Bengaluru restaurants to boycott Swiggy, Zomato from August 15. Here's why

Ordering biryani from Swiggy or Zomato after August 15? Your favourite Bengaluru restaurant might vanish from Swiggy and Zomato soon — and it's not about food quality. Over 1,000 hotel and restaurant owners across the city have threatened to pull out of these apps starting August 15, accusing them of silently slashing prices with hidden discounts, charging steep commissions, and squeezing already-thin profit margins. Restaurant associations say they've had enough of unapproved deductions eating into their earnings while they bear every other cost — rent, staff, raw materials.

If the tussle continues, thousands of eateries could go offline overnight. Here's what's driving the standoff, and what it means for your next food order.

Why are the restaurants threatening to boycott Zomato, Swiggy?

Restaurant associations across Bengaluru have threatened to boycott online food delivery platforms Zomato and Swiggy from August 15 onwards if their demands over commissions, discounts and other deductions are not met by then.

What are the restaurants' key demands?

The restaurant associations have sought a formal, written response from Swiggy and Zomato before August 15. They want both companies to address the following points:

• Money should not be automatically deducted immediately after a customer complaint
• Restaurants shouldn't have to bear losses if an order is cancelled after the food has been prepared
• Absolute freeze on running promotional campaigns and ad spends without explicit written consent
• A comprehensive, itemised monthly settlement report on deductions
• No discounts without restaurant consent 
• Allocation of a dedicated relationship manager for individual restaurants to quickly resolve payment discrepancies

How have Swiggy and Zomato commissions dented restaurants' balance sheets?

According to the restaurant associations, their margins were severely impacted due to arbitrary commissions, auto-applied discounts and opaque charges. The restaurants would continue with the platforms if the issues are addressed, but member restaurants would delist if the platforms failed to resolve the issues.

"Swiggy must respond appropriately to the problems we are facing. They should stop making arbitrary deductions from our payments, forcing additional discounts, and levying advertising charges. These practices are becoming a burden not only on hotel owners but also on customers," PC Rao, President, Hotel and Restaurant Association, told India Today.

He added, "We urge Swiggy to completely stop these practices. We will hold discussions with the company in the coming days. However, the outcome should not remain limited to assurances; it must be reflected in action. If Swiggy implements the necessary changes, we will continue our association with the platform. Otherwise, we have decided to take all necessary steps to completely discontinue our partnership with Swiggy."