Many Supermarkets are refusing to take Sodexho coupons, what would be the next best alternative to Sodexho Meal Coupons
From India, Hyderabad
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From India, Hyderabad
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Supermarkets refuse to accept Sodexo, as there is an increasing number of fake coupons. The best solution would be to issue a Sodexo Card, something similar to Cash Cards. This card can be topped up on a monthly basis based on the corporate's input.
From India
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From India
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I don't know if this is true or not, but I have heard that Sodexo is not paying these stores on time, and there have been delays in payment for more than 3 months at times. So, issuing a Sodexo card will not serve the purpose.
Thank you.
From India, Delhi
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Thank you.
From India, Delhi
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Sodexo: Who exactly is Sodexo? Sodexo is a French multinational corporation. Sodexo is one of the largest food services and facilities management companies in the world, with 380,000 employees representing 130 nationalities, present on 34,000 sites in 80 countries. They are the biggest beneficiary in this transaction. Since this is almost like a parallel currency, they have to invest a lot of money upfront to get the govt. machinery working in passing certain laws. They make money in three ways:
a) They receive Rs.100/- worth of coupons while giving back only Rs. 95/- in cash, netting a straight 5% gain.
b) Sodexo coupons usually come with an expiry date (think of it as a currency with an expiry date *shudder*). Once it's expired, no retail store would accept it, and it becomes null and void. However, Sodexo had already received the money from your company when they issued the coupon (and hence a 100% profit!). There is a complex process through which you can get new coupons issued, but most people would not have the time or the patience to go through the process for getting the new coupons.
c) The biggest of them all. They get money at 0% interest. Have a look at the diagram once again. Day 1, they receive Rs. 100/-. Day 24-34, they give back Rs. 95/-. That is, they have had the money for a full 20-30 days without paying any interest. In fact, till the coupon is used, it is practically free money (and they can lend this money at interest, thereby making money).
So, if this was a win-win-win-win arrangement for all the folks involved, why did the retail store chains suddenly stop taking Sodexo coupons in lieu of items?
There is no clarity on what exactly happened, but here are the news items floating around -
a) They have increased the brokerage from 5% to 9%. That is, the retail chains used to get back Rs. 95/- of their money, but in the revised scenario, would get back Rs. 91/-. Already under pressure for margins, this was not acceptable by retail chains. Presumably, they formed a clique and stopped taking the coupons across the table.
b) The number of days in which cash conversion happens has gone up from 20 days to close to 60 days, thereby impacting the cash cycle of organizations.
From India, Delhi
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a) They receive Rs.100/- worth of coupons while giving back only Rs. 95/- in cash, netting a straight 5% gain.
b) Sodexo coupons usually come with an expiry date (think of it as a currency with an expiry date *shudder*). Once it's expired, no retail store would accept it, and it becomes null and void. However, Sodexo had already received the money from your company when they issued the coupon (and hence a 100% profit!). There is a complex process through which you can get new coupons issued, but most people would not have the time or the patience to go through the process for getting the new coupons.
c) The biggest of them all. They get money at 0% interest. Have a look at the diagram once again. Day 1, they receive Rs. 100/-. Day 24-34, they give back Rs. 95/-. That is, they have had the money for a full 20-30 days without paying any interest. In fact, till the coupon is used, it is practically free money (and they can lend this money at interest, thereby making money).
So, if this was a win-win-win-win arrangement for all the folks involved, why did the retail store chains suddenly stop taking Sodexo coupons in lieu of items?
There is no clarity on what exactly happened, but here are the news items floating around -
a) They have increased the brokerage from 5% to 9%. That is, the retail chains used to get back Rs. 95/- of their money, but in the revised scenario, would get back Rs. 91/-. Already under pressure for margins, this was not acceptable by retail chains. Presumably, they formed a clique and stopped taking the coupons across the table.
b) The number of days in which cash conversion happens has gone up from 20 days to close to 60 days, thereby impacting the cash cycle of organizations.
From India, Delhi
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@Sumit, I think your info is half-baked. What about Accor? Credit card selling at 2.5-3% commission, American Express charges at 4%. The dispute is only for delayed payment. I think the story of 9% commission is not believable.
Pon
From India, Lucknow
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Pon
From India, Lucknow
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I agree with the point raised by Sumit; let the numbers be validated by experts here. @Pon1965, you should not compare credit cards with food coupons. Credit cards offer a lot of convenience and instant loans (if I may say so) to their customers. Sodexo/Accor offer nothing to the customer; they simply survive on tax exemptions. Remove the exemption, and then you will see how many people would prefer food coupons. Someone should stop these individuals from selling parallel currency.
From India, Bangalore
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From India, Bangalore
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Food coupons are designed for tax savings. If such facilities are removed, how will anyone opt for such coupons instead of paying by cash or debit cards? The less said about credit cards, the better, as it may lead you into becoming a permanent debtor. We are not discussing the advantages of food coupons over credit card usage but rather focusing on tax-saving aspects.
Pon
From India, Lucknow
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Pon
From India, Lucknow
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Completely agree with Pon here. The issue is here for the common man already hit by inflation and now by the policies of organizations whose self-proclaimed motto is 'customer is the king' but actions far away from it. It is quite unconvincing that the stores have stopped these coupons due to a so-called increase in commission by meal voucher companies as I continue to use my ticket restaurant vouchers in my neighborhood outlet without any issues. I am sure that these coupons ensure that a committed base of customers is directed to the big retail outlets since they have a relatively small network. It probably also brings in incremental business to them since, for example, whenever I shop at these outlets, I end up picking up much more than just the value of the vouchers. With this kind of a win-win model, I am of the opinion that this is just a temporary phase and these retailers will start accepting meal vouchers soon. Just that the big retail outlets need to reach a decision which favors.
From India, Pune
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From India, Pune
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