Bengaluru: Restaurants across Bengaluru may stop accepting orders through Swiggy and Zomato after August 15, with industry bodies warning of a boycott if their concerns over high commissions, discount policies and settlement practices are not addressed.
The Bruhat Bengaluru Hotels Association (BBHA), along with other restaurant representatives, said they would submit a formal representation to the food delivery platforms, seeking a written response and corrective measures before the deadline.
Restaurants seek fair commission structure
BBHA President S. Subramanya Holla said restaurants currently pay commissions ranging from 8 to 10 per cent, with some establishments paying as much as 28 per cent.
He argued that such charges are unsustainable for businesses and eventually result in higher menu prices for customers.
“We have asked the online aggregators to streamline their commission structure and given them time until August 15. If there is no resolution, we will boycott the platforms,” Holla said.
Industry raises concerns over settlements
The restaurant bodies have also demanded greater transparency in payment settlements. Their key demands include ending automatic payment deductions after customer complaints, compensation for orders cancelled after food has been prepared, detailed settlement statements explaining deductions, removal of one-sided contract clauses and dedicated relationship managers.
The associations have also objected to discount campaigns and promotional offers being introduced without obtaining consent from restaurant partners.
According to P.C. Rao, Honorary President of the BBHA, commissions, advertising charges, payment gateway fees and other deductions have significantly reduced restaurant earnings, particularly affecting smaller establishments.
Call for greater competition
Holla rejected suggestions that the proposed protest was linked to the entry of new food delivery platforms. Instead, he said the industry was seeking greater competition in the market.
He noted that Rapido’s Ownly follows a zero-commission model, while Flipkart has indicated it may charge around 11 per cent, although both platforms will take time to establish themselves.
The BBHA also pointed out that a previous initiative to onboard restaurants onto the Open Network for Digital Commerce (ONDC) through GrowthFalcons failed to gain sufficient traction.