- Zomato's deadline extended to Sept 1 to address restaurant partners' concerns
- Restaurant associations will meet Zomato and Swiggy executives next Thursday
- Swiggy's Aug 15 deadline remains unchanged amid ongoing discussions
Restaurant associations of Bengaluru, Karnataka and the country have extended the deadline for Zomato to address key concerns raised by eateries, giving the food delivery platform until Sept. 1 to resolve pending issues.
The extension comes after fresh discussions between the two sides and follows assurances from Zomato's top management that most of the industry's major concerns will be addressed before the revised deadline, says the Bengaluru restaurant association.
Representatives of the National Restaurant Association of India, the Karnataka and Bengaluru restaurant associations, and executives from Zomato and Swiggy met at 12:30 p.m. on Thursday to continue discussions.
The latest development provides temporary relief to Zomato, which was earlier facing the prospect of restaurants halting the processing of its orders from Aug. 15 if negotiations failed. The deadline has now been pushed back to Sept. 1 to allow more time for discussions.
The decision to extend the timeline was taken after Zomato sought additional time to work on the issues flagged by restaurant partners. The company's chief executive has expressed willingness to resolve most of the larger concerns before Sept. 1, according to people familiar with the matter who spoke on the condition of anonymity.
However, the same relief has not been extended to Swiggy. Restaurant associations have retained the Aug. 15 deadline for the platform, indicating that discussions with Swiggy have not yet reached a similar stage.
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 discounting and deep promotional campaigns, timely and transparent payment settlements, and an end to unilateral deductions from restaurant payouts.
The dispute has been building over the past few 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 processing orders from food delivery platforms if their demands remained unaddressed. On Aug. 6, the deadline for Zomato was extended after the company sought more time for negotiations.
The outcome of these talks is significant for both restaurants and food delivery platforms. For cloud or dark kitchens, food delivery apps account for virtually 100% of revenue, making platform access 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 exchange between restaurant bodies and delivery platforms, sources said there had been negligible business disruption so far. They added that both sides remain engaged in discussions and were broadly aligned on finding a mutually acceptable way forward rather than allowing the dispute to escalate.
The meeting is expected to determine the next course of action, particularly for Swiggy, while restaurants will closely watch whether Zomato is able to deliver on the commitments made before the revised Sept. 1 deadline.
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