Jawahar said that one cannot conduct the test using bare hands as our hands are not cleaned. “One needs to use proper protection while conducting the test. If the test paper comes in contact with water or bare hands or other polluting substance, then it will change the colour,” she explained as he made demo presentation before media.
“If there is added formaldehyde, then the colour changed dark green within 30 seconds. The normal change in colour is between 1 to 1.20 minu
ACOAM Lup bans DAS bakery
IMPHAL | Sept 24 : ACOAM Lup has banned DAS bakery and appealed the people to stop buying and consuming their products in the state.
While speaking to media person at its office, general secretary of ACOAM Lup, Shanta Mangang said that the organisation on its visit to DAS Bakery, Babupara found that the bakery has been stamping the manufactured dates of their products in advance dates.
While questioning the negligence of the food safety authority, he further said that ACOAM Lup is compelled to take up the step because the food safety department has failed to do their duty.
Being a cultural organisation and whistle-blower, ACOAM Lup has submitted a formal complaint letter to the food safety officer for cancellation of Food Safety and Standards Authority of India License and take up necessary action against DAS bakery, said Shanta.
Delhi HC bans slaughter at Ghazipur Mandi
The petitioner requested the court to direct the Commissioner of the Food Safety Department to stop illegal slaughter of poultry in the national capital.
Delhi High Court bannned the poultry slaughtering in Ghazipur Murga Mandi on Monday. A bench of Chief Justice Rajendra Menon and Justice V. Kameswar Rao, however, allowed sale of live chicken at the market and listed the matter for further hearing on October 29.
The court asked the authorities to file an affidavit indicating a plan to set up a designated slaughter house in the area.
The order came on a report filed by the Delhi Pollution Control Board which has raised violation of animal welfare laws at the Mandi and sought its closure. The court turned down the plea.
"We are concerned with the larger issue of pollution in the area," the judges said.
The court was hearing a plea filed by animal rights activist Gauri Maulekhi, who alleged that there was indiscriminate violation of animal rights and blatant abuse of animal welfare laws at the Mandi.
Maulekhi said the poultry were openly slaughtered in the Ghazipur market without obtaining any licence.
The petitioner requested the court to direct the Commissioner of the Food Safety Department to stop illegal slaughter of poultry in the national capital and that all such slaughter should be done in compliance with the Food Safety and Standards Authority of India (FSSAI) Licence and Registration Regulation.
The counsel also sought a committee for weekly inspections at the Mandi to ensure that there was no violation of the Prevention of Cruelty to Animals Act.
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