Restaurant associations in Bengaluru have threatened to stop accepting orders through Swiggy from August 15 unless the food delivery company agrees to renegotiate commission structures, discounts and other commercial practices that owners say have sharply reduced their margins, officials said on Wednesday, adding that Zomato could also face a boycott if similar concerns remain unresolved.
The warning comes from the Bruhat Bengaluru Hotels Association, the Bangalore Hotel Association, the Karnataka Hotel Association and the National Restaurant and Bar Association, which say they are seeking a more transparent commercial relationship rather than an end to online food delivery partnerships.
Talks with Swiggy, Zomato to decide boycott
The associations are scheduled to meet Swiggy next Monday, while discussions with Zomato are expected later this week or next week. They said a final decision on the boycott would depend on the outcome of those meetings.
S Subramanya Holla, president of the Bruhat Bengaluru Hotels Association, said commissions, which can reach about 28%, have become a major concern, forcing many restaurants to increase menu prices to offset deductions. “Most restaurants are marking up by almost 40%,” Holla said.
{{/usCountry}}S Subramanya Holla, president of the Bruhat Bengaluru Hotels Association, said commissions, which can reach about 28%, have become a major concern, forcing many restaurants to increase menu prices to offset deductions. “Most restaurants are marking up by almost 40%,” Holla said.
{{/usCountry}}Also read: Delhi restaurant accuses Zomato of 'manipulation', company responds
Associations object to discounts, ad costs
The associations also objected to promotional discounts and advertisements that they say are introduced without the consent of restaurant owners. They said they bear the entire cost, while multiple deductions on online orders leave little room for profit. Swiggy and Zomato had not issued any public statement on the dispute at the time of publication. Neither company responded to requests for comment on the allegations and proposed boycott.