Bengaluru Restaurants Threaten To Boycott Swiggy, Zomato From August 15 Over High Commissions, Deductions

Restaurant owners in Bengaluru have warned that they will stop accepting orders through swiggy & zomato from August 15.

Restaurant owners across Bengaluru have warned that they will stop accepting orders through Swiggy and Zomato from August 15 if their major concerns over high commissions, payment deductions and discount policies are not addressed.

The proposed boycott is being spearheaded by the Bruhat Bengaluru Hotels Association (BBHA) along with the Bengaluru Hotel Association, Karnataka Hotel Association and the National Restaurant and Bar Association (NRBA).

According to the associations, more than 1,000 hotels and restaurants across the city have extended support to the proposed action.

Restaurants Raise Concerns Over High Platform Charges

Restaurant associations argue that the current business model of food delivery platforms has become financially unsustainable for restaurants.

According to the associations, commissions charged by Swiggy and Zomato range from 8% to 28% depending on the restaurant and service category.

Apart from commissions, restaurant owners say they are also required to spend on platform advertisements, promotional campaigns, payment gateway charges and visibility-enhancing features to remain competitive on the apps.

BBHA President S. Subramanya Holla said that the cumulative deductions leave restaurants with shrinking margins, forcing many establishments to increase menu prices to remain viable.

Echoing similar concerns, P.C. Rao, Honorary President of the Bengaluru Hotel Association, alleged that restaurants generating Rs 1 lakh in orders through these platforms are often left with only around Rs 40,000 after accounting for commissions, discounts and various deductions.

Five Key Demands Of Restaurant Associations

The associations have submitted a list of demands to both Swiggy and Zomato, seeking greater transparency and fairer business practices.

Their key demands include:

No automatic payment deductions immediately after a customer complaint until the issue has been verified.
Restaurants should not bear the financial loss if customers cancel an order after the food has already been prepared.
Promotional campaigns, discounts and advertising spends should not be activated without the restaurant's explicit written consent.

Food delivery platforms should provide detailed, itemised monthly settlement reports explaining every deduction.

Each restaurant should be assigned a dedicated relationship manager to resolve payment disputes and operational issues quickly.

Restaurant owners say these measures would bring greater transparency and reduce financial uncertainty.

August 15 Deadline
The associations have sought a formal written response from Swiggy and Zomato before August 15.
They have warned that if no satisfactory resolution is reached by then, participating restaurants will suspend operations on both food delivery platforms and launch a citywide boycott.
Some restaurant owners have already indicated their willingness to act independently.
Restaurant owner Ajith Shetty Kiradi reportedly said he would stop accepting Swiggy orders if the company failed to address the concerns, while association representative Vasanth Giliyar said legal action could also be explored if discussions do not move forward.
Competition In India's Food Delivery Market
The standoff comes at a time when India's food delivery market is witnessing increased competition.
Several new players are preparing to enter the segment, including Rapido's "Ownly", Flipkart's upcoming food delivery platform, and ONDC-based food delivery services.
Some restaurant owners believe that greater competition could improve bargaining power for restaurants and eventually lead to lower commissions and better commercial terms.
Arun Adiga of Bengaluru's iconic Vidyarthi Bhavan said increased competition could benefit restaurant partners.
However, BBHA President S. Subramanya Holla rejected suggestions that the proposed boycott was linked to the arrival of new competitors. He maintained that the associations' objective is to create a fair and competitive marketplace rather than support any particular platform.
No Official Response Yet
As of July 29, neither Swiggy nor Zomato has publicly responded to the demands raised by the restaurant associations. With the August 15 deadline approaching, the outcome of discussions between the restaurant bodies and the food delivery platforms will determine whether Bengaluru witnesses one of the biggest coordinated restaurant boycotts against online food aggregators in recent years.