Bengaluru Restaurants Threaten To Boycott Swiggy, Zomato From August 15 Over High Commissions, Deductions

Restaurant owners in Bengaluru have warned that they will stop accepting orders through Swiggy & Zomato from August 15 if their major concerns over high commissions, payment deductions and discount policies are not addressed.

The proposed boycott is being carried out by the Bruhat Bengaluru Hotels Association (BBHA) along with the Bengaluru Hotel Association, Karnataka Hotel Association and the National Restaurant and Bar Association (NRBA).

According to the associations, more than 1,000 hotels and restaurants across the city are going to support the proposed action

Restaurants Raise Concerns Over High Platform Charges

Restaurant associations argue that the current business model of food delivery platforms has become financially unsustainable for restaurants.

According to the associations, commissions charged by Swiggy and Zomato range from 8% to 28% depending on the restaurant and service category.

Apart from commissions, restaurant owners say they are also required to spend on platform advertisements, promotional campaigns, payment gateway charges and visibility-enhancing features to remain competitive on the apps.

Top Demands Of Restaurant Associations

The associations have submitted a list of demands to both Swiggy and Zomato, asking for greater transparency and fairer business practices.

Their key demands include:

No automatic payment deductions immediately after a customer complaint until the issue has been verified.
Restaurants should not bear the financial loss if customers cancel an order after the food has already been prepared.
Promotional campaigns, discounts and advertising spends should not be activated without the restaurant’s explicit written consent.

Food delivery platforms should provide detailed, itemised monthly settlement reports explaining every deduction.

Each restaurant should be assigned a dedicated relationship manager to resolve payment disputes and operational issues quickly.

No Official Response Yet

As of July 29, neither Swiggy nor Zomato has publicly responded to the demands raised by the restaurant associations. With the August 15 deadline approaching, the outcome of discussions between the restaurant bodies and the food delivery platforms will determine whether Bengaluru witnesses one of the biggest coordinated restaurant boycotts against online food aggregators in recent years.