Bengaluru: Restaurants warn of Swiggy-Zomato boycott over discounts, commissions

Bengaluru’s restaurant owners have warned of a possible showdown with food delivery giants Swiggy and Zomato. They have threatened a boycott of the platforms and a citywide restaurant shutdown after August 15 if their demands are not met.Restaurant associations allege that high commissions, deep discounts, and multiple deductions by food delivery platforms are hurting restaurant profits. They have demanded a fairer and more transparent partnership model.Restaurants want platforms to stop offering discounts without their consent. They have also sought transparency in advertisement charges, payment gateway fees and other deductions.Their key demands include stopping automatic deductions after customer complaints, compensating restaurants for cancelled orders after food preparation, providing detailed settlement reports, ending one-sided agreements, and appointing dedicated relationship managers.The associations have urged Swiggy and Zomato to hold talks with restaurant representatives. They warned that restaurants will exit the platforms and begin a citywide shutdown if there is no resolution by August 15.PC Rao, honorary president of the Bengaluru Hotel Association, alleged that Swiggy's "unscientific deductions" are causing heavy losses to restaurant owners. He alleged that restaurants earning Rs 1 lakh through the platform are left with only around Rs 40,000 after commissions, discounts and other deductions.Rao said the issue affects both restaurants and customers. He added that the Bengaluru Hotel Association, Karnataka Hotel Association and the National Restaurant and Bar Association have joined the protest. He said restaurants will continue working with Swiggy and Zomato if the deductions are rationalised. Otherwise, they will withdraw from both platforms after August 15.