Ordering food late at night has become second nature for many Bengaluru residents. Whether it is a quick dinner after work or a midnight snack, food delivery platforms like Swiggy and Zomato have transformed the way people dine. However, this convenience could soon face a major disruption. Thousands of restaurants in Bengaluru have warned that they may stop accepting orders through the two food delivery giants if their long-pending concerns remain unresolved.
The warning comes after months of discussions between restaurant owners and food delivery platforms failed to produce a satisfactory outcome. According to restaurant associations, rising commissions, aggressive discounting, and limited control over pricing have put immense pressure on businesses. If no agreement is reached within the next two weeks, customers across the city could see a significant reduction in restaurants available on food delivery apps from August 15.
Bengaluru Restaurants Issue A 15-Day Ultimatum
The Bangalore Hotels Association (BHA) made the announcement during a meeting held on Wednesday, July 29. The decision followed nearly ten months of discussions with major food delivery aggregators, including Swiggy and Zomato.
Restaurant owners claim that the existing business model is becoming increasingly difficult to sustain. They argue that while food delivery platforms continue to grow, restaurants are being forced to absorb high commission charges and participate in platform-funded discounts that reduce their overall earnings.
According to the association, if the concerns are not addressed within the stipulated period, restaurants will collectively reconsider their association with online delivery platforms.
High Commissions And Discounts At The Centre Of The Dispute
One of the biggest concerns raised by restaurant owners is the commission structure charged by food delivery companies. They believe the percentage retained by aggregators significantly reduces their already thin profit margins.
Restaurant owners also say that promotional offers and discounts often create the impression that customers are getting cheaper meals. However, they claim that these discounts come at a cost to restaurants, affecting profitability and operational sustainability.
Another major issue is menu pricing. According to the association, restaurants are gradually losing control over how their products are priced online. They argue that consumers often end up paying more than they would if they visited the outlet directly, even when delivery charges appear to be discounted or waived. This, they say, creates dissatisfaction among both businesses and customers.
’15 Days To Rectify These’
BHA President PC Rao said that the food delivery companies have been given a final opportunity to resolve the issues. He said, “We have now given them 15 days to rectify these, failing which, we will take a joint decision with other associations.”
The association believes the discussions should lead to practical solutions that allow restaurants to operate profitably while ensuring consumers continue to enjoy convenient delivery services.
However, if the concerns remain unresolved, restaurants are prepared to take collective action.
Thousands Of Restaurants Could Stop Online Orders
The impact of a potential boycott could be substantial. According to the BHA, Bengaluru has nearly 34,000 hotels and restaurants, of which around 20,000 are currently listed on online food delivery platforms.
If a significant number of these establishments withdraw from Swiggy and Zomato after August 15, customers may notice fewer restaurant options while ordering online. Popular late-night eateries, neighbourhood restaurants, and independent food outlets could disappear from delivery apps until an agreement is reached.
For consumers who have become dependent on food delivery services, particularly during weekends and late-night hours, such a move could cause considerable inconvenience.
NRAI Supports Concerns But Prefers Dialogue
The National Restaurant Association of India (NRAI) has backed the concerns raised by restaurant owners but has encouraged both sides to continue discussions instead of escalating the dispute. According to the association, maintaining a healthy relationship between restaurants and delivery platforms is in the interest of the entire food service industry. NRAI President Sagar Daryani said,
“It is unfortunate that restaurants felt so cornered that they believed a boycott of Swiggy and Zomato was their only option.”
His statement reflects the growing frustration among restaurant owners while also highlighting the importance of finding a mutually beneficial solution through negotiations rather than confrontation.
A Long-Running Battle Between Restaurants And Delivery Platforms
The disagreement between restaurants and food delivery companies is not new. Similar concerns have surfaced repeatedly over the past few years as online ordering became an essential part of India’s food business.
Platforms such as Swiggy and Zomato have undoubtedly changed the dining landscape. They have made ordering food faster, easier, and more accessible for millions of customers across the country. During the pandemic, these services also played a crucial role in helping restaurants continue operations despite restrictions on dine-in services.
At the same time, many restaurant owners argue that increasing dependence on delivery platforms has come at a cost. They say rising commissions, mandatory participation in promotional campaigns, and reduced flexibility in pricing have made it harder to run sustainable businesses.
Many independent restaurants, in particular, believe they have little bargaining power compared to large delivery platforms.
What Happens Next?
The next two weeks are expected to be crucial for both restaurants and food delivery companies. If Swiggy and Zomato address the concerns raised by the Bangalore Hotels Association, the proposed boycott may be avoided. However, if negotiations fail, thousands of restaurants could stop accepting online orders from August 15, disrupting one of Bengaluru’s busiest food delivery markets.
Industry observers believe both sides have strong reasons to reach common ground. Restaurants rely on online orders for a significant share of their business, while delivery platforms depend on a diverse network of eateries to keep customers engaged.
Conclusion
The warning issued by Bengaluru’s restaurant community marks another significant chapter in the ongoing debate over the economics of food delivery platforms. While apps like Swiggy and Zomato have revolutionised food ordering in India, restaurant owners argue that the current model is becoming increasingly unsustainable.
With a 15-day deadline now in place, all eyes will be on the negotiations between the two sides. A successful resolution could preserve the convenience customers enjoy today. If not, Bengaluru’s food lovers may soon find far fewer options available on their favourite delivery apps, especially after August 15.
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