Bengaluru: The fight between Bengaluru’s restaurants and online food-delivery platforms has become a matter of survival and customer engagement.While restaurant owners accuse food service platforms such as Swiggy and Zomato of imposing high commissions and running promotions without their consent, a majority are worried about the exorbitant prices that would only burden the customer.“How is it that a plate of idli is Rs 30-35 at the restaurant, while the same costs Rs 80-90 when ordered online? The restaurant price and online price should be the same. Only the delivery charges should vary. Restaurant owners said their concerns are not against online delivery platforms, which have helped them generate additional business, but against the way the current model operates,” underlined Raghavendra Padukone, founder of By2 Coffee chain.Here are the major issues listed by leading hoteliers:Multiple deductions reducing payouts: Online delivery platforms collect multiple charges: Commission per order, eaters to pay platform fees, collection charges, payment gateway charges, GST on service charges, cancellation charges, long-distance charges and promotional expenses. These result in restaurants receiving less than half of their actual sales value, impacting margins. GK Shetty, president, Karnataka State Hotel Association, said: “Online food delivery platforms are making heavy deductions without our permission.”Ads and discounts without approval: Platforms are independently running advertisements, discounts and campaigns and recovering the cost from hotel partners without confirmation. Owners said an email notification from platforms cannot be considered consent. Bangalore Hotels’ Association honorary president PC Rao added: “If I have agreed to a 20% commission, they should deduct only that amount and not more..”Be transparent: Hotel owners expecting to receive 70% of their order value, after commission deductions, are sometimes left with only 30-40%. Owners said platforms are free to decide their commission model but should not impose multiple hidden charges after agreements are signed.Solutions sought from online food delivery platformsCap total service charges and deductions below 20%.Collect only the agreed commission amount without additional hidden charges.Seek explicit approval from restaurants before running advertisements or discount campaigns.Introduce OTP-based or direct consent mechanisms for paid promotions.Provide transparent settlement statements with complete breakup of deductions.Establish a proper escalation system for restaurant complaints.Review GST applicability on platform service charges.Maintain a fair partnership model where delivery platforms remain service providers.
