Bengaluru Restaurants Threaten Swiggy and Zomato Boycott Over Commission Fees

Restaurant owners in Bengaluru have set an August 15 deadline to boycott major online food delivery aggregators Swiggy and Zomato. The trade body representing local eateries announced the decision following growing frustration over excessive commission rates and unfair business practices. Owners are demanding immediate structural changes, fair revenue-sharing models, and an elimination of opaque billing practices that squeeze profit margins for brick-and-mortar food establishments across the city.

The planned exodus stems from escalating operational costs imposed by the food tech platforms. Restaurant proprietors report that commission charges have risen steeply, combined with hidden deductions for platform-driven discounts and promotional schemes. Eateries argue that these high fees eat into thin operating margins, leaving many businesses financially unviable. Previous discussions between dining establishments and delivery operators failed to resolve disputes over transparent billing and platform accountability.

The threat poses a significant challenge for Swiggy and Zomato in one of India's top urban markets for online food ordering. If the deadline passes without a compromise, consumers in Bengaluru face widespread disruptions in food delivery services starting mid-August. Industry analysts note that similar anti-commission protests in other metropolitan centers could gain momentum if Bengaluru's restaurant association successfully coordinates a unified shutdown of aggregator operations.