- Restaurant associations extended the deadline to halt orders from Swiggy and Zomato to Aug 31
- The extension follows discussions on commissions, discounting, and payment settlements with platforms
- Associations seek transparency in commission structures and an end to forced discounts and deductions
Restaurant associations have extended the deadline to halt accepting orders from Swiggy and Zomato until Aug. 31, following a fresh round of discussions with the food delivery platforms on Thursday.
The extension comes as a relief for both food delivery platforms. Restaurant bodies had earlier warned that member restaurants could stop accepting orders from the platforms from Aug. 15 if their demands were not addressed.
Representatives of Restaurant Associations and executives from Swiggy and Zomato met at 12:30 p.m. to discuss concerns raised by restaurants over commissions, discounting practices and payment settlements.
The joint representation includes the National Restaurant Association of India, which has 27 chapters across India, along with the Bruhat Bengaluru Hotel Association, Karnataka State Hotel Association and the Karnataka Bakery, Sweets & Caterers Association.
Following Thursday's meeting, the associations decided to postpone the proposed boycott by over two weeks to allow further discussions with both companies.
Restaurant bodies have been seeking greater transparency in the way food delivery platforms operate. Their demands include better visibility into commission structures, an end to forced discounts and deep promotional campaigns, timely and transparent payment settlements, and an end to unilateral deductions from restaurant payouts.
The dispute has been brewing for several weeks. In late July, restaurant bodies publicly raised concerns over platform practices, arguing that rising commissions, opaque deductions and discount-led customer acquisition strategies were hurting restaurant profitability. Between July 28 and July 30, associations warned that they could stop accepting orders from the platforms if the issues remained unresolved.
The latest meeting marks the first formal engagement between restaurant associations and representatives of both Swiggy and Zomato after the boycott warning was issued. According to people familiar with the discussions, both sides agreed to continue negotiations over the coming weeks, prompting the associations to defer the deadline until Aug. 31.
The outcome of the talks is significant for the restaurant industry. For cloud or dark kitchens, food delivery platforms account for virtually 100% of revenue, making uninterrupted access to the apps critical for business continuity. For dine-in restaurants, delivery contributes anywhere between 5% and 30% of revenue, depending on the format, location and customer mix.
Despite the public standoff, sources said there has been negligible impact on business operations so far, with restaurants continuing to process orders through both platforms. They added that discussions have been constructive and there is broad alignment on working towards a mutually acceptable solution.
The extension gives Swiggy and Zomato additional time to address the industry's concerns while avoiding an immediate disruption to food delivery services. Restaurant associations and the platforms are expected to continue negotiations before the revised Aug. 31 deadline.
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