Bengaluru Restaurants Threaten Boycott of Food Delivery Apps Starting August 15

In a significant move, restaurants in Bengaluru have issued a stern warning to food delivery services like Swiggy and Zomato, indicating they may cease accepting orders from these platforms beginning August 15. This ultimatum arises from ongoing frustrations regarding high commissions and platform-driven discounts that have adversely impacted the profitability of local eateries. The Bangalore Hotels Association (BHA) made this announcement during a meeting held on July 29, following nearly ten months of discussions with the food delivery companies. Restaurant owners have expressed that the steep commissions, combined with discounts funded by the platforms, have severely reduced their profit margins, as reported by the Times of India.

The restaurant owners contend that the current business model not only harms their financial viability but also affects consumers, who often end up paying more than they would directly at the restaurant, even when promotions such as free or discounted deliveries are offered. This situation has led to a loss of control over menu pricing for the restaurants, further complicating their ability to maintain profitability. PC Rao, the president of the BHA, emphasized that the food aggregators, including Zomato and Swiggy, have been given a 15-day window to address these grievances. He stated, “We have now given them 15 days to rectify these, failing which, we will take a joint decision with other associations.” This warning highlights the urgency of the situation, as approximately 20,000 out of 34,000 hotels and restaurants in the area are currently listed on these online food delivery platforms.