Bengaluru: Restaurant owners in Bengaluru have warned of a possible boycott of online food delivery platform Swiggy from August 15, alleging that high commissions, compulsory discounts, advertising costs and other deductions are severely impacting their profitability.
Representatives of the restaurant community said they support online food delivery platforms but are seeking a more transparent and equitable business relationship that allows restaurants to operate sustainably.
Owners seek transparency in deductions
The restaurant owners said they bear the full cost of running their establishments, including raw materials, employee salaries, rent, electricity, cooking gas, licences, packaging and maintenance. They claimed that after Swiggy deducts commissions, promotional discounts, advertising charges and other fees, very little profit remains.
They also objected to discounts allegedly being introduced without their explicit consent and argued that restaurants are often compelled to pay for advertisements simply to remain visible on the platform.
The owners have demanded detailed settlement statements showing GST, taxes, commissions, discounts, refunds and every deduction separately. They also called for transparency in payment gateway charges, long-distance delivery fees and cancelled order deductions.
Fair policies and better support demanded
Restaurant representatives said businesses should not bear the entire financial loss when customers or delivery partners cancel orders after food has already been prepared. They also urged that payments should not be withheld solely on the basis of customer complaints without first verifying the restaurant’s version.
In addition, they sought dedicated support teams, faster grievance redressal, weekend assistance and an end to unilateral changes in contractual terms without consultation.
Boycott warning from August 15
Ajith Shetty Kiradi warned that if Swiggy fails to reach a fair agreement, restaurants across Bengaluru will boycott the platform from August 15, claiming that more than 1,000 hotels have already pledged support.
Naveen Shetty Airbailu said restaurants would stop accepting orders through Swiggy if the company did not respond to their demands. Vasanth Giliyar added that legal action could also be initiated if meaningful discussions were not held.
The restaurant owners have urged Swiggy’s management to engage directly with them and arrive at a mutually acceptable solution before the proposed boycott takes effect.