Published Aug 05, 2026 | 4:12 PM ⚊ Updated Aug 05, 2026 | 4:12 PM
Representative image of Swiggy delivery workers.
Synopsis: Bengaluru’s hotel and restaurant owners are pushing back against rising commissions and alleged unfair practices by food delivery platforms, with some warning of a boycott from August 15.
Hotels and restaurants across Bengaluru have renewed their threat to boycott food delivery platforms Swiggy and Zomato from August 15 unless the companies address long-pending concerns over commissions, discounts and billing practices. Industry bodies expect the protest to lead to more than 20,000 restaurants in the city temporarily going offline from the two platforms.
The protest is being spearheaded by the Bengaluru Hotels Association (BHA), Bruhat Bengaluru Hotels Association (BBHA), Karnataka State Hotel Association and the Karnataka Bakery and Sweets Association.
Among the concerns raised by the hotel associations are the rising cost of doing business online, owing to whopping commissions levied by the platforms.
Surendra V, owner of cloud kitchen Tasty Bites, said commissions have risen sharply in the past year.
“Earlier I used to pay around 5-7% commission. Today it has increased to nearly 20-25%. Every additional charge eats into our margins. Running a cloud kitchen without depending on these platforms has become almost impossible,” he said.
Restaurant owners also allege that promotional offers are introduced without adequate notice, forcing them to absorb the cost.
Vikash Prasad, manager at Meghana Foods in Jayanagar, said restaurants often learn about discounts only after they are rolled out.
“There is no fixed pattern. Sometimes discounts are introduced without informing us. Every Thursday there is a 60% offer through Zomato District. Customers benefit, but we continue to pay the same commission, leaving us to absorb the losses,” he said.
Besides commissions, associations have raised concerns over advertising charges, payment gateway fees, long-distance delivery charges and deductions they describe as opaque.
They are also demanding compensation for orders cancelled after food has been prepared and greater transparency in settlement reports.
Arun Kumar Adiga, manager of Vidyarthi Bhavan, said restaurants are often encouraged by Swiggy and Zomato to purchase advertising packages to improve their visibility on the platforms, even when they do not see the need for it.
“Customers know the value of Vidyarthi Bhavan. We’ve built our reputation over decades. Why should we pay extra just to appear at the top of the listings? Restaurants with an established customer base shouldn’t be compelled to spend more on advertisements to remain visible,” he said.
Also Read: Biryani, booze and the body: What South India’s favourite weekend feast does over time
After nearly ten months of discussions, restaurant owners say they are yet to receive concrete assurances from the platforms.
BHA president P.C. Subrahmanya Holla said discussions with executives of Swiggy and Zomato were aimed at resolving issues related to commissions, billing transparency and discount policies which have “ become increasingly unfair to restaurant owners”.
Even as he welcomed the introduction of an OTP-based approval mechanism for promotional discounts –saying it gives restaurants greater control over offers– Holla added that the industry expects broader reforms on commissions and deductions before calling off the proposed boycott.
According to the associations, Bengaluru has around 34,000 hotels and restaurants, with nearly 20,000 listed on food delivery platforms. They warn that unless a mutually acceptable solution is reached before August 15, thousands of restaurants could suspend operations on Swiggy and Zomato for the day, affecting customers across the city.
The dispute has also opened the door for emerging competitors. Rapido-backed Ownly, which operates on a zero-commission model, is looking to expand its presence in Bengaluru. Restaurant owners said they are evaluating the platform as a potential alternative, hoping it will reduce their dependence on the Swiggy-Zomato duopoly while offering a more sustainable commercial model.
The South First has reached out to Swiggy and Zomato for their response to the protests. The copy will be updated if and when they respond.
(Edited by Fayisa CA)
