From INR 1 Lakh to INR 40,000: Why Bengaluru Restaurants Are Planning To Boycott Swiggy
Bengaluru restaurant associations have threatened to boycott Swiggy and Zomato after August 15 over high commissions, mandatory discounts, and deductions. Leaders claim restaurants keep only INR 40,000 from INR 1 lakh in sales, demanding urgent structural reforms. Scroll below to see the association's list of key demands.
Bengaluru’s restaurant owners have issued a strict ultimatum to online food delivery platform Swiggy, threatening a complete boycott and citywide shutdown if their demands are not addressed by August 15. The brewing conflict stems from mounting grievances over high commissions, mandatory deep discounts, and multiple deductions that association leaders argue are severely undermining restaurant profitability.
Core Demands and Transparency Issues
The restaurant sector is pushing for a fairer, more transparent partnership model. Representatives have explicitly urged Swiggy to halt the practice of offering discounts without the prior consent of restaurant partners while demanding greater clarity regarding advertisement charges and payment gateway fees. Who Is Nandita Sinha? All You Need To Know About the New CEO of Swiggy Instamart.
The association's list of key demands includes:
- Halting automatic deductions following customer complaints.
- Exempting restaurants from bearing losses when orders are cancelled post-preparation.
- Providing detailed settlement reports for all deductions.
- Eliminating one-sided agreement terms.
- Appointing a dedicated relationship manager for every registered establishment.
Heavy Financial Strain on Owners
P.C. Rao, Honorary President of the Bengaluru Hotel Association, voiced strong concerns regarding the financial viability of operating on delivery platforms under current conditions. "Swiggy is making unscientific deductions, causing heavy financial losses to restaurant owners," Rao stated. Rao claimed that after generating business worth INR 1 lakh through the platform, restaurants are left with only about INR 40,000 due to cumulative commissions, mandatory discounts, and miscellaneous charges. He noted that the current operating framework harms both businesses and consumers, prompting a unified front between the Bengaluru Hotel Association, the Karnataka Hotel Association, and the National Restaurant & Bar Association. Mahua Moitra Slams Swiggy Over Order Cancellation and Charges, Says 'No Dinner & No Service'.
Upcoming Deadline and Next Steps
Restaurant leaders have called on Swiggy’s management to initiate formal dialogue with representatives before the deadline. According to association leadership, owners are willing to maintain their business relationships if structural changes are implemented and deductions are halted. However, failure to reach a satisfactory resolution by August 15 will lead to a withdrawal from Swiggy, with potential plans to extend the boycott to Zomato thereafter.
(The above story first appeared on LatestLY on Jul 29, 2026 05:46 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).