Bengaluru: Restaurant owners across Bengaluru have voiced strong concerns over what they describe as an unfair and non-transparent commission structure followed by online food delivery platforms such as Swiggy and Zomato. While acknowledging that the platforms have helped them reach a wider customer base, hoteliers say rising commissions and multiple charges are eroding profits and forcing them to increase menu prices for online orders.
Restaurants say online prices are driven by commissions
According to restaurant owners, the growing gap between dine-in and online prices has become a major concern for both businesses and customers. Raghavendra Padukone, founder of the By2 Coffee chain, said customers often question why an item that costs around ₹30 at a restaurant can cost nearly ₹90 when ordered through a food delivery app.
He explained that the higher online price is not solely due to restaurant pricing but is influenced by commissions, platform fees, delivery charges, promotional costs and other deductions imposed by aggregators. As a result, many restaurants are left with shrinking profit margins despite strong order volumes.
Industry seeks transparent billing model
Hotel owners have urged food delivery companies to introduce a more transparent billing and commission structure that is fair to both restaurants and consumers. They argue that the current system has become increasingly difficult for small and medium-sized eateries, which already face rising operational costs.
The concerns come at a time when both Swiggy and Zomato have also increased platform fees charged to customers, adding to the overall cost of ordering food online.
Boycott warning if concerns remain unresolved
Restaurant associations in Bengaluru have warned that they may stop accepting orders through Swiggy and Zomato if issues related to commissions, discount policies and additional charges are not resolved. They have reportedly given the platforms a deadline to address their grievances, signalling growing tensions between food delivery aggregators and restaurant owners.
Restaurant owners maintain that while online delivery platforms remain an important source of business, a more balanced and transparent partnership is essential to ensure the long-term sustainability of the food service industry.