Marketing strategy lands hotelier in soup

Bangalore: Adiga’s Group of Hotels is accused of indulging in an unfair trade practice in the name of charity.

A consumer complaint has been lodged as the chain of hotels is charging Re 1 extra on each item on their menu, claiming that the money will go to charity.

“It was a smart marketing move by the group to add a rupee to each product saying it was meant for charity and collecting it from unsuspecting customers.

No doubt, they will give the money to charity, but why collect it from the customers?” said Narasimha­murthy, an activist who has lodged the complaint.

The hotel group has 21 outlets in the city and is in the process of setting up more units in many other cities as well.

Adigas decided that it will charge Re 1 extra on each item from October and this money would go to charity – meals for poor children, an initiative by Vasudev Adiga and Akshaya Patra.

They have printed pamphlets and even flaunted this scheme on their website. The scheme started since October last year.

“Typically, a person having breakfast would ask for a plate of idli, vada and tea, for which he will pay Rs 3 extra under this scheme. The hotel group is obviously running under profit, considering the number of outlets being opened by it. If they want to pursue charity, let them do it with their money, not with the customer’s money,” Narasimhamurthy told Deccan Chronicle.

He and 30 other activists tried to confront the management at the group’s Halsoor outlet office, but were stopped by the police, who had been summoned by the management.

The activists then filed a complaint of extortion against the hotel management at the Ulsoor police station.

“The hotel group had approached the high court to get the consumer complaint quashed, but we are glad that the court has dismissed their petition at the admission stage” said the activist.  “The case is coming up for hearing in the last week of January” he said.

When Deccan Chronicle spoke to hotel authorities, General Manager Srinath S. clarified that the price has been increased by Re 1 because of recent increase in the prices of raw materials.

“We were misunderstood when we promoted this scheme. We are not charging Re 1 from the customer towards charity. It is because of the general rise in prices and the passing on the accrued amount to Akashya Patra as charity,” he said.