Bengaluru: Restaurant owners in the city have raised concerns over alleged unauthorised discounts being applied on food delivery platforms Swiggy and Zomato, claiming the practice is leading to mounting financial losses.

Owners allege discounts applied without consent

According to multiple restaurateurs, discounts are being automatically applied to orders without prior approval. Nikhil Agarwal, owner of Bamey’s in Koramangala, said he discovered an ₹80 discount being offered on Swiggy orders without his consent.

He also reported facing a similar issue on Zomato, where discounts of up to 40 per cent were applied repeatedly over several months. “This has become way too common,” he said, highlighting the frequency of such incidents.

‘Duopoly’ makes opting out difficult

Restaurant owners say the dominance of Swiggy and Zomato creates a situation where opting out of discount schemes becomes challenging.

They allege that agreeing to a promotional offer on one platform often triggers similar or higher discounts on the other platform, sometimes without explicit approval. This results in a cycle where neither platform withdraws the offer unless the other does, leaving restaurants with limited control.

Losses running into lakhs

The financial impact of these practices has been significant. Amit Sharma, managing partner of the NH8 restaurant chain, reported losses of around ₹13 lakh due to auto-applied discounts across his outlets and cloud kitchens.

After pursuing the issue for nearly two years, Sharma said he received a partial refund of ₹10 lakh in March 2026. Following this, he chose to remove all his restaurants from the platform.

Industry body raises concerns

The National Restaurant Association of India (NRAI) has acknowledged receiving multiple complaints from restaurant owners in Bengaluru.

Ananth Narayan, the NRAI’s Bengaluru chapter head, said the issues include unilateral discounting, rising commission charges, unexplained deductions, and delays in payments.

He added that the association is currently in discussions with platform representatives to address these concerns and seek clarity on pricing and discount policies.

Growing tension between platforms and partners

The dispute highlights the ongoing friction between food delivery platforms and their restaurant partners. While platforms rely on discounts to attract customers and boost order volumes, restaurant owners argue that such practices should not come at their expense without consent.

Industry observers note that clearer contractual terms and transparency in billing and discount mechanisms are essential to maintaining trust between both sides.

Conclusion

As complaints continue to surface, the issue of unauthorised discounting has become a significant concern for Bengaluru’s restaurant industry. The outcome of discussions between the National Restaurant Association of India and delivery platforms will be crucial in determining whether corrective measures are introduced to protect restaurant partners.