Restaurant associations have threatened to withdraw from Swiggy and Zomato and launch a citywide shutdown if concerns over commissions, discounts and payment deductions remain unresolved.
Restaurant owners in Bengaluru have warned of a possible boycott of food delivery platforms Swiggy and Zomato, alleging that high commissions, deep discounting and multiple deductions are significantly affecting their profitability.
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The restaurant associations have said they may stop using both platforms and even consider a citywide restaurant shutdown after August 15 if their concerns are not addressed through discussions with the companies.
Why are restaurants protesting?
According to restaurant associations, several charges imposed by food delivery platforms are reducing their earnings.
They claim that high commissions, platform-driven discounts and other deductions leave restaurants with a much smaller share of the revenue generated through online orders.
The associations are demanding a more transparent and balanced partnership model between restaurants and food delivery companies.
Key demands of restaurant associations
Restaurant owners have put forward several demands, including:
- No discounts should be offered without the restaurant’s consent.
- Greater transparency in advertisement charges and payment gateway fees.
- Detailed settlement reports for every transaction.
- An end to automatic deductions after customer complaints.
- Compensation for cancelled orders after food preparation.
- Review of one-sided contractual agreements.
- Appointment of dedicated relationship managers for restaurant partners.
The associations say these measures would improve trust and ensure a fairer business relationship.
Boycott warning after August 15
Restaurant bodies have urged Swiggy and Zomato to initiate discussions with industry representatives before the deadline.
If no agreement is reached, they have warned that participating restaurants could:
- Withdraw from both food delivery platforms.
- Launch a coordinated shutdown of restaurants across Bengaluru after August 15.
The associations maintain that their objective is to reach an amicable solution rather than disrupt services.
Industry bodies join the protest
According to P.C. Rao, Honorary President of the Bengaluru Hotel Association, the current commission structure and deductions are causing substantial financial losses for restaurant owners.
He alleged that a restaurant generating ₹1 lakh in sales through a food delivery platform may receive only about ₹40,000 after commissions, discounts and other deductions.
Rao also said that the issue affects customers as well as restaurant operators.
The protest is reportedly being supported by several industry organisations, including:
- Bengaluru Hotel Association
- Karnataka Hotel Association
- National Restaurant and Bar Association
Restaurants seek dialogue
Despite the strong warning, restaurant associations have indicated that they are willing to continue partnering with Swiggy and Zomato if their concerns are addressed.
They have called on both companies to hold discussions and rationalise commissions and deductions before the proposed August 15 deadline.
As of now, neither platform has officially announced any changes in response to the demands.
FAQ
Why are Bengaluru restaurants threatening to boycott Swiggy and Zomato?
Restaurant associations allege that high commissions, deep discounts and multiple deductions are reducing their profits and are seeking a more transparent partnership model.
What are the restaurants demanding?
They want transparent settlement reports, consent-based discounts, compensation for cancelled orders, an end to automatic deductions after customer complaints and fairer contractual terms.
When could the boycott begin?
Restaurant associations have said they may withdraw from Swiggy and Zomato and consider a citywide shutdown after August 15 if no resolution is reached.
Have Swiggy and Zomato responded?
At the time of writing, there has been no official announcement from either company regarding the demands made by the restaurant associations.
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