Bengaluru: A growing dispute between Bengaluru’s restaurant industry and food delivery platform Swiggy is approaching an August 15 deadline, with restaurant owners warning that they may withdraw from the platform unless their concerns are addressed.
The proposed action is not yet a confirmed boycott. Restaurant associations have made it conditional on the outcome of discussions over commissions, discounting practices and several deductions that they say are putting pressure on restaurant earnings.
At the centre of the disagreement is the financial relationship between food delivery platforms and their restaurant partners. Owners have called for a partnership they describe as fairer and more transparent, particularly when it comes to discounts, advertising expenses and payment gateway charges.
They have also asked Swiggy not to introduce discounts without first securing approval from the restaurants expected to fund or absorb them.
Restaurants seek clarity on deductions
The associations have raised several operational demands. They want platforms to stop automatically deducting money immediately after a customer complaint and say restaurants should not be made to bear the loss when an order is cancelled after the food has already been prepared.
Restaurant owners are also seeking detailed settlement statements that clearly explain every deduction made from their payments. Other demands include removing one-sided conditions from agreements and assigning dedicated relationship managers who can respond to restaurant-specific concerns.
The demands reflect dissatisfaction not only with the amount being deducted, but also with how those deductions are communicated and challenged. For many restaurants, the dispute appears to be about having greater control over pricing decisions and receiving a clearer account of what they ultimately earn from each order.
August 15 set as deadline for talks
The restaurant groups have asked Swiggy’s management to meet their representatives and work towards a settlement. They have warned that restaurants could leave the platform and proceed with a citywide shutdown if an acceptable solution is not reached by August 15.
P.C. Rao, Honorary President of the Bengaluru Hotel Association, has alleged that the existing deduction system is financially damaging for restaurant businesses.
According to Rao, a restaurant generating business worth ₹1 lakh through a delivery platform may be left with only about ₹40,000 after commissions, discounts and other deductions. The figure represents the association’s claim and has been presented as an example of the financial pressure restaurant owners say they are facing.
Rao said the concerns have brought together the Bengaluru Hotel Association, the Karnataka Hotel Association and the National Restaurant & Bar Association. The groups are seeking changes that would allow restaurants to continue working with delivery platforms without what they consider unfair financial deductions.
Zomato exit may also be considered
Although the immediate warning is directed at Swiggy, Rao said restaurant owners could also consider withdrawing from Zomato after the August 15 deadline if their broader concerns remain unresolved.
He maintained that restaurants are willing to continue their association with Swiggy if the disputed deductions are stopped. Any decision to leave either platform, however, remains dependent on whether the restaurant groups and the companies can reach an agreement.
The coming discussions will therefore determine whether the dispute results in a large-scale platform exit or is resolved through changes to fees, discounts and settlement practices.
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