Restaurant owners in Bengaluru have raised concerns over mounting financial losses allegedly caused by unauthorised discounts applied to orders on leading food delivery platforms Swiggy and Zomato.
According to a report by Deccan Herald, several restaurateurs claim that discounts are being automatically applied to customer orders without their knowledge or consent, eroding already thin profit margins.
Nikhil Agarwal, owner of Bamey’s in Koramangala, described discovering an ₹80 discount applied to Swiggy orders without prior approval. He noted that similar instances had occurred on Zomato, where discounts of up to 40 percent were applied multiple times over a six-month period. “This has become far too common,” he reportedly said, expressing frustration over the lack of control.
A Duopoly Dilemma
Industry stakeholders point to the dominance of the two platforms as a key challenge. Restaurateurs allege that agreeing to a promotional offer on one platform often triggers matching or more aggressive discounts on the other—without explicit consent. Moreover, neither platform withdraws such offers independently, effectively trapping businesses in a cycle of continuous discounting.
Mounting Financial Impact
The financial implications have been significant. Amit Sharma, Managing Partner of the NH8 restaurant chain, reported losses amounting to ₹13 lakh due to auto-applied discounts across his outlets and cloud kitchens. After nearly two years of follow-up, he received a partial refund of ₹10 lakh in March 2026 and has since withdrawn his businesses from Swiggy.
Industry-Wide Concerns
Ananth Narayan, Bengaluru Chapter Head of the National Restaurant Association of India, confirmed that similar complaints have been reported across the city. These include concerns over unilateral discounting, rising commission structures, unexplained deductions, and delays in payments.
The NRAI is currently engaged in discussions with platform leadership to address these issues, as restaurant owners call for greater transparency and control over pricing and promotional strategies.
The developments highlight growing tensions between food delivery aggregators and their restaurant partners, raising broader questions about platform practices, fairness, and sustainability within India’s rapidly expanding online food delivery ecosystem.
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