Bengaluru Restaurants Threaten Swiggy, Zomato Exit After August 15 Over Commission Dispute

A growing dispute between Bengaluru's restaurant industry and food delivery platforms Swiggy and Zomato has escalated, with restaurant associations warning of a potential boycott and citywide shutdown after August 15 if their concerns are not addressed.

Restaurant bodies have alleged that commissions, discounts and multiple deductions imposed by food delivery platforms are significantly impacting profitability. They are seeking a more transparent partnership model and have called for discussions with platform representatives before the deadline.

Among the key demands are an end to platform-led discounts without restaurant approval, greater transparency around advertisement charges, payment gateway fees and other deductions, and detailed settlement reports. Restaurant owners have also requested compensation for cancelled orders after food preparation, the removal of automatic deductions linked to customer complaints, an end to one-sided agreements and the appointment of dedicated relationship managers.

The associations have stated that restaurants may withdraw from both platforms if there is no resolution by August 15. They have also indicated that a citywide restaurant shutdown remains an option if discussions fail to produce results.

PC Rao, honorary president of the Bengaluru Hotel Association, alleged that Swiggy's "unscientific deductions" are causing heavy losses to restaurant operators. He claimed that restaurants generating Rs 1 lakh in sales through the platform are left with only around Rs 40,000 after commissions, discounts and other deductions.

Rao said the issue affects both restaurants and consumers. He added that the Bengaluru Hotel Association, Karnataka Hotel Association and the National Restaurant and Bar Association have joined the protest. According to Rao, restaurants are willing to continue working with Swiggy and Zomato if deduction structures are rationalised, but will exit the platforms after August 15 if no agreement is reached.

The standoff highlights ongoing tensions within India's food delivery ecosystem, where restaurants continue to push for improved economics and greater transparency as online ordering becomes an increasingly important sales channel.