Food delivery platforms’ commissions, discounts burden Guwahati restaurants

GUWAHATI, Aug 13: Online food delivery may promise customers speed and convenience, but for many restaurants, the business model is becoming increasingly difficult to sustain. Restaurant owners in Guwahati allege that commissions, discounts, promotional charges and other deductions imposed by food delivery platforms are steadily eating into their margins. What began as a mutually beneficial partnership that enabled restaurants to reach a wider customer base is now turning into a source of growing friction, with restaurant owners accusing delivery platforms of tilting the balance in their favour. Several hotel and restaurant owners alleged that platforms deduct various charges from their earnings without adequate prior communication or explanation. Some claimed that deductions on certain orders can exceed 50 per cent of the revenue, leaving little to meet staff salaries, operational expenses and maintenance costs. They also alleged that platforms charge heavily for promotional advertisements. According to the owners, restaurants that opt out of paid promotions often experience a decline in online visibility, forcing them to resume advertising to remain competitive. Restaurant owners further claimed that although platforms frequently offer discounts to customers, the financial burden is largely borne by the eateries. The All Assam Restaurants’ Association (AARA), which has been engaging with food delivery platforms over the issue, alleged that the companies were misusing their dominant position in the market. “We are almost blackmailed into continuing business with these platforms because opting out is no longer a practical choice,” an AARA member told The Assam Tribune. “Our regular customers not only visit our restaurants but also order through these apps. If we sever ties with the platforms, many of them may simply switch to other restaurants available online,” he added. The owner of a popular restaurant on RG Baruah Road said the mounting costs associated with online platforms were forcing many eateries to increase menu prices. “Ultimately, customers will bear the burden because restaurants are left with little option but to increase prices to sustain their businesses,” he said. However, a senior official of a leading online food delivery platform rejected the allegations, asserting that all charges and policies are communicated transparently to partner restaurants. “Many restaurant owners are not very tech-savvy and often miss important updates sent through emails and messages. In many cases, the communication gap is from their side,” he said. “For instance, if a restaurant remains closed for a few days without informing us, orders continue to be accepted. That naturally affects customer experience and the restaurant’s performance metrics. It is not a case of us manipulating ratings,” he added. The official said every partner restaurant is assigned a point of contact (POC) to facilitate communication, apart from other support channels available on the platform. On commissions, he said rising input costs triggered by recent geopolitical developments had squeezed restaurant margins. According to him, the platforms had not increased their share of the revenue and restaurants might need to revise menu prices to offset higher raw-material costs. The dispute is not confined to Guwahati. In Bengaluru, hotel and restaurant associations have deferred a proposed withdrawal from food delivery platforms Swiggy and Zomato until August 31 following discussions with the companies over long-pending concerns, including commissions, deductions and platform practices. Several Bengaluru associations had earlier threatened to stop accepting orders through the platforms from August 15 if their concerns remained unaddressed.




