A growing number of restaurant owners in India are expressing frustration with food delivery platforms, with a recent industry survey revealing that around 35% of eateries would choose to quit these apps if given the option. While platforms such as Zomato and Swiggy have transformed how customers order food, the relationship between aggregators and restaurants is increasingly marked by tension over costs and control.

Rising commissions hit margins

The most common grievance cited by restaurant operators is the steady rise in commissions charged per order. Over the past few years, average commission rates have climbed sharply, with restaurateurs saying a growing share of their revenue now goes to delivery platforms.

For small and medium-sized eateries in particular, these charges significantly thin margins. Owners say that even when order volumes increase, profitability often does not follow. Many report having to absorb higher operational costs—such as packaging, discounts and promotions—on top of platform commissions, making it harder to sustain their businesses.

Other key pain points

Beyond commissions, restaurants highlighted several additional challenges in working with delivery apps:

  • Limited customer support: Operators complain of slow or inadequate responses when disputes arise over order errors, cancellations or customer complaints.
  • Lack of customer data: Restaurants say they receive little access to customer information, preventing them from building direct relationships or loyalty programmes.
  • Low net profitability: After accounting for platform fees and operating expenses, many eateries find that net profits remain modest despite steady online demand.

Together, these issues have led roughly one in three restaurants to consider exiting food delivery platforms altogether.

Why most restaurants still stay

Despite mounting dissatisfaction, the majority of restaurants continue to partner with apps due to the advantages they offer. Being listed on major platforms provides greater visibility, helping eateries reach customers beyond their immediate locality. Delivery apps also generate higher order volumes, especially for smaller outlets without their own delivery infrastructure.

Additionally, platforms enable restaurants to expand their reach without investing heavily in logistics, riders or technology—an option that remains financially unviable for many independent operators.

A strained but dependent relationship

The survey highlights a growing trade-off in India’s food delivery ecosystem. While restaurants depend on aggregators for growth and visibility, many feel increasingly squeezed by the cost of participation. Industry observers say the findings underline the need for a more balanced model—one that supports restaurant sustainability while preserving the convenience consumers have come to expect.